Hello my name is Chad Taylor Managing Partner with MDT Financial Advisors here in Houston Texas
Are You or someone you know turning 65! This is a big milestone in life, and it also means you'll need to start thinking about Medicare. As a financial advisory practice, we understand that navigating the Medicare system can be daunting, but it's important to get it right so you can maximize your healthcare benefits and minimize your costs. In this video, we'll provide an overview of the different parts of Medicare, and what you need to know as you approach this milestone.
First, let's review what Medicare is. Medicare is a federal health insurance program that is available to people who are 65 or older, as well as certain younger people with disabilities and people with end-stage renal disease. Medicare is divided into several parts, each covering different services.
Part A: Hospital Insurance
Part A covers inpatient hospital stays, skilled nursing facility care, hospice care, and some home health care. If you or your spouse have paid Medicare taxes for at least 10 years, you will typically not have to pay a premium for Part A.
Part B: Medical Insurance
Part B covers doctor visits, outpatient services, preventive care, and medical equipment. You will typically have to pay a monthly premium for Part B, which is based on your income.
Part C: Medicare Advantage Plans
Part C, also known as Medicare Advantage, is an alternative to Original Medicare (Part A and Part B) offered by private insurance companies. These plans must cover all of the same services as Original Medicare, but may also offer additional benefits such as vision, dental, and prescription drug coverage. You will typically have to pay a monthly premium for a Medicare Advantage plan, in addition to your Part B premium.
Part D: Prescription Drug Coverage
Part D covers prescription drugs. You can enroll in a standalone Part D plan, or you can choose a Medicare Advantage plan that includes prescription drug coverage. You will typically have to pay a monthly premium for Part D, and the cost will vary depending on the plan you choose and the medications you take.
As you approach age 65, you will typically have a 7-month initial enrollment period (IEP) to sign up for Medicare. Your IEP includes the three months before the month you turn 65, the month you turn 65, and the three months after the month you turn 65. If you miss your IEP, you may have to pay a penalty when you enroll later.
In addition to your IEP, there are also other enrollment periods throughout the year, such as the annual enrollment period (AEP) and special enrollment periods (SEP). It's important to understand the different enrollment periods and the rules surrounding them, as they can affect your ability to enroll in or change your Medicare coverage.
At our financial advisory practice we understand that Medicare can be confusing and overwhelming. That's why we offer Medicare planning services and to help you navigate the system and make informed decisions about your healthcare coverage. We can help you compare different plans, understand your costs, and make sure you're getting the most out of your benefits.