How to Navigate the Medicare Maze

Planning for retirement can be an exciting time that comes with many important decisions: How are you going to spend your free time, where do you plan to live and what’s your retirement savings withdrawal strategy to fund your new activities?

As we approach retirement, one of the most significant pieces of the retirement puzzle is figuring out when to enroll in Medicare, in which parts to enroll, and knowing what is covered.

Here are a few important things to know:

1. You must enroll in Medicare to receive benefits. You are not automatically enrolled. The key month is your birthday month in which you turn 65. There is a three-month window before your birthday in which you can enroll, during your birthday month, or three months after your birthday. This seven-month window is the time for you to enroll. Not enrolling during this time may cause a gap in your coverage and a lifetime late enrollment penalty.
   
2. Conduct an annual checkup on your Medicare coverage. During the Annual Enrollment Period from October 15th through December 7th, review your Medicare coverage with a knowledgeable consultant every year, particularly on the pharmaceutical side, as there are often changes to coverage from year to year.
3. Understand each option and provider when considering Medicare coverage. There are several different ways to combine Medicare coverage choices to ensure your health and budget needs are met.

For those in their early 60s, ask yourself these questions:

• If you continue to work, are you going to enroll in Medicare or continue coverage through your employer’s plan?
• If you enroll in Medicare and have a younger spouse, how will their health insurance be covered?

Your employer’s health-care plan may fit your needs, particularly if you have a spouse who is under 65 and needs health coverage. For others, enrolling in Medicare and leaving your employer plan may be the right answer. Importantly, you can continue to work for your employer
but you could take Medicare at age 65.

“When I’m 64”

A goal that many investors have is saving and investing for retirement. This goal should also include planning for and managing the costs of health care. Don’t go through the Medicare process alone. Let the Beatles’ song serve as a reminder: valuable guidance on selecting a Medicare plan is available.