Medicare A & B and Ways to Cut Costs!

Medicare is a very important health insurance program for older Americans and some others.

There are two main parts of Medicare - Part A and Part B. Part A helps pay for super serious stuff like hospital stays, nursing homes, and hospice care. Most people don't have to pay extra money each month for Part A because of their job or a family member's job in the past. But you still have to pay some money if you need to stay in the hospital for a long time.

Part B covers things like doctor visits, tests you get as an outpatient, medical equipment, and checkups to keep you healthy. You do have to pay a monthly fee for Part B though, which is about $170 right now. There's also a $200 fee you have to pay each year before Part B starts helping. And usually, Part B pays for 80% of the costs, while you have to pay the other 20%.

When you retire, Medicare can seem really confusing with all the options. But knowing what Parts A and B cover can help you understand what to expect. Our company benefits try to help pay for some of the costs that Medicare doesn't. Recently, I saw that a retiring employee's Part B premium was $0. Typically it's $170 but for those with low incomes, Medicare costs can be fully covered. Through our discussion, I learned this individual qualified for extra help under Medicaid due to meeting certain financial thresholds. It was good to see them gain valuable savings from this assistance program for limited budgets.

It's also important to learn about Medicare deadlines. You can get in trouble if you wait too long to sign up for Part B after you're first allowed to. Extra plans like Medigap help fill the gaps in Medicare but cost extra money each month too.

In summary, Medicare provides some coverage but doesn't pay for everything. That's why looking at benefits from old jobs, Medicaid if you qualify, and other extra plans can help give you better protection from medical costs when you retire. Let me know if any part of Medicare is still confusing!