Most people turning sixty-five ask themselves “If I am getting Medicare from the government, why are there all these other options for coverage and why would I need them?” When we meet with people, we as agents take the time to answer this question simply and concisely.
Medicare is an insurance program that comes from the federal government. However, there are two major holes in Original Medicare (Parts A and B) coverage.
Original Medicare does not cover any prescription drugs that you would fill at your local pharmacy. However, if you do not pick up drug coverage when you are first eligible for Medicare Part B there is a penalty for not having coverage. This forces you to either buy a stand alone Medicare Part D prescription drug plan or enroll in a Medicare Advantage plan that includes Part D prescription drug coverage.
Original Medicare also leaves people responsible for 20% of any of their medical expenses with no out of pocket maximum for the year. This is the only major type of insurance known to leave you with open ended risk. Insurance is meant to cover risk and Medicare only reduces your risk. 20% of large numbers are large numbers. A hip replacement can cost up to $80,000. 20% of that is $16,000. Don’t be left out in the cold by only having Original Medicare or you could end up owing large medical bills.
The great thing about Medicare and turning 65 is that you only have two choices for coverage. It may seem like more due to the mail and advertisements that you will receive as you get ready to turn 65, but you can either go with a Medicare Supplement Plan (also known as Medigap) or you can choose a Medicare Advantage plan. We will go into why you would choose one plan over another in a future blog. You must make sure that if you go with a Medicare Supplement that you also choose a Medicare Prescription Drug plan also known as Part D. If you choose a Medicare Advantage you must make sure that it includes drug coverage because there are some that only cover medical.
Meeting with one of our agents from Sun Coast Legacy Advisors can help you answer these questions and more. We recommend that if you are getting ready to turn 65 that we get together for our Meet and Greet appointment about 5 to 6 months before you are getting ready to turn 65. We will be able to educate you on your options for coverage and present you with a timeline of key date and benchmarks leading up to starting Medicare at 65.
Turning 65 can be simple and easy. Sun Coast Legacy Advisors is here to help you through the process. Email or Call to schedule your appointment today.