Spend your Medicare Dollars Wisely
When I have someone call and tell me they are about to reach age 65 the first thing I say is , congratulations you made it! Just as one is to be congratulated on turning age 65 I also encourage them to seek to spend their dollars wisely when it comes to Medicare. The first step to spending wisely is to understand your potential expense. Quite naturally a follow-up question is asked, “Ted what do you mean?” My response always is “know your fixed and your variable Medicare Cost”.
Your Fixed Cost
With Medicare you will have a fixed cost. This is the cost for Medicare Part B (Medical Insurance) and Medicare Part D (Prescription Drug). All tax paying Americans receive Part A (Hospital Insurance) when they turn age 65. Also included in your fixed cost (should you elect) is the cost of a Medicare Supplement or Medicare Advantage Plan. The cost for Part A and Part D is income driven. It is important to understand and take the time to research what your potential cost will be. I have had many conversations with individuals that were surprised when they received a bill for a much higher cost for Medicare Part B and Part D then they expected. For further understanding of hard cost you can go to www.Medicare.gov and click “Your Medicare Costs”
Your Variable Cost
We define variable cost as being the cost of your medical care. This may come in the form of office visit copayments, prescription drug copayments and various deductibles. If you never go to the doctors, do not take prescription drugs and have no medical issues throughout the year you will have zero variable cost. However if you do seek medical care you will want to limit this expense. Most of our clients decide to limit these expenses by purchasing a Medicare Supplement .Purchasing the right Medicare Supplement could provide that 100% of all charges generate by a Medicare provider and are Medicare approved would be paid by Medicare and your Medicare Supplement.