Once you turn 65, it’s easy to feel like you’re made in the shade.
Part A is premium-free if you’ve paid into Medicare for ten years.
Part B is reasonable, with a monthly premium of only $174.70.
Even Part D, prescription insurance, is affordable. Some plans start at only $10 a month!
If your adult life has been fraught with the very real struggle of trying to find affordable healthcare, Medicare can feel like a blessed relief. And it is!
But…
There are gaps in Medicare!
Part A has a hefty deductible of $1,632.00 for hospital visits (meaning, you would have to pay this amount out-of-pocket before Medicare coverage starts).
Part B only covers 80% of doctor bills and procedures. You are on the hook for paying the leftover 20% every time you go to the doctor or have a procedure like a MRI. Costs can really rack up here!
To protect your pocket-book and retirement savings, we highly recommend that all our clients on Original Medicare enroll in a Medigap policy, like a Plan G:
Plan G covers the following:
- Part A co-insurance and hospital costs
- Part B co-insurance and co-payments
- Blood (first three pints)
- Part A Hospice care coinsurance
- Skilled nursing facility care coinsurance
- Part A deductible
- Part B deductible ($226 in 2024)
- Foreign travel emergency (up to plan limits)
A Plan G GREATLY helps mitigate your out-of-pocket exposure. We want you to use your retirement savings to enjoy retirement, not pay medical bills.
But here’s the kicker: once you enroll in Medicare Part B, the clock starts ticking.
You only have a six-month window of time to enroll in a Medigap policy with no underwriting.
That means that you can enroll in any Medigap policy regardless of pre-existing health conditions.
After that six-month window of time has passed (also known as your guaranteed-issue period), you ARE subject to underwriting and may be turned down from enrolling in the Medigap policy of your choice or have to pay a higher premium.
Just to reiterate: once you enroll in Medicare Part B, your six-month guaranteed-issue period begins. After this, you are NOT guaranteed a Medigap policy.
We are here to walk you through ALL the confusing dates and periods of Medicare. If talking through your options and questions would help, I’m always available for a chat. Click this link to schedule a phone call on my online calendar: https://martinassociates.as.me/schedule.php?calendarID=2839926