New to Medicare? You Should Know…

Medicare is federally run health insurance. It is specifically designed for individuals who are at least 65 years old, as well as people who have End-Stage Renal Disease or who are under 65 with certain disabilities.

Medicare generally has 4 elements: Part A , which represents your hospital insurance, Part B, your medical insurance, Part D, prescription drug coverage plans, and Part C, Medicare Advantage Plans. Part C, of course, can include Parts A, B, and D.

If you’ve been paying into Medicare while working, you are likely eligible to be automatically enrolled in Parts A and B at age 65. In most cases, if you are automatically enrolled in Part A, you don’t need to pay a premium. Part B, however, usually does require a standard, monthly fee.

If you require prescription medication, or think you may in the future, the best time to sign up for Part D is when you are first eligible; three months before to three months after you turn 65. If you wait, you may be required pay a late enrollment penalty. Because there are a number of options in prescription drug plans, consider the available coverage and potential costs of each.

Finally, you’ll need to decide whether you want the Original Medicare Plan or a Medicare Advantage Plan, such as an HMO or PPO. Many Medicare Advantage Plans may charge extra fees but cover a number of additional benefits, such as vision and dental.

By understanding the four parts involved in Medicare, you can ensure you have the coverage you require. Your Medicare plan, through careful, informed decision making, can help you meet your healthcare needs, both now and in the future.