Choosing a Medicare Plan that Matches Your Lifestyle and Needs

Understanding Medicare and choosing the right plan can be challenging for many Americans due to its complexities. However, with the right knowledge, first-time Medicare enrollees will be well-equipped to apply during their enrollment period. Plus, if this is not your first time enrolling for Medicare, these insights will also be beneficial if you decide to adjust your Medicare plan.

To help you feel confident during enrollment, we spoke to Ari Parker, Co-Founder and Head of Medicare Advisory at Chapter and author of It’s Not That Complicated: The Three Medicare Decisions to Protect Your Health and Money about the key considerations that 65+-year-olds should make when selecting a Medicare plan.

Understanding Premiums and Fees

High-income earners (single filers who make $103,000 and joint filers who make $206,000) may have to pay a higher premium for Part B (Medical Insurance) and Part D (Medicare drug coverage) called the income-related monthly adjustment amount (IRMAA). The Centers for Medicare & Medicaid Services (CMS) determines this by looking at your tax return from two years prior. However, if you experience a qualifying life change like work stoppage, work reduction, or divorce, you can submit an appeal and have the government look at a more recent year.

Managing Co-insurance Costs

Medicare plans pay 80% of medical costs, leaving you to pay 20% of the rest of the bill. While that may not sound like a lot out-of-pocket, depending on what type of medical procedures you receive, that cost would significantly hurt your finances, especially if you are on a fixed income. To avoid having to pay out of-pocket, you can opt to purchase Medigap Plans A-N.

Expanding Your Coverage

As stated above, if you already have Original Medicare (Plan A and Plan B), you can select Medigap (Medicare Supplement Plan G) to fill in the co-insurance gaps left by Original Medicare. Medigap is also a great option to expand your coverage geographically. This supplemental insurance is especially beneficial if you travel regularly or have a second home as Medigap can also cover international healthcare. It is important to note that these plans are only offered by private companies.

Find out more about how we, along with Chapter can help you select a Medicare plan that fits your needs by watching the webcast, “Medicare: It’s Not That Complicated!”.

Additionally, please reach out to us if you have any other questions regarding Medicare and enrollment.

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