Avoid Mistakes When Enrolling in Medicare
Soon you will be enrolling in Medicare. Welcome to the club! This is an important event! This is the health insurance program you will have for the rest of your life. I’d like to offer you important information that can help you avoid common mistakes that can really cost you coverage and money in the years ahead. So here we go…
Medicare is NOT free and it does NOT pay for ALL your medical expenses. In fact, with some exceptions, Medicare is an 80/20 plan. Generally, after some deductibles, it pays 80% of covered medical expenses and you pay 20%. The big problem is, unlike other insurances you have had; Medicare has no annual cap on your out of pocket expenses. The result is that Medicare alone does not provide catastrophic protection. I will say more on this later.
But here are specific things that you need to know and do now:
- Get enrolled in Medicare. Medicare should begin on the first day of the month you turn 65. If you have not received your Medicare Card in the mail three months before the first day of your birthday month, and many don’t, you are not enrolled. You then need to go to www.ssa.gov and enroll online or call social security. I can help you with this.
- Sign up for Part A and Part B. Part A covers in-patient care. You will pay no premium for this. Part B provides coverage for outpatient care, like doctor visits, lab work, out patient surgery, MRIs etc. Part B costs $144.00 per month Now this is important! If you fail to enroll in Part B at age 65, you will only have select opportunities to do so in the future. When you do, in addition to the $144.00, you will pay a monthly penalty for the rest of your life. If you can remain on a group plan you may only need Part A now, check with your administrator. You also need to compare your group benefits and cost to Medicare to see which is a better fit. I help people with this as well.
- Purchase a Part D prescription drug plan now! Still part of Medicare, these plans are only offered by private insurance companies. You should do this this even if you currently take no prescription drugs. If you wait, two bad things will happen. When you do want or need one, you will pay the premium plus a monthly penalty (you’ve got it) for the rest of your life. The longer you wait, the higher the penalty. Also, if you do not enroll now, you can only get a plan effective January 1. This means if you are prescribed expensive medications costing hundreds or even thousands of dollars per month, you will be paying for them entirely out of pocket until the following January. Which D plan is right for you? I can help you choose.
Medicare is a great program but it has a number of shortcomings. It does not offer catastrophic protection and does not cover all medical expenses. You can address this in two ways. You can purchase a Medicare Supplement Plan, also called Medigap, offered by private insurance companies to fill in many gaps in Medicare. Or you can elect Medicare Part C, called Medicare Advantage, where a private company contracted with Medicare provides all of your Medicare coverage including prescriptions. They have a different approach to paying medical expenses, they do have a maximum out of pocket limit and offer additional benefits not included with original Medicare. Which is best for you? I help people with that decision.
Medicare can be confusing. This has just been an overview and not everything you should know. The thing to do is see a specialist. That’s what I am. The best thing about Medicare is that seeking expert advice will not cost you a penny. Insurance companies pay me much like your home insurance or car insurance agent. I am an independent broker. I represent several of the top Medicare Supplement Companies, 20 of the available 28 Part D Prescription Drug Plans, and all of the companies offering Medicare Advantage. In working with people, my only interest is helping them to acquire the plan THEY feel meets their needs the best. There are no BAD plans just like there are no Perfect plans. The trick is to find the plan that best suits your needs and budget. Once you make a decision, being local I remain available year-round to answer questions and, should your needs change, find another plan that better suits your new situation.
I would certainly like to answer your specific questions and help you find your plan. Please call me at (928)301-0647, or message your name and number and I will call to set an unperson or phone appointment. I look forward to meeting and helping you.
