Medicare

Navigating Medicare can be one of the most complex aspects of retirement, but it's essential for protecting your health and financial well-being. At our firm, we specialize in helping clients understand Medicare's intricacies, optimize coverage to fit their needs, and integrate it seamlessly into their overall financial strategy. 

Whether you're approaching age 65 or already enrolled, our experts guide you through options to minimize out-of-pocket costs and avoid costly penalties.

 

Understanding Medicare Basics

Medicare is a federal health insurance program primarily for individuals aged 65 and older, as well as younger people with certain disabilities or end-stage renal disease. It's divided into several parts, each covering different aspects of healthcare:

  • Part A (Hospital Insurance): Covers inpatient hospital stays, skilled nursing facility care, hospice, and some home health services. Most people don't pay a premium for Part A if they've paid Medicare taxes for at least 10 years.
  • Part B (Medical Insurance): Includes outpatient care, doctor visits, preventive services, and medical supplies. There's a monthly premium (around $174.70 in 2024, subject to income-based adjustments), plus deductibles and coinsurance.
  • Part C (Medicare Advantage): Offered by private insurers approved by Medicare, these plans bundle Parts A, B, and often D, with potential extras like vision, dental, or hearing. They may have lower out-of-pocket costs but restrict you to network providers.
  • Part D (Prescription Drug Coverage): Helps pay for medications through private plans. Premiums vary, and coverage gaps (like the "donut hole") can impact costs—though recent reforms under the Inflation Reduction Act have capped insulin costs and out-of-pocket expenses.

Many clients also consider Medigap (Medicare Supplement Insurance) policies to cover gaps in Original Medicare (Parts A and B), such as deductibles and copays. These are sold by private companies and can provide peace of mind by limiting unexpected expenses. Key Financial Considerations: Medicare isn't free—premiums, deductibles, and copays can add up to thousands annually, especially if you're in a higher income bracket (triggering Income-Related Monthly Adjustment Amounts, or IRMAA). Poor planning might lead to lifelong penalties for late enrollment or gaps in coverage that erode your retirement savings.In our ITEMS approach, Medicare planning intersects with income, tax, and estate strategies. For example:

  • Coordinating Medicare with employer-sponsored health plans or HSAs to maximize tax advantages.
  • Projecting future healthcare costs based on your health history and longevity expectations.
  • Evaluating whether Original Medicare + Medigap or a Medicare Advantage plan better aligns with your budget and lifestyle.

How We Help

Our advisors conduct a personalized Medicare review, including:

  • Enrollment timing: Guiding you through Initial Enrollment Periods, Special Enrollment Periods, and Annual Enrollment to avoid penalties.
  • Plan comparisons: Analyzing options from multiple carriers to find the best value, considering your medications, preferred doctors, and travel habits.
  • Cost projections: Integrating Medicare expenses into your retirement income plan to ensure sustainability.
  • Ongoing support: Monitoring changes in laws (like the 2025 updates to Part D caps) and adjusting your coverage as needed.

Don't leave your healthcare to chance—proper Medicare planning can save you money and provide security in retirement. Contact us today for a complimentary consultation to see how Medicare fits into your ITEMS framework.