Understanding Your Medical Insurance

Posted on: 1 March 2023

If you'll soon be 65, it's a good idea to start learning about your medical insurance options now. You may need help from Medicare or an insurance agent to find out the best coverage for your situation. Here's a look at three possible ways to get medical insurance when you turn 65.

1. Keep Your Employer's Insurance

In some situations, you might be able to continue with your employer's insurance even after you turn 65 as long as you're still working full-time. However, your employer may have the right to require you to switch to Medicare as soon as you're eligible. You'll need to talk to your HR department to find out what you need to do once you reach 65, and when you should fill out the paperwork if you need to make the switch to Medicare.

Also, it's possible to keep your employer's insurance and also have Medicare. Medicare part A doesn't cost anything, so you might want to sign up for it too. Medicare B has a monthly fee. However, if you don't sign up for it as soon as you're eligible, you might have to pay a higher rate as a penalty when you sign up later. You may want to talk to a Medicare representative to clear up questions about penalties for keeping your employer's insurance and delaying enrolling in all parts of Medicare as soon as you're eligible.

2. Sign Up For Medicare

You can drop your employer's insurance and receive Medicare coverage if you prefer once you're 65. You'll need part A, which is for hospital coverage, and part B, which is for doctor's visits. You may also want part D for drug coverage. Part A is the only free coverage. You'll have to pay monthly for parts B and D. You can have the payments taken out of your Social Security check once you start receiving it. Before then, you'll need to make the monthly payments yourself.

You can also consider a Medicare supplement plan that will pay some of the costs that Medicare doesn't cover. Medicare doesn't cover all of your medical expenses, so a supplement plan could be a financial help, but you have to pay for this plan monthly too.

3. Get A Medicare Advantage Plan

A Medicare Advantage plan is different from a supplement plan. Medicare Advantage plans are separate insurance plans offered by different insurance companies. They take the place of Medicare parts A, B, and D. The plan pays your medical bills, and then Medicare pays the insurance company, so you don't need to use Medicare directly at all.

Terms vary according to the insurance provider. You might want to attend informational meetings held by the insurance companies to understand how a Medicare Advantage plan would benefit you more than plain Medicare.

An Advantage plan might have additional perks and offer lower copays than Medicare, but you'll need to compare all the terms and then think about your medical conditions to see what type of medical insurance would be right for you. 

For more info about Medicare Advantage plans, contact a local company.