By Gordon Chavez, Financial Advisor
Medicare is medical insurance for people over 65.
It’s something I’m still learning about because I still have at least 15 years before I am eligible to sign up. But if you or a loved one is going to turn 65 in the next five years, it’s important to start preparing early. Medicare isn’t just about health care—it’s also about protecting your finances. Unexpected medical bills are one of the biggest threats to retirement savings, and Medicare provides a safety net that can prevent financial hardship. These 5 tips can help.
1. Know When to Enroll
Most people become eligible for Medicare at age 65. The best time to sign up is during your Initial Enrollment Period, which starts three months before you turn 65 and ends three months after your birthday month. Missing this window could mean penalties.
2. Understand the Basics
- Part A (Hospital Insurance)
- Part B (Medical Insurance)
- Part D (Prescription Drug Coverage)
You can also choose a Medicare Advantage Plan (Part C) that combines coverage.
3. Know the Costs and Support Options
Medicare is not free. You may pay monthly premiums, deductibles, or co-pays depending on your coverage. For those with limited income, programs like “Extra Help” (for prescriptions) and Medicare Savings Programs can reduce costs.
4. Balance Health and Budget
As Janetta Bouman, a Medicare Specialist at MedicareByJanetta.com, says, “The first thing you do is call Social Security. Then, there are healthcare options. You have to secure a suitable health insurance that is affordable for your budget.”
5. If You’re Still Working or a Caregiver
Even if you’re still working at 65, you may need to sign up for Part A, while delaying Part B until later. AARP explains more. https://www.aarp.org/
Medicare planning is financial planning. The earlier you understand your options, the smoother your transition will be—for you and your family. By learning now, you can avoid costly mistakes later and empower your household with peace of mind.
