The US spends approximately $4.3 trillion annually on healthcare, which includes medical services, procedures, and medications. This accounts for 18.3% of the country's GDP. Medicare is significant in this healthcare expenditure. In 2021, it took up around $900 billion, which is 21% of the total medical spending and 3.8% of the US GDP. (source) It is crucial to understand how we can take advantage of this government-offered program created in 1965, especially for those eligible for its benefits.
To be eligible for Medicare, individuals must be 65 years or older or younger individuals with specific disabilities or conditions.. This means that before reaching the age of 65, we must have medical insurance.
After turning 65, we can choose Medicare and purchase supplements to cover all our medical needs. It is essential to ensure that we have Medicare A (Hospital), B (Medical-Doctor services covers 80% of the cost), D (Prescription Drug), and a supplemental plan like Medigap (Medicare Plan G) or Medicare Advanage to cover all our requirements. According to research, the Medigap program provides better financial protection (covers 20% remaining from Medicate Plan B than Medicare Advantage when dealing with complicated medical conditions and can offer more freedom of choice in medical services. Enrollment is required within six months of turning 65; otherwise, the insurance company will review our medical history before approval.
Medicare provides access to many doctors, and it is essential to ensure that our most important doctors are in Medicare or the Medigap supplement.
Individuals who fall under lower income criteria may be eligible for Medicaid. However, as only some qualify, we will not discuss it further here.
We can save for a Health Savings Account (HSA) as early as possible and invest until we turn 65 to use it tax-free for medical expenses.
To be eligible for Medicare, individuals must be 65 years or older or younger individuals with specific disabilities or conditions.. This means that before reaching the age of 65, we must have medical insurance.
After turning 65, we can choose Medicare and purchase supplements to cover all our medical needs. It is essential to ensure that we have Medicare A (Hospital), B (Medical-Doctor services covers 80% of the cost), D (Prescription Drug), and a supplemental plan like Medigap (Medicare Plan G) or Medicare Advanage to cover all our requirements. According to research, the Medigap program provides better financial protection (covers 20% remaining from Medicate Plan B than Medicare Advantage when dealing with complicated medical conditions and can offer more freedom of choice in medical services. Enrollment is required within six months of turning 65; otherwise, the insurance company will review our medical history before approval.
Medicare provides access to many doctors, and it is essential to ensure that our most important doctors are in Medicare or the Medigap supplement.
Individuals who fall under lower income criteria may be eligible for Medicaid. However, as only some qualify, we will not discuss it further here.
We can save for a Health Savings Account (HSA) as early as possible and invest until we turn 65 to use it tax-free for medical expenses.
When to buy Medigap?
The best time to buy a Medigap policy is during your Medigap Open Enrollment Period, which starts the first month you have Medicare Part B and you are 65 or older and it lasts for six months. During this period, you have guaranteed issue rights, meaning you can't be denied a Medigap policy or charged more due to health problems. If you delay enrolling in Part B because you have coverage through an employer, your Medigap Open Enrollment Period won’t start until you sign up for Part B.
It is important to note that different states have their own enrollment rules for Medicare beneficiaries. For instance, Connecticut and New York allow beneficiaries to purchase a Medigap plan at any time without being denied. Similarly, California, Idaho, Nevada, Oregon, and Washington allow beneficiaries to switch plans at designated times. In California and Oregon, there is a "birthday rule" that permits beneficiaries to switch to a Medigap plan with equal or lesser benefits within 30 days following their birthday each year, without medical underwriting.
The best time to buy a Medigap policy is during your Medigap Open Enrollment Period, which starts the first month you have Medicare Part B and you are 65 or older and it lasts for six months. During this period, you have guaranteed issue rights, meaning you can't be denied a Medigap policy or charged more due to health problems. If you delay enrolling in Part B because you have coverage through an employer, your Medigap Open Enrollment Period won’t start until you sign up for Part B.
It is important to note that different states have their own enrollment rules for Medicare beneficiaries. For instance, Connecticut and New York allow beneficiaries to purchase a Medigap plan at any time without being denied. Similarly, California, Idaho, Nevada, Oregon, and Washington allow beneficiaries to switch plans at designated times. In California and Oregon, there is a "birthday rule" that permits beneficiaries to switch to a Medigap plan with equal or lesser benefits within 30 days following their birthday each year, without medical underwriting.
