Moving from an employer-sponsored plan to a Medicare plan does not have to be complicated. Money magazine talked with Mercer’s Kristin Parker and came up with five tips for retirees. A few of them raise interesting considerations for those about to retire that could result in waiting for Medicare coverage to get treatment.
- There is no family plan in Medicare. So if you and your spouse have different medical and prescription drug needs, you can each enroll in the plan that is best for you.
- Cap on out-of-pocket costs isn’t automatic. Original Medicare pays 80% of covered expenses, with no cap on what you might have to pay. Medigap and Medicare Advantage policies have out-of-pocket safeguards. It is important to understand that component of the Medicare supplement policy.
- Be strategic in scheduling some procedures. Those about to retire should compare out-of-pocket costs for a needed procedure under employer coverage versus Medicare. You may fare better with Medicare’s hospitalization coverage, for example, than with your current commercial plan.
- Wellness features may be different. Medicare’s programs tend to offer more in-person care from health professionals, while commercial programs often depend on telephone advice services.
- Research may help limit drug costs under Medicare. Most people can use a Medicare tool to compare the plans offered where they live to find the best fit for individual needs. Doing your Part D homework might provide better and cheaper coverage than through your employer plan.
Changing medical insurance upon retirement is a big deal to retirees. Employers who are looking to ease the transition for retirees can direct retirees to a resource to help them consider their options. Fifteen percent of employers contract with a retiree exchange to provide personalized support to Medicare eligible retirees. In addition, the States have established Senior Health Insurance Information Programs (SHIIP) to help seniors. Educational tips and personalized support can go a long way to helping a new retiree feel confident about their healthcare choices and decisions.