Medicare was created in 1965 to make sure our seniors could pay for their healthcare needs. It keeps growing and changing with the newest addition being Part D, which was added in 2003.

Medicare A: Think of this as typical hospital insurance. The deductible is $1,288 for 2016 and Medicare pays the rest for the first 60 days of hospitalization. This is free for most Americans that worked and paid Medicare taxes for 40 quarters or 10 years.

Medicare B: This is the “physician part” of the insurance and includes lots of things such as doctor visits, lab work, x-rays, and diagnostic work. Medicare B has a $166 deductible for 2016 and will cost most Americans $104.90/month.

Medicare C (Medicare Advantage is sometimes referred as the “C”): These plans are run by insurance plans and actually replace your Medicare A, B and D. The government hands over money each month to the insurance provider and they become the “Medicare Provider” for that person. 

Medicare D: The Prescription Drug plan of Medicare that was created in 2003. These are managed by private insurance companies and have different deductibles and premiums.

Medigap: These are regulated and put together by the government but sold thru insurance companies. These policies are meant to reduce or eliminate the deductibles, co-insurance and co-pays and give seniors more predictable medical expenses.

Action Step: The six months before you turn 65 is the time to become a Medicare “expert”. There are more choices and timelines than most people realize and a good decision will pay dividends down the road.

Golden Nugget: Take it from somebody that has been in the industry a long time, figuring out your Medicare bills is not always an easy task. If you are having difficulties many families will designate one person to handle the medical bills on a monthly basis. It would be too difficult and confusing to have more than one or two cooks handle that stew.