Is Medicare Part of Your Retirement Portfolio?

This would be a good time to hire a prudent financial planner who can help you work out how the next phase of your life will work out for you.

The planner could also help you with other pension issues you will face, such as choosing a Medicare supplemental plan, paying for long-term care, and managing the required minimum payouts. It is not inflation, or even market trends, that poses the greatest risk to your retirement savings. Business Insider After surviving the Great Recession, three retirees share their tips on how to keep a portfolio of the strongest retirement plans.

In fact, health-care costs are often overlooked or underestimated by retirees who put money away and often underestimate it. A basic Medicare supplement costs less than $1,000 a year, according to the Centers for Medicare and Medicaid Services (CMS).

A recent White Paper, “Why Health Needs to Be Part of Retirement Planning,” contains new data detailing projected health costs – care costs and strategies for planning, managing, and even reducing them in retirement. A retiree would need $387,644 in today’s dollars just to cover lifelong health care costs. This does not include the cost of a basic Medicare supplement for the years you retire, such as Medicare, Medicaid or Social Security.

If you don’t think you need to enroll, you can enroll in MedicareĀ  through your employer’s health insurance plan, which is covered by the Affordable Care Act (ACA) and Medicare Part D. Retirees must also pay a penalty for the cost of their health insurance, known as Part C. This is not a reason for retirees to be penalized, but it includes the total cost of living, which is $387,644.

Employees working for companies with more than 20 employees should discuss options with the employee benefits manager. To be eligible, a person must register if their employer offers health insurance but also has fewer than 20 employees.

HSA money can be used to pay other Medicare premiums, including deductibles, co-payments, co-payments and other medical expenses. Employees planning to switch should keep this in mind when their plan decides whether Medicare claims they can no longer make contributions to their health savings accounts, even if they have one.

Most people will rely heavily on government-sponsored plans such as Medicare for retirement health care. If more vacation is your goal for retirement, be sure to purchase additional health insurance.

One potential pension gap is whether you plan to retire before age 65. If you currently have a generous employer-sponsored plan, you may not need to keep that coverage in retirement, but you should weigh up whether it makes sense to downgrade it to reduce costs. Visit to check your eligibility and calculate your estimated premium. If you are eligible at age 65, part of the cost will be deducted from your paycheck.

Customers approaching age 65 should check that their health insurance is eligible for Medicare in order to avoid permanent surcharges.

Medigap, also known as Medicare Supplement Insurance, offers an option to cover expenses that traditional Medicare does not. If you are covered by Medicare, Medicaid or other health insurance plans in your state, you should consider buying Medicaid insurance. It covers expenses such as deductibles, co-payments and co-pay, as well as prescription drugs and other medical expenses.

Compare Medicare supplement plans because are federally required to provide specific core care, but are subject to state legislation to provide supplemental care.

This means that retirees before the age of 65 who plan their health insurance costs for retirement plan for when their employer – the subsidized employer group – stops providing health insurance or starts Medicare. Silver plans for early retirees are priced just as much as their older counterparts. This, in turn, has introduced additional premium-tax options, including premium support credits that can be available to married couples with children under 18 or individuals with incomes up to $50,000.

The Medigap supplemental insurance, sold by private insurance companies, also cannot cover health costs such as deductibles and co-pays paid by Medicare.

There is an insurance process, similar to life insurance, that customers would have to go through to qualify for cover. Before taking out a Medigap policy, you must have a Part B Medigap plan, which varies widely and can cost up to $175 a month. Medicare recipients spend an average of $4,600 a year out of pocket, according to the Centers for Medicare and Medicaid Services (CMS).

Medicare Advantage plans, also known as Part C, are defined as Medicare health plans offered by private companies contracted with Medicare to provide coverage under Part A and Part B. Medicare supplements give customers certainty because they don’t have to pay more in premiums to have access to the same health benefits as their Medicare Advantage plan. In some cases, Medicare benefit plans also offer Part D, known as MAPD, while adding additional benefits such as dental health, eyesight and hearing.