A Quick Guide to Healthcare After Your Retirement

Julia Carlson |

Sharpen your pencil and prepare to embark on a quest to understand healthcare after retirement. Navigating this landscape can be tricky, so let’s break it down.

Understand Your Medicare Coverage

Medicare is the primary health insurance for most Americans aged 65 and older. However, it's crucial to understand that it doesn't cover everything. Here's a quick breakdown of the four general parts of Medicare:

  • Plan A (hospital) covers inpatient care, skilled nursing, hospice, and some home health.
  • Plan B (medical) covers outpatient visits, home health, preventive care, tests, and some equipment.
  • Plan C (Medicare Advantage) includes bundles of parts A and B, often with D, plus extras like vision and dental coverage.
  • Plan D (prescription drug) covers prescriptions.

You may be automatically enrolled in Plan A with Social Security but do not forget to sign up for Part B during your enrollment period. Your Initial Enrollment Period (IEP) lasts for 7 months: the 3 months before your 65th birthday month, your birthday month, and the 3 months after your birthday month. Signing up during this period avoids late enrollment penalties.

Optionally, there are 10 Medigap, or Medicare supplement, plans (A, B, C, D, F, G, K, L, M and N) that can help cover deductibles, copays, dental, vision, hearing aids, and gym memberships.

You’ll want to make sure you have the coverage you need before you need it. You can find out more at the Medicare website: https://www.medicare.gov/

Beyond Medicare: The Long-Term Care Landscape

When daily living activities become tricky due to age or illness, long-term care steps in. But traditional Medicare doesn't cover this, and the costs can be astronomical. That's where long-term care insurance can help manage the financial burden of long-term care.

Building Your Financial Safety Net

Before you retire, here are some steps you can take to prepare for your future healthcare expenses:

  • Build an emergency fund to help cover 6-12 months of living expenses.
  • Health savings accounts (HSAs) contribute tax-free dollars to cover qualified medical expenses, if available through your workplace health plan.
  • Life insurance can provide financial security for your loved ones in case of your death.
  • Find an advocate to help you navigate this complex healthcare system.

Don't leave your post-retirement healthcare to chance. Research your options, plan, and make informed decisions. You have a wealth of resources at your fingertips, from the Medicare website to seasoned healthcare professionals and skilled financial coaches. They're ready to empower you to navigate this important transition with confidence.

Information in this material is for general information only and not intended as investment, tax, or legal advice. Please consult the appropriate professionals for specific information regarding your individual situation prior to making any financial decision.

Email me your questions at info@financialfreedomwmg.com or call/text (458) 777-4458.  You can also post your question on our Facebook page: https://www.facebook.com/FinancialFreedomWealthManagementGroup or find us on Instagram @financialfreedomwmg.