Dave Ramsey, a personal finance expert, has provided insights on the Medicare program that might be useful for retirees and those nearing retirement age. According to Ramsey, Medicare can be confusing because the government created it, and there is a lot to understand. The basics of Medicare are that U.S. workers generally become eligible when they turn 65, while those with a qualifying disability can enroll sooner.
Original Medicare, which includes Parts A and B, covers many things, such as doctors’ and preventive services. However, it doesn’t cover everything, with standard exclusions being long-term care, routine physicals, and dentures. Although Medicare enrollment isn’t mandatory, most people enroll at some point.
People with Part A generally don’t have to pay a premium, though this can depend on individual circumstances.
Understanding Medicare eligibility and costs
In 2024, the average premium for those with Part B was $175.70 a month. Both Part A and Part B have yearly deductibles.
Ramsey points out that Medicare is complex and applies to both Original Medicare and Medicare Advantage plans. Advantage plans act similarly to traditional insurance plans, with both having limits regarding their network providers. Sometimes, an insurance company offering a Medicare Advantage plan won’t cover things like specialists, even if the enrollee was referred to them, meaning the enrollee must pay out of pocket for all associated costs.
With Donald Trump’s election for a second term, there are concerns about the future of Medicare. According to predictions, greater price transparency and an emphasis on Medicare Advantage plans could lead to a privatization of the program. For now, the best thing current and future retirees can do is monitor their coverage options and costs.
The U.S. healthcare system is confusing, but understanding the basics of Medicare and being aware of potential changes can help retirees navigate the program more effectively.
