Simplify Medicare by planning ahead

June 18, 2024

Terry Kane
Retirement Planning Consultant

For many, Medicare can seem complicated and confusing.

Ensuring you don't miss sign-up deadlines and that you're adequately covered and don't have a lapse in health care coverage when you retire can seem like a daunting task. Just like Social Security, there's a bit more to it than turning 65.

The first step to understanding the Medicare system is to familiarize yourself with Parts A through D.

• Part A (no cost) - Hospital coverage: Includes hospital stays, nursing home care, hospice and home health care.
• Part B (monthly premium) - Medical coverage (health insurance): Includes medically necessary services, doctor's office visits, lab work, X-rays, outpatient surgery and preventative services.
• Part C - Advantage plans (supplemental coverage): Offered by private insurance companies and can offer additional coverage such as vision, dental, hearing and prescriptions.
• Part D - Prescription drugs: Offered by private insurance companies.

The next step to navigating Medicare is to plan ahead. Several points exist to remember to ensure you get the coverage you need when you need it.

1. Enrollment - You can enroll for Medicare over a seven-month period. From three months before, through the month of, to three months after your 65^th birthday, you are eligible to enroll for Parts A and B without penalties if you have no group health plan. If you have a group health plan, you can still sign up for Part A but can postpone enrolling in Part B until you come off the group health plan.
2. Part B requires separate enrollment but can be completed at the same time as Part A.
3. Enroll in Part D (prescription drugs) when you are first eligible (if you are not on a group health plan) to avoid penalties.
4. Part C (Medicare Advantage) - Medicare does not cover everything, and these supplement plans can help with extra expenses. Most require Part A and B enrollment. Medigap (Medicare Supplement) plans can also provide supplemental coverage to Medicare.
5. Open enrollment - Medicare does offer a general election period from January 1 through March 31 if you missed your initial enrollment period for Part B. Your coverage will start July 1 of the year you enroll. For Part C and D changes, you can enroll in a new plan from October 15 to December 7 of every year, and coverage will start on January 1 of the next year.

Don't get caught without the health care coverage you need when you retire.

Plan ahead and complete all your necessary enrollments before any penalties can take hold. For assistance with Medicare and Social Security planning, call Terry Kane at 888-556-0123 or email terry.kane@honkamp.com.