Erickson Financial Solutions Blog
1-minute video: 5 Important Medicare Facts for Pre Retirees
Medicare and your Retirement.
Large medical bills is one of the greatest threats to financial security especially in retirement. Fortunately, most Americans qualify for some type of insurance. Here, we cover a few points about Medicare for those 65-years or older.
Medicare is govern run program to help seniors cover medical expense after age 65 and has several important and related parts, Parts A, B, C, and D. To be on Medicare you must enroll or you may be subject to stiff rate increases.
Part A Is free and is a form of hospital insurance. Part B covers outpatient care doctor’s visits, and preventative care. This has a premium that is adjusted with income. Part C covers areas of Parts A or B, but by a private insurer. There is a deductible and then a shared cost above the deductible. Prescription drugs cost are offset in Part D. Part D has income related premiums.
Several insurance companies offer plans that cover the cost gaps not covered by Medicare and it various parts.
One crucial fact is that Medicare does not cover lengthy stays for long-term care (LTC) costs. These cost can be very high, are likely to occur, and a prolonged stay in a nursing home facility can readily devastate a retirement.
This is a tricky area which requires expertise, time, and effort to figure out what meets your needs.