Planning for medicare can be challenging, especially in your retirement years. The transition from health insurance from employer to medicare can be overwhelming for many. This can even take a toll on your wallet. In order to make the most of your medicare, here are a few tricks that can come handy.
Understand Your Medicare Options
The first thing you need to do is study your medicare options and see what suits you best. This will depend on your health requirements and the premium you are willing to pay. Here are the different medicare options available:
- Medicare parts A & B (original medicare)
- Original medicare with a medigap policy
- Original medicare with a drug plan
- Original medicare with medigap and a drug plan
- Medicare advantage plan with drug coverage
Estimate Your Medicare Expenses
A great way to plan for medicare is to predict all kinds of costs for the rest of your life. This, of course, may not be an exact figure but it will help you estimate the amount of money you may have to set aside. You could use an online calculator to get an estimate of your predicted out of pocket medicare costs. Remember, projecting your expenses will only make planning easier.
Find Medicare-Approved Doctors & Hospitals
Search tools on medicare.gov can help you locate and compare doctors and specialists, hospitals and nursing homes, dialysis and rehab facilities that are covered under medicare plans. Shortlisting such doctors and hospitals in your area can help you prepare in advance, for medical emergencies.
Plan for Inflation
According to a study by the Centers of Medicare and Medicaid Services (CMS), healthcare cost inflation grows faster than general economic inflation. Out of pocket medicare costs have been predicted to grow at a rate of 5% annually. Hence, it becomes pivotal to consider the rate of inflation when projecting healthcare costs.
Improve Your Health
Get the basics right – eat well and exercise regularly. The healthier you are, the less you will need to spend on healthcare expenses and doctor visits. Improving your physical health will also result in better mental and emotional health, which can be crucial during your retirement years.
Don’t Miss Deadlines
Another way to save up on penalties and extra charges is by renewing your healthcare plans on time. Put a reminder alarm on your phone to pay premiums on time.
