Turning 65 & Medicare
If you’re about to turn age 65 (or know someone who is) it may be time to consider some things that can greatly affect your finances and future healthcare. In the months leading up to your 65th birthday, or in the months immediately following, ( if you’ve been a little slow) you should do the following:
Healthcare Related Matters
- Enroll in Medicare Part A and Part B. Almost everyone age 65 and older is eligible to enroll in Medicare Part A (inpatient care) and Medicare Part B (outpatient care). If you are still working or have Veterans Administration medical coverage you may consider waiting to enroll in Part B. Make sure you speak to an expert to be sure. Once you enroll in Medicare Part B you will have a monthly premium of $99.90 for 2012 (It may be more based on your income). When it comes to enrolling, you may sign up as early as three months before your 65th birthday to ensure that your coverage begins on the first day of the month you turn 65.
- Consider a Medicare Part C managed care plan (Medicare Advantage Plan) Many people age 65 and older enroll in a Medicare Part C Medicare Advantage HMO or other managed care plan. These plans replace and provide broader coverage than traditional Medicare Parts A and B, usually replacing deductibles and co-insurance with co-pays and lower out of pocket costs. They are typically cheaper than the combination of regular Medicare plus a private Medigap supplemental insurance policy, but they limit the health providers you may use. Some of these plans include HMO’s, and PPO’s. Many Part C plans also include prescription drug coverage.
- Consider a Medicare Part D prescription drug plan. The high cost of prescription drugs leads the majority of people age 65 and over to enroll in a Medicare Part D prescription drug plan, which help to provide some reduction in yearly drug costs.
Shop for a Medigap insurance policy to supplement Medicare. If you don’t like the idea of Medicare Part C (a Medicare Advantage plan) a Medicare Supplement is a great option. Medicare leaves unpaid a large portion of most people’s medical bills. To fill in the gaps in Medicare payments, many people buy a private Medigap supplemental insurance policy. These plans will allow you to see any doctor or go to any hospitals that accept Medicare. Your right to buy the policy of your choice without any health questions only lasts until six months after you enroll in Medicare Part B. As with any Medicare plans, there are always a few exceptions to this enrollment time period and an Expert in Utah Medicare Plans can help you wade through your choices.
Legal and Money Matters
- Consider long-term care insurance. A private long-term care insurance policy can help pay for long-term home care or residence in an assisted-living facility or nursing home — two things that Medicare doesn’t cover. The policies can be expensive, however, and are something of a financial gamble. If you haven’t bought long-term care insurance but think you might be interested, now — when you’re in your mid-60s — is the last age at which buying a new policy is affordable for most people. This is very important to look at if you have significant assets as a way of protecting them.
- Plan your Social Security benefits claim. Age 66 is now Social Security’s “full retirement age” — when you can claim your full Social Security retirement benefits without any penalty for continuing to earn an income. There have been recent conversations about raising the age of “full” social security in recent years. Some people will claim reduced benefits as early as age 62, while others wait until after full retirement age (up to age 70) to claim higher benefits. Deciding when it’s best for you to claim Social Security benefits for yourself, your dependents, and your survivors takes a little planning. Make sure you speak with your financial professional to ensure you make the right decision for you and your family.
- Find out about extra help if you have low income and few assets. There is both full medical coverage and direct financial help available to people 65 and over who have low income and few assets other than their homes. Medicaid can pay the full cost not only for medical care but also for long-term home care and nursing home residence. Supplemental Security Income can provide small monthly cash assistance in addition to Social Security benefits. You can contact your local Social Security office with any additional questions.
Get your legal documents in order. Although most 65-year-olds still have many years to live, a sudden illness or accident could make decision making difficult if not impossible. Getting legal documents in order can make sure your wishes are followed with regard to healthcare, including end-of-life care, your ongoing finances, and your estate. These documents include a will, a power of attorney for finances, and an advance medical directive (also called a living will).
Look at Life Insurance or Pre-Need funeral Plans. While you are planning for all the financial aspects of your future, and looking to protect your family, make sure you consider looking at something in order to help with any final expenses that may occur upon your death. Whether you pre-plan through a local funeral home, save up the money in a separate account, or buy traditional whole life final expense insurance, you will want to be protected. The average funeral and burial today runs around $10,000 in Utah and much higher elsewhere. There are many low cost alternatives to help you plan for this situation.
In conclusion, there are many things you get to take into consideration when you are turning 65. We always suggest you speak with reliable and reputable resources including the Social Security Administration, Medicare, and a local expert Utah Medicare agent who knows all the available plans and is willing to give you free no obligation advice.