When it comes to retirement planning, it is critically important to understand the options available and their individual nuances. Just because there is a standard plan it doesn’t mean it will work for you or your personal situation. The reason there are options and different plans is because everyone has individual needs that can’t be met by just one plan or option.
Most of us understand that after years of work we have paid into a system designed to help us when we retire, according to an article in newsok.com “The ABCs (And D’s) of Medicare and other retirement questions answered.” However, the details of what you’re supposed to do and when can be a little overwhelming.
Both Social Security and Medicare programs don’t kick in automatically. They require recipients to take action. These systems may have started out simple but today they are complex and can be difficult to navigate.
Medicare, Part A, also called original Medicare, is managed by Medicare and provides Medicare benefits and coverage for inpatient hospital care, inpatient stays in most skilled nursing facilities and hospice and home care services.
Part B is also managed by Medicare and provides Medicare benefits for doctors and clinical lab services, outpatient and preventive care, home health care, screenings, surgical fees and supplies and physical and occupational therapy.
Medicare Part C, also known as Medicare Advantage, is a different way of receiving Medicare Part A and Part B coverage. Medicare Advantage Plans combine Part A and B together in one plan. They can also be combined with Part D prescription drug coverage, which is then considered a Medicare Advantage Prescription Drug (MA-PD) plan.
Those plans are offered as a stand-alone plan known as Medicare Part D Prescription Drug Plan (PDP) or can be combined with a Medicare Advantage Plan, also called a Medicare Advantage Prescription Drug (MA-PD) Plan. Part D plans help cover the cost of prescriptions, helping to lower some prescription costs and protecting against higher costs in the future.
And while understanding these plans can be difficult, you also have to be aware of the deadlines. There are deadlines that must be met for each plan or certain costs can become higher. It is important to get some advice and input on your particular situation before making any decisions.
Getting up to speed on all these systems before you have to make a decision is the best way to prepare yourself. You’ll want the coverage that works best for your individual situation. Bear in mind that if you go the cheaper route in some of your choices, you may end up paying more over the long run. Be open to getting help from good sources, including your estate planning attorney, and be wary of sales pitches. There are lots of people willing to sell you something you don’t need or want.