The average retirement in the United States is 62. If you aim to retire at 62, there are many things that you should consider before you hand in your resignation. Many retirees are anxious because they fear running out of money. To protect your future income, you need to make a smart decision like when you will start your Social Security. You should also realise that Medicare does not kick in until you are 65.
Basically, your virginia medicare plans coverage will start when you are 65 years old. Thanks to the Affordable Care Act, you are guaranteed coverage regardless of your pre-existing conditions. However, you need to be aware that Medicare does not cover all the cost. To ensure that retirees can have the best care, they purchase additional health coverage as a supplement to their Medicare benefits.
If you already have a Medicare, it is important that you understand it so you can maximise it. Here are the things that you need to know about it:
What is covered?
There are two ways of getting Medicare – Original Medicare and Medicare Advantage Plan. Original Medicare has two parts – Part A (Hospital Insurance) and Part B (Medical Insurance). Part A covers inpatient or hospital care while Part B covers outpatient services and doctor’s visits. Medicare Advantage Plans are called Part C, which is offered by private insurance companies having different restrictions and premiums. The Prescription Drug Insurance is called Part D.
What is not covered?
As mentioned earlier, Medicare does not cover all the cost. You have to know the services that are not covered so you will know what to expect in the future. Medicare does not cover services like long-term care (of more than 100 days), most routine dental care, eye exams associated to glass or contact lenses, dentures, cosmetic surgery, acupuncture, hearing aids and routine foot care.
How much are you paying in?
You have to know that both employees and employers pay 1.45% of the employee’s wages into the Medicare system. For those who are self-employed, they contribute 2.9% of their income for Medicare system. For individuals earning more than $200,000 and couples earning more than $250,000 pay an additional 0.9% tax.
When is the deadline for enrollment?
It is important that you know when you should be enrolled. Remember that late payment will mean penalty or you will pay higher premiums. Some may get Medicare automatically while others need to apply. Your Initial Enrollment Period is 7 months – 3 months before you turn 65, the month you are 65 and 3 months after you turned 65.
It is critical that you understand your Medicare coverage choices and pick the right coverage carefully. Remember that it will definitely affect how you live your life after 65.