Healthcare is one of the largest expenses you might face in retirement. And it's also an unavoidable expense. That's why it's so important to choose the right Medicare coverage.
Once you turn 65, you're eligible to sign up for Medicare. From there, you can stick with original Medicare, which is Parts A and B plus a Part D drug plan, or buy an all-in-one Medicare Advantage plan.
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There are certain benefits of enrolling in Medicare Advantage. For one thing, these plans tend to cover important services original Medicare does not, like dental care and eye exams.
Also, Medicare Advantage plans typically cap your out-of-pocket spending annually. That's an important thing if you're on a fixed retirement income.
Many retirees get most of their income from Social Security. Those who are fortunate may have some savings to supplement those monthly benefits.
But for a lot of seniors, money is tight. And under the right circumstances, Medicare Advantage could provide some cost savings.
However, the Medicare Advantage plan you're on now may not be the best plan for you in the new year. And now that Medicare's fall open enrollment period is underway, you have an opportunity to make changes to your coverage through Dec. 7. Here are some tips for navigating the process of finding a new Medicare Advantage plan.
1. See how your current plan is changing
Before you can choose a new Medicare Advantage plan, it's important to see how your current coverage is changing. By now, you should have received a notice of change from your Medicare Advantage plan administrator. It's important to read that notice carefully and take note of any changes that could impact you negatively.
It may be that your plan's premiums are rising. Or you may be looking at higher deductibles. Read the details carefully so you know what to expect, and what to look for in a different plan.
2. Make sure you're chasing the right benefits
One big perk of Medicare Advantage is that these plans tend to offer supplemental benefits beyond what original Medicare covers. In the course of looking for a new plan, you may be tempted to choose one that offers more benefits than your current plan. But it's important to make sure those benefits will actually be applicable to you.
You may, for example, find a Medicare Advantage plan that offers meal delivery as an included benefit. But you may not be eligible for that specific benefit if you don't have a diagnosed condition that a certain diet helps address.
3. Check each plan's provider network
One drawback of Medicare Advantage plans is that they tend to limit enrollees to specific provider networks. And going outside your network could mean facing very hefty costs.
Make a list of your various healthcare providers, and then check different Medicare Advantage plans to make sure they'll still be in network. And if there's a certain hospital you prefer to go to for care, you'll want to make sure that it's in network, too.
4. Compare your total costs
There are a number of costs you might face when you sign up for a Medicare Advantage plan. These include:
- Premiums
- Deductibles
- Copays
- Coinsurance
It's important to look at the big picture when choosing a new Medicare Advantage plan. One plan might have low premiums, or even $0 premiums. But if that plan's deductible and coinsurance rate are higher, it may not save you any money.
Also, pay attention to each plan's out-of-pocket maximum. If you anticipate a lot of healthcare expenses in the new year, you may want to opt for a plan with a lower cap on what you'll spend.
The right Medicare Advantage plan could help you save money in 2026 while providing access to the care you need. Keep these points in mind as you shop around for a new plan, but also, don't delay. The more time you give yourself to line up new coverage, the more likely you may be to make a decision you end up happy with.
