Nearly 65? Time for the Medicare Maze
The New York Times, October 14th, 2009
NOW that you’re about to retire, there’s good news and bad news about your
health insurance. The good news: When you turn 65, you’re eligible for
Medicare
— all in all, a pretty affordable way to get coverage for doctor bills,
hospitalizations and, more recently, prescription drugs. The bad news:
You’ve got a big job ahead of you, sorting through the Medicare
bureaucracy.
For someone new to the system, the hundreds of options Medicare
provides can be daunting. “We’ve seen C.P.A.’s get stymied,” said Paul
Gada, personal financial planning director at Allsup, a provider of Social Security
and Medicare consultation services that is based in Belleville, Ill.
“The process can be difficult for even the most savvy individuals.”
More important, the choices you make now as a new retiree may have
consequences down the line when your health care and financial needs
change. Confusing as Medicare may be, it is better to learn the ins and
outs of the system early than to try to figure it out 20 years from
now. The newly eligible have a seven-month period to enroll, starting
three months before their 65th birthday. And numerous resources are
available to help both newcomers and veteran Medicare users.
Not
long ago, retirees simply went to their local Social Security office
and signed up for Medicare A, which covers hospitalization, skilled
nursing facilities, hospice
and some home health care. Then they signed up for Medicare B, which
provides coverage for doctor’s fees for a premium ($96.40 a month in
2009). That was the end of it.
Big changes in the way Medicare
is distributed have made signing up a lot more complicated. In addition
to A and B, enrollees can now buy prescription drug coverage under
Medicare D. Dozens of private insurance plans offer Medicare D coverage, and the plans can differ widely in both premium costs and the drugs they cover.
The government also allowed private insurers to offer Medicare
Advantage plans, which combine A, B and D benefits, often under a
network like an H.M.O. or P.P.O. Many offer extras like dental, vision
and wellness coverage. Hundreds of different Medicare Advantage plans
are sold today, and depending on where you live, you could have dozens
of choices.
Read more of this article.Supplemental Medicare Insurance: work with a pre-screened insurer
to find the right Medicare Advantage program for you and your medical
needs.About Reverse Mortgages: Learn all about reverse mortgages at NewRetirement.com
Professional Financial Advisers: Find out what a financial adviser can do for you at NewRetirement.com.