You could save money on your Medicare plan with appropriate planning.
The start of autumn means Medicare open enrollment is drawing near.
If you are currently enrolled in Medicare, you are likely aware of this fact.
In fact, you have likely received an “annual notice of change” from your Medicare plan.
According to a recent CNBC article titled “Medicare open enrollment is coming up. Three steps to save money this fall,” you should review this for any changes in coverage, costs, and services effective next year.
With this knowledge, you may want to shop around to update your coverage during Medicare open enrollment.
Seniors have between October 15 and December to purchase a better or less expensive plan.
Common choices include switching from a Medicare Part A and Part B plan to a private Medicare Advantage plan.
Other individuals choose to simply change from one Medicare Advantage plan to another and add a prescription drug plan.
How can you make a choice with confidence during Medicare open enrollment?
Understand your plan.
It is important to know what your coverage was for this year and how it will change in 2021.
Carefully review the “annual notice of change” from your Medicare plan.
Next, you should review your medical expenses for the past year or, at the very least, the last six months.
Inventory your doctors and your prescriptions.
Compare the plans.
After you have a thorough understanding or your plan, you can start shopping and comparing plans.
A good resource to use is the Medicare Plan Finder.
What does this do?
It is an online tool provided by the government to help you evaluate plans and make the best selection for your needs.
Get in the habit of planning.
Your retirement planning should involve Medicare considerations.
Managing your premium costs requires you to do research and run the numbers.
Some Medicare premiums are calculated from your modified adjusted gross income from two years ago.
What is included in your modified adjusted gross income?
This includes normal income, Social Security, capital gains, and required minimum distributions from your IRAs and 401(k) plans.
Review your 2019 tax return to gauge your 2021 premiums.
Although you cannot change your 2021 Medicare premiums, you can work with your experienced financial planner to intentionally manage your income this year for future Medicare plan costs.
Reference: CNBC (August 26, 2020) “Medicare open enrollment is coming up. Three steps to save money this fall”