Preparing for retirement (and the associated medical costs) can be somewhat challenging because there's just so much to think about. If you're nearing retirement age, but you're still working, now's the time to start thinking about your next steps. But if you haven't figured out exactly how to set yourself up for retirement success, don't worry. A lot of people are in the same boat as you and it's not too late to start planning how you'll cover medical costs. Take a look at a few things to consider as you get started.
What Is Medicare?
By now, you've undoubtedly heard about Medicare in all of its many forms. But even so, you might still be a little confused as to what Medicare is and all of the parts that come along with it. Medicare is a federal health insurance program available for people age 65 or older, younger people with disabilities and people with End Stage Renal Disease (permanent kidney failure requiring dialysis or transplant). This type of health insurance is paid for by a combination of payroll taxes, the government, and monthly premiums enrollees are required to pay.
Best Ways To Stay Covered With Insurance
To ensure you stay covered with insurance, make sure to keep track of important dates, such as when it's time to apply for Medicare. You have a seven-month window to apply for Medicare, which is referred to as the Initial Enrollment Period (IEP). That means you can apply three months before you turn 65, the month you turn 65, or three months after you turn 65. If you're 65+ and want Medicare but didn't sign up when you were first eligible, you can sign up for Part A and/or Part B during the General Enrollment Period between January 1–March 31 each year if you meet certain criteria.
What Supplements Do You Need?
Once you're enrolled in Original Medicare, you can start thinking about which supplements you need to ensure you're fully covered. First, you should know that there are four different parts of Medicare: Part A, Part B, Part C, and Part D. Basically, Part A is for inpatient and hospital coverage. Part B is for outpatient and medical coverage. Part C is an alternative way to receive Medicare benefits. Part D covers your prescription drugs. Many Medicare beneficiaries choose to receive Parts A and B through Original Medicare directly through the federal government. Part C plans, often called Medicare Advantage plans, are offered by private companies approved by Medicare. These plans cover both A and B parts, and generally offer extra coverage, such as vision, hearing, dental, prescriptions (Part D) and/or health and wellness programs.
How To Prepare For Retirement At A Later Time
While some people have been preparing for retirement for years, others aren't ready for retirement at age 65, and that's OK. There are still ways to get set up for retirement in advance and Anthem is a great resource to get started with. It can help you understand what you'll need to apply for Medicare, how to apply for Original Medicare (Parts A and B), how to sign up for a Medicare Advantage plan (Parts C or D), and give a more detailed explanation of what each part covers.
If you're still working past the age of 65, getting adequate medical coverage can help you stay safe and secure by giving the peace of mind knowing you'll be taken care of in the event that something happens.
Planning for retirement and the medical costs that come along with it doesn't have to be difficult. With the knowledge and resources mentioned above, you can feel confident that you'll be well equipped to make the right decisions regarding your healthcare coverage. Take the above information and let it guide you toward making the choices that are right for you.