Enrolling in Medicare coverage can aid in the reduction of healthcare expenses as opposed to paying for them out of pocket. You could potentially save money on Medicare coverage by determining what your health coverage needs are and finding a Medicare plan that suits your current situation.
If you’re currently enrolled in Medicare coverage or turning 65, here are 10 ways that can help you save money on Medicare, whether it’s Medicare Enrollment Period or any time of the year.
1. Review your Medicare benefits and premiums
The first step in saving on your Medicare expenditures is to evaluate your monthly Medicare premium. Depending on your Medicare coverage, there may be ways to decrease your monthly premium costs.
Individuals who are eligible for Medicare typically receive free premiums for Medicare Part A and pay $170.10 in 2022 for Medicare Part B. However, there are ways to lower your total premium costs to zero or almost zero, in addition to the Part B premium.
For instance, there are numerous Medicare Advantage HMO and PPO plan options available with a monthly premium of $0.
2. Consider getting a Medicare Advantage Plan
An alternative option to enrolling in Original Medicare (consisting of Medicare Part A and Part B) is to enroll in a Medicare Advantage plan.
Medicare Advantage plansprovide coverage for everything that Original Medicare does, and some plans may offer additional benefits such as coverage for prescription drugs, vision, dental, hearing, and more. It is important to note that hospice care is still covered by Medicare Part A even if you have a Medicare Advantage plan.
While the benefits of Original Medicare are the same throughout the country, Medicare Advantage plans may offer extra benefits and provide additional ways to save money on some health care expenses.
Agent’s advice:
“Medicare Advantage plans offer extra benefits that may reduce your out-of-pocket costs for dental, hearing, vision, gym memberships, and more, leading to potential savings.”
3. Evaluate your prescription drug expenses
For many individuals, prescription drugs are a significant expense, including those covered by Medicare. Various prescription drug plans or Medicare Advantage plans may cover your medications at different rates.
One way to begin saving is to research plans that cover all of your medications at the lowest cost. Medicare plans offer five tiers of prescription drug coverage, ranging from low-cost generic medication coverage to high-cost specialty medication coverage.
4. Lower your expenses on healthcare services
Reducing Medicare expenses can start with saving money on routine healthcare services. Did you know that the cost of a medical procedure can vary depending on where you receive treatment?
For instance, an urgent care center will generally charge less than an emergency room visit. The same goes for outpatient procedures performed in a surgical center versus a hospital, which is typically more expensive.
Knowing your treatment options and where you receive healthcare services can significantly impact overall expenses. Additionally, being informed about how each Medicare plan covers healthcare providers or vendors can mean the difference between paying full price fees or a reduced negotiated rate.
5. Get extra benefits
Choosing the right Medicare plan can provide you with additional benefits, resulting in significant cost savings. These benefits may include coverage for fitness programs, wellness activities, and other healthcare services.
For instance, Medicare Advantage plans may provide an allowance for hearing aids, glasses, contacts, and over-the-counter health products. There are also plans that include regular dental, hearing, and vision services.
Most Medicare Advantage and Medicare Supplement plans offer gym memberships at no extra charge. If you are paying a lot out-of-pocket for these benefits, switching to a Medicare plan that covers your specific needs can help you save money.”
6. Find out if you’re eligible for Extra Help
There are a number of programs that offer financial assistance for Medicare to qualified individuals. These programs include help for people on Medicaid, other low-income circumstances, people living in U.S. territories and more.
There are four types of Medicare Savings Programs:
- Qualified Medicare Beneficiary (QMB) Program
- Specified Low-Income Medicare Beneficiary (SLMB) Program
- Qualifying Individual (QI) Program
- Qualified Disabled and Working Individuals (QDWI) Program
There is also a program called Extra Help, which can help qualified Medicare beneficiaries pay for some of their Part D prescription drug plan costs.
7. Avoid late enrollment penalties
To avoid future late enrollment fees, it’s important to sign up for Medicare coverage when you first become eligible. Late enrollment penalties can apply to Medicare Part A, Part B, and Part D.
If you don’t qualify for premium-free Part A and fail to enroll, you’ll incur a late enrollment fee of 10% of any premium owed, which you must pay for twice the number of years you were eligible.
The Part B late enrollment penalty will increase your monthly premium by 10% for each year you were eligible but did not enroll. You’ll continue to pay the penalty as long as you’re enrolled.
For Part D, the late enrollment penalty is 1% of the “national base beneficiary premium” multiplied by the number of full months you were eligible but did not enroll. Waiting 24 months to enroll could increase your monthly premium by about $8.
Although Medicare Supplement Insurance doesn’t have late enrollment penalties, you may pay higher premiums if you don’t enroll early. If you choose to enroll later on, insurance companies can use medical underwriting to determine your plan rates.
8.Choose In-Network Health Care Providers
Choosing healthcare providers who are in your network can help you save on medical expenses. In-network providers have a contractual agreement with your health plan, so you usually pay less for their services compared to out-of-network providers.
9.Use a Health Care Savings Account (HSA) or Flexible Spending Account (FSA)
You can save money on healthcare expenses by utilizing a Health Care Savings Account (HSA) or Flexible Spending Account (FSA), which are often offered by employers. These accounts allow you to set aside pre-tax funds for medical costs, potentially saving you hundreds of dollars each year. HSAs are owned by you, accrue interest, and can be transferred to a new employer, while FSAs are owned by your employer, do not earn interest, and must be used by the end of the calendar year.
10. Get Medicare coverage for chronic conditions
If you have a chronic condition such as diabetes, COPD, or chronic heart conditions, choosing the right Medicare plan that covers your specific needs can help you save on regular medical expenses. Insurance carriers offer plans that are designed to treat and manage these conditions, which can lower your routine medical expenses. Opting for Medicare coverage that is tailored to your chronic conditions can also provide cost savings for medications and supplies associated with your health situation as you age.
FAQS
1.How can I save money on Medicare?
There are several ways to save money on Medicare, such as enrolling in the right plan, choosing in-network providers, using health savings accounts, and taking advantage of available programs for financial assistance.
2.How can I find out if I’m eligible for financial assistance with Medicare?
You can check with Medicare or your state’s Medicaid program to see if you’re eligible for financial assistance with Medicare.
3.What is Extra Help?
Extra Help is a program that provides financial assistance to qualified Medicare beneficiaries for some of their Part D prescription drug plan costs.
The Bottom Line
In conclusion, there are various ways to save money on Medicare, ranging from choosing the right plan for your needs and enrolling during the right time frames to utilizing savings accounts and in-network providers. By taking advantage of these options, you can receive twice the benefits from your Medicare plan – increased financial savings and better health to enhance your overall quality of life.
Need help? Call Brady Insurance Marketing: 801-347-2087. Our assistance is at no cost to you