As you approach age 65, understanding Medicare can feel overwhelming. With various parts, enrollment rules, and coverage options, retirees and pre-retirees share similar questions. Here are answers to some of the most frequently asked questions about Medicare.
When should I sign up for Medicare?
The initial enrollment period starts three months before your 65th birthday and continues for seven months. If you’re still working and have employer coverage, you might be able to delay enrollment without penalties.
What are Medicare Parts A, B, C, and D?
Medicare is divided into four parts:
Part A covers hospital care.
Part B covers doctor visits and outpatient care.
Part C (Medicare Advantage) is an alternative to Parts A and B offered by private insurers, often including extra benefits.
Part D provides prescription drug coverage.
What does Medicare cover, and what doesn’t it cover?
While Medicare covers a wide range of medical services, such as hospital stays and doctor visits, it does not cover routine dental, vision, hearing aids, or long-term care.
How much does Medicare cost?
Most people don’t pay a premium for Part A, but Part B has a standard premium ($174.70 in 2024), and Part D costs vary by plan. There are also deductibles and copayments.
Do I need a Medigap or Medicare Advantage plan?
Medigap supplements Original Medicare by covering out-of-pocket costs, while Medicare Advantage offers an all-in-one alternative with additional benefits. The right choice depends on your healthcare needs and budget.
What if I’m still working at 65?
If you have employer coverage, you may delay Medicare enrollment. Check with your employer to see how your insurance works with Medicare.
Medicare can be complex, but with a basic understanding of these common questions, you can approach the decision-making process with confidence. Always review your options annually to ensure you’re getting the best coverage for your needs.
