If you’re planning to enroll in a Medicare plan this year, you may be wondering what the best plan is.
While there are a number of Medicare plan options to choose from, the best plan for you will depend on your medical and financial situation. Luckily, you can compare the advantages and disadvantages of each Medicare offering to find a plan that works well for you.
Medicare is a government-funded insurance option available to people age 65 or older, as well as individuals receiving disability benefits. When you enroll in Medicare, you can choose from a variety of coverage options.
Medicare Part A
Medicare Part B
Part B covers general medical services, including preventive, diagnostic, and treatment services for health conditions. It also covers emergency room visits and emergency medical transportation costs.
Medicare Part C (Medicare Advantage)
Part C, also known as Medicare Advantage, is offered by private insurance companies. It can cover Part A, Part B, prescription drugs, and additional healthcare services, such as dental and vision care.
Medicare Part D
Part D helps cover prescription drug costs. Private insurance companies offer these plans as an add-on to original Medicare.
Medigap, or Medicare supplemental insurance, helps cover out-of-pocket medical costs and is also used as an add-on to original Medicare.
Finding the best Medicare plan involves choosing a plan that fits all yourmedical and financial needs.
Original Medicare consists of Medicare parts A and B. For many Americans, this covers most necessary medical expenses. However, original Medicare doesn’t cover prescription drugs, vision, dental, or other services.
Medicare Part D
Part D offers additional prescription drug coverage for any medications that aren’t included under original Medicare. A Medicare Advantage plan can take the place of Part D. If you don’t want Medicare Advantage, Part D is a great alternative.
Medigap is a supplemental private insurance option that can help pay for Medicare costs, such as deductibles, copays, and coinsurance.
Medigap isn’t necessarily an alternative to Medicare Advantage but rather, a cost-effective alternative for those who choose not to enroll in Medicare Advantage.
If you’re still wondering what the best Medicare plan is for you or a loved one, consider the advantages and disadvantages of each plan.
Here are some important things to consider when choosing the best Medicare plan for you:
- The type of coverage you already have. Do you have veteran’s benefits or coverage under an employer or spouse’s employer?
- The type of coverage you need. Are you managing any chronic conditions or know that you’ll need a surgical procedure in the near future?
- The prescription drugs you take. Do you take several medications each month or specialty drugs?
- Foreign travel. Do you travel abroad and want emergency coverage overseas?
- How much you can afford to pay for medical care. How much is your income each month? Each year?
If you need help calculating costs for plans in your area, visit Medicare.gov and use their find a plan tool. This can help you compare plan types, costs, coverage, and more.
Important Medicare enrollment deadlines
To ensure that you enroll on time to avoid coverage gaps and late penalties, pay close attention to the following Medicare enrollment periods:
- Your 65th birthday. You can enroll in Medicare any time within the 3 months before or after your 65th birthday.
- Six months following your 65th birthday. If you want to enroll in Medigap, you can do so for up to 6 months after your 65th birthday.
- January 1 to March 31. This is the enrollment period for anyone who didn’t sign up for a Medicare plan when first eligible (although there are penalties for waiting). You can also sign up for a Medicare Advantage plan during this period.
- April 1 to June 30. If you’re interested in adding Part D to your original Medicare plan, you can enroll at this time. However, it’s important that you enroll in a Part D plan as soon as you’re eligible to avoid a permanent late enrollment penalty.
- October 15 to December 7. This is the open enrollment period. During this time, you can enroll in, drop, or change your Medicare Part C or Part D plan.
- Special enrollment period. Under some circumstances, you may qualify for a special enrollment period. During your special enrollment period, you’ll have 8 months to enroll in a plan.
The best Medicare plan is one that covers all your necessary medical and financial needs. There are advantages and disadvantages to each Medicare plan option, ranging from cost-effectiveness to provider limitations, and more.
Whether you choose original Medicare with add-ons or Medicare Advantage, shop around and compare the best Medicare plan for you.