GETTING STARTED
What Medicare plan is best? 5 tips on how to choose, enroll
As great as Medicare is, choosing the right plan can be a daunting task. For starters, there’s a whole glossary of terms you’ll need to learn. Medicare Advantage, Medicap, Part B, Part D — what does it all mean? And more importantly, how do these things affect your health care and out-of-pocket costs?
Fortunately, some research can do a lot to ease the pressure. Here are five tips to help you decide what Medicare plan is best for your needs:
1. Consider the timing
Timing plays a key role in signing up for a Medicare plan.
Many people must enroll during the Initial Enrollment Period — the seven months around your 65th birthday.
If you don't enroll at that time, you’re facing penalties and lapses in coverage.
Of course, if you’re still employed/working, you may not need to enroll.
An employer group health plan can serve as the primary carrier over Medicare.
2. Do your research
There are two main types of Medicare plans: Original Medicare and Medicare Advantage.
Original Medicare isa fee-for-service, governmentprovided plan. It consists of Part A (hospital insurance) and Part B (medical insurance). You can also sign up for Part D (prescription drug coverage) and Medigap (specific benefits).
Medicare Advantage is a plan offered by private companies that contract with Medicare. Medicare Advantage plans include Plan A and B coverages.
You can set them up as fee-for-service, HMO, PPO, and more.
3. Review drug coverage
Many Medicare eligibles overpay for their Medicare plan by hundreds of dollars.
Why is that?
It’s simple: they don’t consider their prescription drug coverage when researching plans.
Every year, Medicare plans cause certain drugs to fall into different payment tiers.
Carefully check your plan’s formulary on an annual basis to review your coverage and choose the best prices.
The website Medicare. gov has helpful price comparison tools as well.
4. Choose the right plan
If you’re new to Medicare, you'll first need to choose between the Original and Advantage plans.
Both of them have clear pros and cons, including monthly premiums, quality, out-of-pocket costs, and so on.
These plans are very different, so make sure you understand what's at stake.
If you can’t reach a decision, consider consulting a Medicare expert. They’ll look at your insurance and help you pick the best Medicare plan for your needs.
5. You’re ready to enroll
Once you know which plan you’re going for, all that’s left is to enroll.
You can do so by going to the official ssa.gov site, calling Social Security, or visiting your local Social Security office.
You’ll also need to decide who will help you choose your plan. You can opt for an insurance broker or the insurance company directly. This doesn’t affect Medicare premiums, but the other plans may vary among companies.
Check Medicare.gov for helpful price comparison tools as well.