Your Top Questions About Medicare Answered

Medicare can be confusing! The good news is that most people report being satisfied with their health care coverage. But like other types of health insurance, Medicare is complicated and features a wide range of plans, coverage choices, premium levels and enrollment rules. If you are interested in applying for Medicare, your best bet is to contact a financial advisor in NJ who can walk you through your options. 

In the meantime, here are the top six questions we hear from clients, along with our responses. For additional questions or concerns, feel free to contact Leonard Financial Solutions! 
​
1. When can I get Medicare benefits? 

Unless you are disabled, Medicare kicks in at 65 years old. A common misconception is that Americans can get Medicare once they apply for Social Security, which can be as early as 62. But this isn’t true. Even if you retire early, you’ll still have to wait until you are 65 to be eligible for Medicare. 

2. How do I apply for Medicare? 

If you are already receiving Social Security benefits, you don’t have to apply for Medicare. At age 65, you’ll be enrolled automatically in Parts A and B. However, if you’re not receiving Social Security, you’ll have to apply for Medicare. Your initial enrollment period starts three months before your 65th birthday and extends for three months after. 

3. Can you explain what the different “parts” of Medicare are? 

There are four parts of Medicare. It’s important to understand each part so that you can be properly covered. 

- Part A is your hospital insurance that covers hospital stays and some stays in skilled nursing centers.
- Part B is your medical insurance that covers doctors’ visits, lab tests, outpatient procedures and more. 
- Part C is Medicare Advantage - plans offered by private companies to provide Medicare benefits. You’ll still be     enrolled in Medicare, but you’ll have extra coverage like vision, hearing and dental. 
- Part D is your prescription drug coverage. These plans cover both name-brand and generic prescriptions. 

4. How much does Medicare cost?

Medicare A is free for most Americans, though there is a deductible to account for as well as coinsurance for some hospital stays. Medicare B has a monthly premium that varies based on your income as well as a deductible. Part D also has a monthly premium of around $35. You can find updated costs for 2020 here. 

5. Are there things Medicare doesn’t cover? 

Yes, there are healthcare services that Medicare won’t cover. While this is not a complete list, here are some of the things excluded from Medicare:

- Long-term care
- Dental care
- Eye exams
- Glasses 
- Dentures 
- Acupuncture 
- Hearing aids
- Foot care 

6. What is Medigap insurance? Do I need it? 

Since Medicare has many copays and deductibles, private insurers sell Medigap or Medicare Supplemental Insurance Plans. Whether you should get a Medigap plan depends on how much risk you’re willing to take on. 
​
Medicare Parts A and B cover a lot but certainly not everything. A serious illness could cost you a significant amount of money if you only have Medicare. With Medigap insurance, you can set a limit on your medical costs and plan for your health care expenses more accurately. 

If you have additional questions or concerns about Medicare and Medigap insurance, contact Leonard Financial Solutions today!