The Kaiser Family Foundation reports that there were more than 61 million Medicare beneficiaries in 2024. Whether you have a disability or are old enough to qualify, there are many essential aspects you need to know about this program, including its various options. At Ruggiero Law Offices, our estate planning attorneys recognize the importance of having the right knowledge at the right time as you structure your retirement. So here are five critical facts about Medicare planning to consider.
What Is Medicare?
According to the Social Security Administration, "Medicare is a federal health insurance program for people age 65 or older. People younger than age 65 with certain disabilities, permanent kidney failure, or amyotrophic lateral sclerosis (ALS, also known as Lou Gehrig’s disease), may also be eligible for Medicare. The program helps with the cost of health care, but it doesn’t cover all medical expenses or the cost of most long-term care." Let's take a closer look.
1. Medicare Has Different Coverage Options
Medicare has four parts:
- Original Medicare Parts A and B
- Medicare Advantage Plan Part C
- Medicare Part D Prescription Drug
Each plan offers different coverage. However, not everyone needs all of them, so consult with a doctor or one of our estate planning attorneys about what works best for you.
2. You Must Meet Specific Qualifications
If you're a senior at least 65 years old or have a qualifying disability, you may receive Medicare. However, individuals who don't meet every requirement can pay a higher premium and receive benefits.
3. Enrollment Is Usually Automatic
There are several ways to enroll in Medicare. You're automatically registered if you receive Social Security or Railroad Retirement Board benefits. If you're not automatically enrolled, you can call your local Social Security office for more assistance.
4. Long-term Care Isn't Covered
Medicare does not cover long-term care such as live-in nurses. Consult with your attorney about planning for custodial care if you require it.
5. Be Careful With Your HSA
If you have a health savings account (HSA), you may withdraw money from it to cover Medicare premiums. However, you may not contribute to your HSA once you start receiving Medicare.
Besides the considerations listed above, there is much to know about Medicare planning. Since 1990, Ruggiero Law Offices has helped families like yours protect what matters most. We'll work with you and your doctor to determine which Medicare options work best for your continued good health and to preserve your retirement financial structure. You may not require every level of Medicare benefits, but you don't want to be without the necessary coverage.