What You Should Know About Medicare Before You Enroll

Medicare is a cornerstone of retirement health care, but that doesn’t mean it’s easy to navigate. With multiple parts, deadlines, and decisions to make, it’s common to feel overwhelmed by your options.

Whether you’re approaching 65 or helping a family member prepare, understanding how Medicare works and what to watch out for can help you avoid costly mistakes and make the most of your benefits.

What is Medicare, and Who is Eligible?

Medicare is a federal health insurance program primarily for people age 65 and older, though certain individuals under 65 with disabilities or specific conditions may also qualify.

If you or your spouse has worked and paid Medicare taxes for at least 10 years, you’re likely eligible for premium-free hospital coverage. But meeting the eligibility requirements is just the beginning; timing your enrollment and choosing the right plan can have a lasting impact on your finances and care options.

Medicare Explained: The Four Parts of Coverage

Medicare has four main parts, each serving a different purpose:

Part A – Hospital Insurance

Covers inpatient care in hospitals, hospice services, and limited time in skilled nursing facilities. 

Part B – Medical Insurance

Helps pay for doctor visits, outpatient care, lab work, and preventive screenings. Premiums are income-based and may be higher depending on your adjusted gross income for the two years prior.

Part C – Medical Advantage

Combines Parts A and B in a private plan that may include added benefits like dental, vision, and wellness perks. Plan options and provider networks vary depending on where you live.

Part D – Prescription Drug Coverage

Provides drug coverage through standalone plans or bundled Medicare Advantage plans. Choosing the right Part D plan can be especially important if you take regular medications or anticipate higher prescription costs in retirement.

More insight into plan types, costs, and enrollment strategy is available through our Medicare Planning Webinar.

How to Sign Up for Medicare

Enrollment is tied to several key periods:

• • Your Initial Enrollment Period starts three months before the month you turn 65 and ends three months after.
  • If you miss it, the General Enrollment Period runs annually from January 1 to March 31.
  • A Special Enrollment Period may apply if you delay Medicare because you have other coverage, such as an employer plan.

Missing the correct window can result in lifelong penalties, especially for medical and drug coverage. It helps to understand what to consider before you retire, particularly if you plan to continue working past 65.

The official Medicare.gov site also provides enrollment tools and personalized timelines based on your situation.

Common Medicare Mistakes to Avoid

Even when you’re eligible, navigating Medicare isn’t always straightforward. These common missteps can lead to surprise costs or coverage gaps:

• • Signing up too late or missing a required enrollment period
  • Overlooking how Medicare coordinates with Health Savings Accounts
  • Assuming Medicare covers all care types, including dental or long-term care
  • Skipping prescription drug coverage if you’re not currently on medication
  • Ignoring how your income can affect premiums, particularly for Parts B and D

If you’re managing retirement distributions or reviewing HSA strategies, these choices may affect how you approach Medicare timing. Similarly, understanding how Required Minimum Distributions work can help you plan for potential income-related premium adjustments.

How Medicare Fits Into Your Retirement Plan

Medicare can help control health care costs in retirement, but it doesn’t cover everything. Integrating your Medicare decisions with your broader retirement strategy can give you more flexibility and peace of mind.

That includes:

• • Understanding how premiums fit into your monthly income plan
  • Deciding whether to purchase Medigap or supplemental coverage
  • Evaluating how your health care needs may change over time

If you plan to travel, split time between states, or anticipate specific health needs, your Medicare decisions should support those goals.

What Happens Next

For many retirees, Medicare offers essential support, but only if you enroll at the right time, choose the right plan, and understand how it fits into the rest of your financial life.

There’s no one-size-fits-all path, but with the right strategy, you can make decisions that support both your health and your financial goals for the years ahead.