October through December of each year is the open enrollment period for Medicare. Many people aged 65 and older are on auto-pilot and just continue with the plans they have in place without regard for investigating if there are other options that could be more beneficial.
First of all, Medicare is available when you attain the age of 65. In today’s world, many people over 65 are still working and may have benefits through their employer. But, even if you are covered by employer insurance, you must sign up for Medicare or risk being penalized for late enrollment.
Signing up for Medicare or looking at options can be very confusing. First, let us look at the different parts of Medicare: Part A covers hospital stays; Part B covers routine medical costs; Part C is a Medicaid Advantage Plan; and Part D is drug coverage (available as optional coverage).
Medicare Advantage Plans are not your standard Medicare and many people believe that the Advantage system offers a better portfolio of benefits and lower costs. Medicare Advantage plans are administered by private insurance companies while the standard Medicare is administered by the federal government. Medicare Advantage Plans are sold by insurance brokers who receive a commission for selling a plan. The coverage is based on specific areas – geographical, restricted to “in network” providers, include coverage for hospital, medical and, most likely, prescriptions as well as possibly extras such as vision, dental and hearing. However, Medicare Advantage Plans do not provide for services when you are out of your network. There is no coverage outside of the U.S., and no coverage to assist in the cost of your return to the U.S. for treatment.
Original Medicare covers hospitalizations, routine medical services – doctor visits, testing, etc. under Parts A and B. As mentioned above, if you wish to have prescription coverage under Part D, that is optional and available at an additional charge. You can obtain prescription coverage through outside insurance companies. You can add Medicare Supplement Insurance (Medigap) or you can use coverage from a former employer or union or Medicaid (if you qualify for the same). Under Original Medicare, you can use any doctor or hospital that takes Medicare anywhere in the U.S., even if traveling away from home.
So, what do you choose? Only you can be the judge of which plan you become a member of. There are various factors to be considered, including any existing health issues you may have experienced. Do your homework and investigate. Good luck in making the best choice for you. And, who said we don’t have options?