When you reach retirement age, you find there are many changes coming your way. Instead of spending most of your week at work, you now have an abundance of free time. Your social interactions change dramatically as you may now spend most of your time with your spouse instead of with everyone you used to work with before. You’ll have a lot more time for hobbies and can really enjoy your freedom now. It’s important to take the time to work through this transition and put everything in place for this new phase of your life.
For many there’s also less money coming in so you’ll have to be sure to take care of your finances. One of the things you’ll need to do is make sure you have adequate and affordable health care coverage. You’ll be part of the Medicare system now. Unless you are proactive and sign up for a supplement plan, though, you may find that you lack the coverage you need. You may be exposed to potential financial risk from items that are not covered or paid through original Medicare.
Medigap vs Medicare Advantage Plans
It can take a while to understand all of the options and nuances associated with the available supplement plans. You’ll want to make sure that you talk to an insurance broker who specializes in medicare supplements and can help educate you about the best options and the key choices you have to make.
Basically, supplement policies take the form of either Medigap or Medicare Advantage plans. Medigap forms of coverage help pay out of pocket expenses that are not covered by original Medicare, and also give you access to more doctors. A Medicare Advantage plan generally has a lower premium and offers additional benefits, but has a more restricted doctor network.
More Information About Medigap Plans
With Medicare you will have significant out-of-pocket costs that are associated with the required deductibles and coinsurance or co-pays. To reduce financial risk or to make sure you have more coverage in the event of poor health, consumers can choose to purchase one of the many Medigap plans available. There are some 10 types of plans available, all starting with a different letter.
Medigap provides a financial safety net that can protect you against catastrophic costs that might be incurred if you have a serious illness or chronic condition. The coverage benefits kick in to reduce the financial obligation that exists when Part A only pays for a set number of days of inpatient care, or Part B only covers 80 percent of necessary medical expenses.
Additional Information About Medicare Advantage Options
With these plans, you get the benefit of supplemental coverage with premiums that are typically much lower than Medigap options. Financially, you receive some assurance because there is a set limit on how much you could pay out-of-pocket during a year. Many Advantage options also provide some form of vision, dental, hearing or fitness insurance benefits.
Some plans innovate by offering additional features such as wellness packages, medical transportation and even virtual doctor visits. Instead of having to purchase Part D, you’ll find that many Advantage programs also cover prescriptions. Some enrollees also appreciate that with this option they have only one plan and point of contact they have to deal with.
