There was once a time when people routinely expected to retire at the age of 65. Those days are behind us, and during our currently era, most people are aware of the fact that retirement is not a given. You must plan ahead in an intelligent, pragmatic, and informed manner if you want to be able to put your working years behind you.
When you are planning ahead for retirement, you should understand what to expect from Medicare. If you worked throughout your life, you will in fact qualify for Medicare coverage when you reach the age of 65.
This program will be of great assistance, and the coverage is solid, but there are out-of-pocket expenses that you should be aware of so that you don’t encounter any unexpected surprises.
You are not required to pay a monthly premium for Medicare Part A, which is the portion of the program that pays for hospitalization. However, there is a deductible, and there can be co-payments for extended stays.
Medicare Part B pays for visits to doctors and outpatient care. You have to pay a monthly premium for this coverage, and it would typically be deducted from your Social Security direct deposit when you start to draw a benefit. Right now, the monthly premium is just over $100 per month for most people.
You also have to pay premiums, co-payments, and deductibles for the prescription drug portion of the program, which is Part D.
The out-of-pocket expenses for services that are covered can have an impact under some circumstances, but most people would find them to be manageable. There is however a gap that is not easily managed: Medicare does not pay for long-term care. Nursing homes and assisted living facilities are very expensive, and most people will need living assistance eventually.
Medicaid is another government health insurance program, and it does pay for long-term care. It can be difficult to qualify if you have resources, because Medicaid is a need-based program. In spite of this, the program pays for most of the nursing home care that seniors are receiving.
It takes careful planning to qualify for Medicaid without losing assets that you intended to leave behind to your loved ones. However, if you take the appropriate steps, you may be able to obtain eligibility as you simultaneously keep assets in the family.
Schedule a Free Consultation
If you would like to discuss retirement planning and nursing home asset protection with a licensed professional, our firm can help. We offer free consultations, and we can provide you with personalized attention.
To set up an appointment, send us a message through our contact page: Grand Forks ND Retirement Planning Attorneys.
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