Get to know the basics
Download our Starter Guide for a clear, simple introduction to Medicare.
Having options is one of the best things about Medicare. It allows you to analyze your lifestyle and pick a coverage option based on your individual needs.
It’s important to start your research before your enrollment period because you have so many options. Setting aside time to really think about your current needs and anticipate what may arise in the future serves as an important framework for your ultimate decision. To help with your research, ask yourself the following questions before settling on a plan.
Do I need anything in addition to Original Medicare?
Original Medicare only covers 80 percent of your medical costs and offers no prescription drug coverage. In addition, only Medicare Advantage plans typically offer extras like dental, vision and hearing benefits.
What are the expected costs for Medicare?
It’s important to analyze what your retirement budget will look like and plan accordingly. Many people don’t realize that even Original Medicare Part B comes with a monthly premium and can vary depending on income. Most of the time, this premium is automatically deducted from your Social Security check. Medicare Supplemental Insurance (Med Supp) also has a monthly premium that can vary depending on age, location, health status and many other factors.
It’s also worth noting that most supplements don’t offer prescription drug, dental, vision or hearing benefits. As a result, in addition to your monthly Original Medicare premium, you’ll be paying separate premiums for your Med Supp and prescription drug coverage. All these premiums can add up and still leave you without vision, dental and hearing benefits. Alternatively, most Medicare Advantage plans offer $0 premium plans. These plans operate on a pay-as-you-go basis but come with a spending cap so that you know your care will never exceed a certain amount each year.
Do I need drug coverage even if I don’t take medication regularly?
Though you might currently use medications on a limited basis, as we age, we often develop conditions that require costly prescriptions. You can add Part D drug coverage to Original Medicare for a separate monthly premium, or you can sign up for a Medicare Advantage plan since most include drug coverage.
Do I plan to travel outside of the country often?
If you’re a worldwide traveler, consider a Medicare Advantage plan or Med Supp that offers emergency overseas coverage. Do a little digging into plans in your area and find out who offers the most worldwide coverage for the best value.
Do I plan to travel within the U.S.?
If you spend a lot of time out of town, it’s important to make sure you have coverage options anywhere in the United States. In a way, traveling inside the U.S. is like traveling abroad in that most Medicare Advantage plans and Medicare Supps will cover your emergency or urgent care needs while away from home. If you’re a snowbird, however, and leave for months at a time and see doctors regularly in multiple locations, a Med Supp or Medicare Advantage PPO plan may work better for you.
What if I need dental, vision or hearing coverage?
The extras not offered in Original Medicare are available through most Medicare Advantage plans but not usually through a Med Supp. Depending on which Medicare Advantage plan you choose, the coverage ranges from light to extremely comprehensive.
Will I need long-term care?
Original Medicare, Medicare Advantage and Med Supps don’t offer long-term care. However, options are available for long-term care insurance outside of Medicare if you decide it’s needed. Before signing up for long-term care insurance, be sure to research your options or talk to a financial adviser. In some cases, Medicare recipients are also eligible for Medicaid, and Medicaid does offer some long-term care coverage.
Am I willing to change doctors?
Having a doctor that you know, and trust is a really good thing. If keeping your physician is important to you, it’s worth checking whether they accept Medicare or a certain plan. Finding out that information first could serve as a determining factor in your decision.
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