No. Medicare can involve monthly premiums, deductibles, and costs when you receive care. Many people qualify for premium-free Part A, but that doesn't make all their Medicare coverage free. If you're planning for Medicare in Lincoln, Nebraska, Bill Jurey's advice is to look at what coverage will cost before you build it into your retirement budget.
What costs should you expect with Medicare?
“It's not free. It is so, so, so not free.” That's how Bill puts it, because signing up and paying for coverage are two different steps.
If you're coming from a group health plan through an employer, it's easy to think, “I just signed up for Medicare and I have health insurance.” You do have coverage through Part A and Part B, often called Original Medicare. But you still need to understand the costs.
- Premium: The amount you pay to keep coverage, even in a month when you don't see a doctor. Part B generally has a monthly premium.
- Deductible: The amount you pay for covered services before that part of your coverage starts paying its share.
- Copay or coinsurance: Your share of a covered service's cost. A copay is a set amount; coinsurance is a percentage.
The amounts you pay depend on your coverage. A Medicare Supplement policy also has a separate monthly premium, so include that when comparing your options.
What could monthly premiums mean for a couple?
Bill asks a practical question: Does your monthly budget support two people paying $250 or $300 each just for a premium?
Using those amounts as an example, two supplement premiums of $250 each would total $500 a month. At $300 each, they'd total $600 a month. You haven't even seen a doctor yet.
Those figures illustrate a budget question, not a quote for a particular policy. They also aren't the couple's total Medicare costs. Part B premiums and any other applicable coverage or care costs still need a place in the budget.
What should you check before choosing coverage?
Start with the recurring monthly costs for each person. Then look separately at what you could owe when you need care. A low premium alone doesn't tell you whether coverage fits your budget.
Before enrolling, check how an option handles your doctors and prescriptions, what deductibles or other cost sharing apply, and which enrollment deadlines affect you. A friend's recommendation or a TV commercial can't answer those questions for your situation.
Bill Jurey helps people in Lincoln understand Medicare costs in plain English. Bring your questions, your prescription list, and the names of the doctors you want to keep to a Medicare planning conversation. The goal is to understand your options without pressure to choose a plan.
