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Medicare Secrets you need to know Before you Retire

Are you sixty-five and planning to retire? Then chances are, the Medicare Supplementary Plan is part of your retirement plan. A Medicare Supplementary Plan is a crucial for dealing with your medical costs.

However, millions of Americans fail to understand the dos and don’ts of a Medicare Supplementary Plan. You might know the basics, but we will talk about a few things (or should I say, secrets) which an insurance company will not tell you about.

The top Medicare secrets you need to know

Here is a list of some of the things you need to know about Medigap and Medicare before you get it for yourself.

  • Medicare Advantage Plan is a bit better than a Medical Supplement Plan

As you might be aware, for you to qualify for a Medicare Supplement Plan, you need to have Part A and Part B of the Original Medical coverage. The plans will help you take care of some health costs, such as copayments, coinsurance, and deductibles.

On the other hand, Medicare Advantage Plan provides coverage which is beyond what the Original Medical coverage offers. This means it will still offer the same benefits of Medical Supplements Part A and Part B. Although, there are some extra benefits such as drug prescription, routine dental checkups, and memberships in gyms and fitness programs.

The Medicare Advantage plan is offered by a private insurance company. Though you need to enrol for Part A and B to be able to qualify for this advantage plan.

There is a monthly payment for the premium. There are however some insurance companies which offer premiums for as low as 0%. Oftentimes, most seniors don't know that there is a Medicare Medical Savings Account (MSA). You can look at this Medigap plan to learn more about this and other medicare questions you might have.

MSA is a health insurance plan which helps you to pay for your medical bills. It is part of a Medicare Advantage Plus coverage. Here is how it works.

  • You enrol in the MSA
  • The health insurance company will receive a certain amount of money from Medicare
  • The sum of money is saved in an account for only you
  • Then you can use it to pay for your health costs

One thing you have to note is that there is no premium paid in MSA. This means that, once you spend all the money in your account, all the extra expenses you will have to pay are out of your own company.

  • If you fail to sign up for Medicare Part A or B, it could put you on hook penalty

Once you turn sixty-five, it means you are eligible to enroll for a Medicare Supplement Plan. Usually, there is a seven-month window for an individual to sign up for Medicare Part B. Although it is optional.

This seven month period usually opens up the months directly before turning sixty-five. It will then close the months following. Therefore, if you fail to sign up for Part B during this period, then for the next 12 months, for each month, you will have to pay 10% more.

However, if you enroll in a special enrollment program, you can sign up for eight months without penalty, after the workgroup coverage ends.

Moreover, if you also enrol late for Part D, your monthly premium will also increase. Part D covers prescription drugs. If you are late enrolling, the insurance company will take the number of months you hadn’t enrolled, and multiply it with a certain factor. This factor is usually determined by the national base premium. This will increase the monthly Premium of Part D.

  • The rates for Medicare plans are not equal

An individual who has worked in the US for 40 quarters is eligible for a Medicare Supplement Plan. The more you earn, the more you are likely to pay for your Medicare Plan, especially Part B.

In most cases, a monthly premium plan will cost about $104. If for instance, you earn $75,000 or $170,000, then you have to pay more for your premium. This means an extra $42 for individuals who earns $85,000 or above.

  • There is no family plan in Medicare

We all have different health conditions. This means that, although you and your family members are covered by the same health insurance company, you need to have your own Medicare coverage. You might need a different drug prescription than your spouse.

In some cases, if you have a spouse or children, it means you have to pay for their health care claims. Medicare only allows people to sign up as individuals, not as a couple or a family.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes

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