As part of our wealth and tax planning, we work with people on healthcare and long-term care options. Many of the questions we get involve Medicare, which isn’t surprising because it can be pretty confusing. Today we’ll explain the basics of the program and then identify seven key mistakes that people make with Medicare.
Retirees have plenty of important decisions to make but few could impact you over time like your health insurance. Like every other aspect of wealth and tax planning, you need to have a plan before you make any decisions on your future.
That’s where an advisor comes in. We get questions all the time about Medicare as pre-retirees and retirees start evaluating their options to determine which path they want to take. Through that process, we’ve seen where the confusion lies and what mistakes are commonly made.
On this episode of the MLN Money Secrets podcast, we’ll identify the seven deadly mistakes that people make with Medicare so you can avoid the same missteps. To help us with that, we’ve brought on Mike Parenti, a member of our team who specializes in this area.
The first thing you need to understand before this discussion even begins is what exactly is Medicare. This program offers health insurance to seniors over 65 years of age who have worked at least 10 years and contributed via payroll taxes to Medicare. Most people will qualify for this program, which is why this discussion impacts so many people.
Now let’s turn our attention to where the mistakes happen. Many of them will occur be-cause of a lack of understanding. There’s not a lot of education on this program and it’s not always easy to get answers. The goal for the show is to provide the information you need to make the best decision for your healthcare.
Some of the things we’ll talk about what the program covers, the different enrollment periods, out-of-pocket expenses, medication coverage, pre-existing conditions, and the different plans. We’ll identify these critical areas of Medicare and help you understand why mistakes are made.
Listen to the full episode or use the timestamps below to find a specific segment.
1:24 – How does Medicare work?
3:48 – How advantage plans started
5:00 – Understanding what Medicare will cover
6:14 – None of the supplements cover long-term care
6:41 – If I drop/change a Plan F Supplemental, can I get it back?
7:53 – The 3 enrollment periods
8:36 – Part D prescription plan covering all medication?
9:35 – No out-of-pocket expenses
11:43 – The premiums are taken out of my Social Security benefits
12:33 – Pre-existing conditions
13:21 – Are you sacrificing care for not paying out-of-pocket expenses?
15:06 – Getting plans online vs using a broker
16:54 – Next steps if you want a Medicare evaluation