Pre-retirees who believe that Medicare will cover everything healthcare related are in for a shock. Just because you have homeowners’ insurance doesn’t mean your leaky toilet will be repaired for free, or that you’ll get a complimentary replacement HVAC when your old system dies. Medicare works in a similar manner - it covers many things but leaves a lot of out-of-pocket expenses. 

Original Medicare is designed to cover the basics, inpatient and outpatient services, but only to a point. Medicare won’t cover prescription drugs, dental care, eye exams and glasses or contacts, hearing exams and hearing aids, or long-term care. Just like traditional healthcare insurance, the cost of your plan will depend on the coverage you choose because there are different parts to Medicare.

You should enroll in Medicare a few months before your 65^th birthday  online, by phone, or in-person at a Social Security Administration office near you. One enrolled you’ll select either original Medicare - part A & B with the option to add part D (drug coverage), and a Medigappolicy – or a Medicare Advantage Plan (part C) which is a bundle of part A, B, and usually D. Medigap is not available with a Medicare Advantage Plan.

Neither original Medicare nor Medicare Advantage is necessarily better than the other. Yet with Medicare you’ll have more flexibility as there are no provider networks. You’ll be able to seek care from any provider at any facility that accepts Medicare, and your costs will be more predictable. Medicare Advantage Plans are like the insurance you may have at your job - either HMO or PPO with out of network issues and pre-approval requirements.

When you are ready to choose your coverage, you’ll need to create an account on Medicare.gov then compare plans and prices. If you have specific plan questions, call 800-772-1213 to speak with someone at the Social Security Administration who can walk you through your options.