As you enter retirement, covering the cost of healthcare will be one of your biggest challenges. You might already know that healthcare costs are currently climbing faster than the inflation rate. And since the rate of inflation is used to determine cost of living adjustments for Social Security benefits, you could potentially end up in a situation where your medical bills are rising, but your income is not keeping pace with expenses.\r
\r
In addition to that problem, life expectancy has increased to that point that most of us will spend twenty years or more in retirement. You might not notice a huge difference in medical bills (and other expenses) from one year to the next, but you can bet that there will be a huge difference between your medical bills in 2016 and your medical bills in 2030!\r
\r
For that reason, many senior citizens are closely examining their Medicare plan options, and making complicated choices between plans, to help manage their out-of-pocket medical spending.\r

\r
• Traditional Medicare is divided into two parts, Part A (hospital insurance) and Part B (medical insurance). Each of these plans covers different medical needs. When you turn 65, you will enroll in Traditional Medicare, unless you choose a Medicare Advantage plan instead.

\r

• Medicare Advantage plans must be approved by Medicare, and offer similar coverage, but are run by private insurance companies such as HMOs and PPOs.

\r

• Medicare Part D is a prescription drug program, and is optional, additional insurance that you can purchase.

\r

• Medicare Supplement Insurance includes plans that Medicare Part A and B members can choose to help manage their out-of-pocket expenses. These plans are regulated by the California Department of Insurance, but will differ somewhat in their offerings.

\r

\r
As you compare Medicare plans, including Supplemental policies, remember that these plans are standardized and regulated by the government. That means each plan in a particular category must provide a certain level of coverage, but benefits can vary from one plan to another. Along with determining which type of coverage is right for you, you will also compare premiums between several different providers.\r
\r
If you feel overwhelmed by the dizzying array of different types of Medicare, don’t worry: We’re here to help you sort through your options. Call us for an appointment, and we can demonstrate the difference between each type of Medicare plan, and help you select a provider for your healthcare policy.