An important subject for many people in the United States, Medicare should be a part of your scope in financial planning. Although many people know about Medicare, a majority of them don’t consider it as a part of their long-term financial goals.
It’s also important to note that market conditions, politics, and personal health and resources can affect your eligibility or access to these benefits. Nevertheless, this article will offer a no-fluff take on Medicare and its role in your financial planning endeavors.
Understanding the Basics
On the surface, Medicare can seem like a headache that you’d rather avoid, but this merely comes from a lack of general understanding. Whether you work with a financial advisor or try to navigate it on your own, sourcing Medicare coverage and advice is a smart move.
Medicare may be focused on those 65 and older, but it’s a relevant topic in the realm of financial planning, regardless of age. There are always alternatives when exploring long-term retirement planning.In the same vein, Medicare also comes with many unique caveats, from coverage options to individual healthcare needs and more. Split into different parts focused on varying types of coverage, Medicare is broken up into four distinct parts.
These include:
- Part A (Hospital insurance): Provides support for inpatient hospital stays, hospice care, and a few home health services, for example.
- Part B (Medical insurance): This takes more of a focus on outpatient medical services. A few examples include standard doctor visits and preventive care. It’s also structured with an income-dependent premium.
- Part C (Medicare advantage): Going this route gives you a combination of Part A and B. This comes with additional benefits such as coverage for dental and vision.
- Part D (Prescription drug coverage): Handled through private insurers, Part D offers prescription drug coverage and drug costs vary depending on the type of Medicare plan and the medications that are covered.
Medicare isn’t so black and white, but this gives you a pretty good idea of what it’s meant to provide. Even if these benefits are structured for the elderly, everyone should consider Medicare in the big picture of their financial plan.
Planning for the Long Term
From exploring financial advisory technology to managing Medicare, long-term financial planning is a challenge that everyone faces at some point. When it comes to the elderly, medical costs can skyrocket pretty fast, which is why programs like Medicare as well as Medicaid are vital.
Overall, your health is the focal point here, as it’s just as important in regard to financial planning as any other aspect. Without your health, your financial planning may not ever get the chance to be put to use.
Endnote
You might have just turned 18, or you’re a day away from 65; Medicare is something you’ll want to be prepared for. That’s where financial advisors can help a ton, as they can develop a plan that gets you organized.
Not only can they help guide you to the best decision for your needs, but they expedite the process and assist with navigating known challenges. The next time you sit down to plan for your financial future, make sure Medicare is a part of the conversation as well.