Approaching 65? Make sure you register for Medicare coverage even if you are planning to continue to work. You should contact Social Security about three months before your 65th birthday to sign up for Medicare. When you delay you may end up paying a higher rate as a penalty for Part B for the rest of your life. If you have a company plan you will need to understand how it will interact with Medicare.
Fidelity, EBRI, and HealthView Services have estimates that range from $230,000 a couple to $369,000 a person will be needed to cover 17 to 20 years of retirement healthcare cost. These numbers do not even include the cost of long term care. Does this seem high? In 2010 insurance costs alone averaged around $3,300. When you add in deductibles, co-pays, over the counter drugs, glasses, and dental care, the out-of-pocket costs can easily exceed $5,000 a year. It can be much worse if you have health issues.
With our government so in debt the trend to shift more costs to the consumer is likely to continue. A little retirement planning can help protect you from some of the daunting expenses. Purchasing a Medicare supplement and Medicare Part D coverage is one way to do that.
When you turn 65 and first start receiving Medicare Part B coverage you have a six month window during which insurance companies have to sell you a Medicare supplement plan if you want it. During this initial enrollment period you cannot be charged anymore for your Medicare supplement than anyone else regardless of any preexisting condition. Once you are in a plan then it is guaranteed renewable as long as you pay your monthly bill.
Medicare Part D is a prescription drug plan. The first step to finding a plan is to get your prescription information together and use the tool at Medicare.gov (medicare.gov/find-a-plan/questions/home.aspx) to find a plan that best matches your needs. It is important to review your Medicare D coverage annually to see if a different company can provide lower cost coverage.
Health care is expensive and retirement can be too, but that doesn’t mean that turning 65 and retiring cannot be a great experience. Understanding some of the potential cost and planning for them will make the experience even better.
If you would like to see who has the best priced Medicare supplemental insurance in your area please click here. One of our agents will pull some Medicare supplement quotes for you and email them to you.