Many retirees experience a decrease in certain expenses after leaving the workforce, such as housing and transportation costs. However, healthcare expenses often rise, primarily due to age-related health issues and potential gaps in coverage compared to employer-sponsored plans.
To manage Medicare costs effectively, here are three key points to consider:
Enrollment Timing: The initial enrollment period for Medicare lasts seven months, starting three months before your 65th birthday. Delaying enrollment without qualifying coverage could lead to lifelong surcharges on Part B premiums.
Medigap Coverage: Signing up for Medigap (supplemental insurance) within six months of enrolling in Part B can help cover out-of-pocket costs. After this window, you may face higher costs or denial based on health reasons.
Open Enrollment: From October 15 to December 7 each year, existing Medicare enrollees can adjust their plans. It's crucial to evaluate your current coverage and explore other options to potentially lower your medication costs or premiums.
Did you know XML has resources to help you as you plan for your healthcare expenses? By utilizing the proper resources and understanding the points above, retirees can potentially better manage their healthcare expenses. Check out the replay of our Medicare Open Enrollment Webinar here for details on what you need to know during this important enrollment period.
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