What you should know about Medicare

in Newsletter

As you get closer to retirement an important piece of the planning puzzle is understanding your options when it comes to health insurance. People who are 65 or older are entitled to Medicare, a federal health insurance program.

According to Medicare.gov, three different components help cover specific services:

Part A (Hospital Insurance)

Covers inpatient hospital stays, care in a skilled nursing facility, hospice care and some home health care.

Part B (Medical Insurance)

Covers certain doctors’ services, outpatient care, medical supplies and preventive services.

Part C (Advantage Plans)

A type of health plan offered by a private company that contracts with Medicare. Medicare Advantage Plans provide all of your Part A and Part B benefits.

Part D (Prescription Drug Coverage)
Adds prescription drug coverage to:

  • Original Medicare
  • Some cost plans
  • Some private-fee-for-service plans
  • Medical Savings Account plans

Whether you plan to retire around the age of 65 or not, it’s important to review your budget with your Medicare planning. Take time to consider the amount you can comfortably afford to put toward your health care each month. Other important costs to consider are:


A premium is the amount you pay each month for your plan. Plans offered by private insurance companies vary in price. If you are interested in Medicare Part C, shop around to compare the monthly premium price.


This is the amount you must pay out of pocket before your plan will help pay some, or all, of your health care costs. There are two types of deductibles: high and low. Go over the benefits of each plan with a deductible that works for your budget.


Also called a copay, the copayment is the amount of money you pay each time you have an appointment or fill a prescription. Not all plans have a copay while some have a high copay.


Your coinsurance is measured in percentages and refers to the percentage you pay for your health care costs and what the plan pays.

Navigating through Medicare enrollment can be stressful especially when you’re also trying to budget for retirement. With health care costs rising each year, it’s important to plan as best you can. SouthPoint Investmentl Services knows that retirement looks different for everybody. As a SouthPoint Financial Credit Union member, you have access to qualified investment representatives who can help you craft a plan and work toward your long-term goals.

For more information, contact Bob Skillings – Financial Advisors with SouthPoint Investment Services.

Bob Skillings | 706 N German St. New Ulm, MN 56073; 877-794-6712; Direct: 507-233-5624; Cell: 507-217-9038; Fax: 507-233-5601; [email protected]

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