Episode 42: What Medicare Covers, and What It’s Going To Cost

Understanding Medicare is an important part of your overall retirement planning, but it’s so confusing and complicated! Even Devin and John struggled to learn all the ins-and-outs.  And now, in this two-episode set, they’re going to help you understand Medicare and how it will impact your retirement planning.

For most people, they’ll become eligible for Medicare when they turn 65, based upon your work record. There are other ways to qualify, such as through Social Security disability.

If you are already receiving Social Security benefits when turn 65, you will be automatically enrolled in Medicare Part A and B, and your Part B premium will automatically deducted from your Social Security benefit payment.  If you’re not receiving Social Security benefits, you’ll need to pay those Medicare Part B premiums until you start drawing Social Security benefits.

What are the different parts of Medicare, and what do they cover?

Part A: Hospitalization coverage

Part B: Doctor’s visits, lab work, x-rays, etc.

Part C: This is your Medigap or supplemental policy

Part D: Prescription drug coverage

Understanding the different parts of Medicare is critical to making the right choices and taking the right steps at the right time.

Highlights include:

  • What is the “hold harmless” provision?  Why are you paying more for Medicare than your parents?
  • Why you need more than Medicare Part A and Part B
  • What happens if you’re still working at 65?
  • How it can still be hard to get care even if you have Medicare
  • Who should sign up for Medicare Part B

Join us again next week as we delve further into Medicare!

Resources mentioned in this episode:

Devin and John’s free ebook:  www.bigpictureretirement.net/steps

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Every month, Devin and John have an entire episode dedicated to answering listener questions.  If you have a question, submit it to questions@bigpictureretirement.net.