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Making Retirement Plans with the Family

If you choose an MA plan and want to cover prescription drugs, make sure it offers it if you want it. Most people sign up for A, B and D, with many also adding Medigap coverage.

Medicare supplemental plans and Medigap plans can help you pay for health care costs that Medicare Part A and B don’t cover. If you decide to return to work after retirement and are eligible for group health insurance, Medicare will work for you. Since Medicare typically pays for other benefits first, and then for Medicare, there is a chance that an available pension plan will require you to have a check before signing up.

You can choose to buy a Medicare supplemental plan from a private insurance company, but it does not offer prescription drug coverage. If the PEBB program does not offer a Part D plan, you may have to buy it on the open market.

If you want help paying for expenses that are not covered by original Medicare, you can take out a Medicare supplement insurance plan, also known as Medigap. Medigap insurance is also available from private insurance companies, and is designed to supplement your original Medicare coverage. Once you have selected a plan and received a prescription and have access to the Medicare Part D prescription drug coverage program, sign up for Medicare Part D. If you get the prescription but have other health problems, such as heart disease, diabetes, cancer or other chronic conditions, then you can also sign up for Medicare Part D.

If you would prefer to sign up for an insurance plan that includes Medicare Part D prescription drug coverage and other benefits, you may want to get a Medicare Advantage plan, according to the American Medical Association.

Monthly premiums vary for each plan, but are typically more costly – effectively once you are eligible for Medicare. If your Medicare Advantage plan already includes prescription coverage, you can add Part D coverage to your insurance at no additional cost. Medicare plan premiums vary depending on the plan and insurance company you choose, and monthly premiums may vary depending on the plan.

Aside from Medicare, you might want to consider supplemental insurance, also known as Medigap insurance. These plans offered by private insurers are designed to help cover your costs in the event of a medical emergency such as a heart attack, stroke or other medical condition.

If you join a Medicare Advantage plan, you will continue to pay your monthly Medicare Part B premium for the rest of your life, even after your retirement age.

If you choose Medicare Part C to ensure Medicare coverage, you should familiarize yourself with the plan options available to you before choosing the health insurance that best suits your needs. Prescription drugs are optional, but you can get them if you are enrolled in a Medicare Advantage plan with a prescription drug plan, such as the Family Health Insurance Plan. Make sure you don’t get Medicare prescription drugs when you first qualify, or you’ll have to pay a penalty for late enrollment.

This means that you will have to wait two years after your IEP to enroll in Medicare Part B, and pay an additional monthly premium of $20 if you behave or have problems in the first year of enrollment.

With limited exceptions, you will have to pay a penalty for late enrollment if you have prescribed Medicare drugs. The difference between eligibility for Medicare Part D and non-enrollment is based on what you disclose each month and whether or not you are enrolled in a Medicare drug prescription plan.

If you are still working at 65 and have sufficient health insurance through your employer, you can defer Medicare Part B because it comes with a monthly premium. You can qualify for a special enrollment period that lasts eight months after you retire or after your employer’s coverage ends.

It is a good idea to ensure that you enroll in Medicare at the time you plan to retire, because you need to bear in mind that if you do not enroll in Medicare on time, you may incur a penalty for not having adequate health insurance coverage. You can avoid the late enrollment penalty by enrolling for Medicaid or Medicare Part F at any time after retirement.

“They want you to think twice before a sniffle visit,” says Danielle Roberts, co-founder of Boomer Benefits, a licensed Medicare insurance broker.

 “The Department urges consumers to review their coverage or select new coverage,” said Indiana Department of Insurance Commissioner Stephen W. Robertson. “If you are over 65 or otherwise eligible for Medicare, now is the time to review your coverage and benefits, and plan for the coming year. If you need assistance, there are SHIP counselors across the state who can assist you.”

If you already had health insurance other than Medicare, ask yourself whether it’s worth the monthly premium costs to sign up for Medicare Part B. As mentioned above, Medicare Hospital Insurance (Part A) is free for almost everyone, but you must pay a monthly fee for your Medicare Health Insurance Part B. For more information on Medicare Health Insurance Part F benefits, see this publication on Medicare.