If you’re nearing retirement, you may be worried about covering the cost of healthcare. It’s estimated that the average 65-year-old male will spend a whopping $143,000 on healthcare throughout retirement, as per Fidelity, while the average 65-year-old woman is looking at $157,000. And a big part of that stems from the unavoidable costs you’ll incur under Medicare.
Contrary to what you may have been led to believe, Medicare is by no means free (though Part A, which covers hospital care, is generally free for enrollees). As such, it pays to do whatever you can to reduce your costs under it. Here are some steps you can take to save on Medicare — and keep more of your retirement income and savings for yourself.
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1. Enroll on time
Your initial Medicare enrollment window begins three months before the month of your 65th birthday, and it ends three months after that month. So all told, you get seven months to enroll.
If you don’t sign up on time, you’ll risk surcharges on your Part B premiums for going too long without coverage, so it’s important to avoid that trap. If you’re still working at age 65 and have access to a group health plan, worry not — you’ll have a chance to enroll later on and avoid that penalty. But otherwise, pay attention to your enrollment window to avoid higher Part B costs on a lifetime basis.
2. Choose the right drug plan
If you’re sticking with original Medicare, you’ll need a Part D drug plan. And the choice you make in that regard could have you paying less than you would for another plan.
That said, don’t just choose the drug plan with the lowest premium. Rather, do your research to figure out which plan offers the best coverage for the medications you take.
All Part D plans group drugs into tiers that dictate how much you pay for them. Pay attention to where your specific medications fall so you don’t get stuck with a massive out-of-pocket bill.
3. Consider an Advantage plan
Medicare Advantage is an alternative to original Medicare that could end up being a more cost-efficient choice for you. As is the case with Part D, there are different plans you can choose from, so you’ll need to do your research and figure out what makes the most sense.
One benefit of signing up for an Advantage plan is that you’ll typically get coverage for services like dental care, eye exams, …….
