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A Quick Overview of What to Expect
Medicare is a federal health insurance program generally available to those who are 65 or older or who qualify due to disability. Open Enrollment Period for the 2023 Medicare plan year begins on October 15 and closes on December 7. This is the time of year to join, switch, or drop one of your plans that will impact coverage beginning January 1 of 2023. Let’s cover a couple items to help better understand the Medicare system.
When to enroll? If you’re turning 65 and this is your first time enrolling for Medicare, you have a seven-month period to apply for coverage. That window opens three months before you turn 65, continues through the month of your birthday and the three months following your birthday. If you apply prior to your birthday, your coverage would begin the first day of the month you turn 65. If you file after your birthday, your coverage will begin the first day of the month following the month you applied. If you still have access to a workplace plan, make sure to check with your insurance plan to understand how it coordinates with Medicare. If you fail to enroll for Medicare in time, it can result in a penalty being assessed to your Part B and Part D premiums for your lifetime.
If you’re already enrolled? Each year it is worth re-evaluating your Medicare insurance plan election. The coverages offered change from year to year which, in turn, can change which plan best suits your needs. For those currently in a Medicare Advantage Plan (Part C), there is an open enrollment period from January 1-March 31 where you can switch plans or switch back to original Medicare. We recommend working with a Medicare Insurance Consultant annually to help you shop which plans provide the best coverage for you.
Types of Coverage Offered
Medicare Part A — This is your inpatient hospital coverage that you’ve paid for through Medicare taxes during your working career. Generally, most people do not pay a premium for this coverage.
Medicare Part B — This is your doctors’ services and outpatient medical coverage. There is a wide list of what is covered but generally it includes services provided outside of the hospital with limitations. Your monthly premium rates will be based on your Modified Adjusted Gross Income. Premium information has not been released yet for 2023 so keep an eye out for those numbers in the coming weeks.
Medicare Part D — This is your prescription drug coverage. Expect to pay a surcharge on this coverage if you make more than $91,000 as an individual or are married and file separately, or $182,000 if you are married and file jointly.
Medicare Advantage Plans (Part C) and Medicare Supplemental Insurance (Medigap) — These are two supplemental insurance plans available in addition to your Part B coverage. These plans can provide additional coverage original Medicare does not cover and can ultimately provide a cost savings to the insured.
At ASI Wealth Management, John Bellman believes that before setting out on any great adventure, you need to start with a plan, and the same should go for your finances. To that end, Bellman assists clients with developing holistic financial plans and choosing the right investments to go along.
