Medicare Basics: Choosing the Right Plan for You
By When you turn 65, you are now eligible for Medicare – this is an important milestone.
Remember that Medicare is not free, and that is why it is important to understand the ins and outs of this plan before you sign up. Making the wrong choice can be expensive.
Even if you have been on Medicare for years, you may want to re-evaluate your options to make sure you still have the right plan. Here’s some information on how you can choose the right Medicare Plan.
The first big decision Medicare users must make is whether to go with traditional Medicare i.e., Parts A and B, or Part C, which is a Medicare Advantage plan. Medicare Advantage plans can have very low or no monthly premiums, but usually, they require members to get healthcare only from network hospitals and doctors. Both of these options have deductibles, copays, and coinsurance, where you pay only a percentage of the bill.
Americans who choose traditional Medicare usually add a Medigap policy. This is a supplemental policy that covers what Medicare doesn’t. There are 10 types of Medigap policies, offered by groups such as AARP or private insurers, though the costs vary considerably. You can opt for just Parts A and B, but the out-of-pocket costs will cost you big time. This is because traditional Medicare lacks a maximum for out-of-pocket costs. While Medigap policies cover most of these costs.
Traditional Medicare has no cap on the amount you may spend on medical costs in a year. But with Medicare Advantage, you will have access to fewer doctors and hospitals. Some of the plans might even include vision, dental, and hearing coverage, which is not covered by Parts A and B.
Experts state that if you can afford it, choose traditional Medicare with supplemental coverage since this option is what will offer you greater access to top specialists, and you will also not require the insurance company to approve specific treatments. Most importantly, always remember that the system is very complex, and you should seek help when choosing a plan.