4 Steps to Prepare for Medicare
Enroll in Medicare Part B. If turning 65 or you are within 3 months of your birthday month, it is easiest to go to Medicare.gov and click “Apply for Medicare online”. The standard rate for Part B in 2020 is $144.60 a month. However, you may pay more or less depending on your income.
Carefully Choose your Medicare Plan. It is NOT one size fits all … Medicare Supplement (Medigap) vs. Medicare Advantage Plan (Part C).In addition, a Part D Prescription Plan must be considered when you are first eligible to avoid possible future late enrollment penalties. The longer you wait, the bigger the penalty which remains as long as you are enrolled in most cases. You also may pay a higher or lower premium depending on your income for Rx plans.
Plan for out-of-pocket expenses. No one has a crystal ball. Decide if Long Term Care Insurance and Dental/Vision Insurance is worth considering as well.
Review your Medicare Plan once a year on your own or with a trusted agent / consultant (the most advisable way for most people).
If you wait until the month you turn 65 to enroll, your Part B coverage will be delayed. This could cause a gap in your coverage. In most cases, if you don’t sign up for Medicare Part B when you’re first eligible (usually 3 months prior to your 65th birthday month through 3 months after your birthday month), you’ll have to pay 10% penalty for every year you wait – for as long as you remain on Medicare Part B.