Social Security and Medicare are both programs that are household names, but many times are incorrectly lumped together as programs that must be taken simultaneously. Both programs were designed for Americans in their later years to help safeguard and provide peace of mind for both beneficiaries and their families as they age.
Social Security offers retirement, disability, and survivors benefits and was created to “promote the economic security of the nation’s people”. In 2022, there are more than 63 million beneficiaries of the Social Security Program. You can start drawing benefits as early as 62 years old in some cases. Many people choose to wait to claim the full retirement amount at age 67.
Medicare is our country’s health insurance program for people aged 65 or older and younger people receiving Social Security disability benefits. You do not have to draw social security benefits to enroll in Medicare. These two programs are completely separate from one another.
The Medicare program was designed to help with the cost of health care. Medicare is not one hundred present coverage. There is cost share in the form of deductibles and coinsurance. The Medicare program does not cover certain expenses such as vision, hearing, or dental in most cases. In addition, Medicare does not cover the cost of most long-term care.
There are two main ways to use your Medicare benefits, either through Original Medicare itself or through a Medicare Advantage plan. When you first enroll in Medicare you can choose how you get your Medicare coverage and during each year’s annual enrollment period you can make changes for the following year.
Original Medicare is made up of two parts, Part A (Hospital Insurance) and Part B (Medical Insurance). If you want drug coverage, you can join a separate Part D plan. Part A and Part B come directly from the federal government while Part D is only available through private insurance companies.
The out-of-pocket costs in Original Medicare (deductibles and co-insurance amounts) can be a concern for people. You can offset these costs by purchasing supplemental coverage. These are policies that you purchase from an insurance company and are called Medicare Supplements or Medigap plans. you can also shop for and buy supplemental coverage. Medicare Supplements only pay secondary to Parts A and B, so you would still purchase your Part D separately in.
Your other option is to enroll in a Medicare Advantage plan. Choosing a Medicare Advantage plan means choosing to get your Medicare benefits from a private insurance company rather than from the federal government. Medicare Advantage is an “all in one” alternative to Original Medicare. These “bundled” plans include Part A, Part B, and usually Part D.
Medicare Advantage plans may have lower out-of-pocket costs than Original Medicare. They also may offer extra benefits that Original Medicare doesn’t cover — like vision, hearing, dental, and more.
Medicare decisions are not one-size-fits-all. One must consider all situational and lifestyle factors when determining which route is going to be the best fit for them.
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