Medicare Planning in the Berkshires

Medicare planning is one of the most effective ways to maintain your health and keep more of your wealth as you age. After all, retirement planning isn’t only about growing your wealth – it’s about protecting what you already have, too.

Medicare isn’t as simple as signing up

Most people approaching retirement know that Medicare is a federal healthcare program they’re entitled to receive at age 65. But it’s much more complex than that, which is why we partner with each of our clients to make the most of their benefit based on their own unique situation.

Here’s what many people don’t know about Medicare:

1. Medicare isn’t free.

Medicare Part A, which covers hospital stays, nursing facility care, and hospice care, has no premium. But Parts B, C, and D come at a price.

    2. “Medicare” is not a single program.

    Individuals approaching age 65 typically choose one of these two popular options for Medicare coverage:

    • Medicare Parts A (hospital care) and B (primary and preventative health care), plus supplemental plans such as Medicare Part D (prescription drug coverage) and “Medigap” plans based on their needs.
    • Medicare Advantage (often called “Medicare Part C”), which combines all of the above into one policy. You may see a lot of ads for Medicare Advantage on TV, but we don’t typically recommend this option since it often comes with limited coverage and can result in penalties if you later decide to switch to Medicare Parts A, B, and D.

    3. You can be penalized for missing Medicare deadlines.

    In order to access Medicare Part B, you must enroll during a seven-month period surrounding your 65th birthday (unless special circumstances apply). Missing your initial enrollment deadline, may incur penalties that last the lifetime of your Medicare Part B plan! The same penalty applies for Part D.

    4. More retirement income can mean higher Medicare premiums.

    The cost of Medicare Parts B and D are based on your income in retirement, meaning a large withdrawal from your retirement savings can increase the amount you pay for healthcare. Careful planning can reduce painful Medicare price hikes.

    5. Medicare won’t pay for long-term care.

    It’s estimated that 7 in 10 adults over 65 will need long-term care during their lifetimes. In 2023, the average cost of assisted living in Pittsfield, MA, was $117,900 per year. A semi-private room in a nursing home averaged $144,723.  (According to the 2023 Genworth Cost of Care survey.)

    To protect your life savings, we evaluate potential care costs against your financial plan and may recommend a long-term care strategy such as long-term care insurance.

    As a client of Berkshire Money Management, you’ll have support in staying on top of Medicare deadlines, selecting your optimal Medicare plan options, and avoiding costly Medicare premium increases and penalties.