Healthcare planning is a critical pillar of retirement strategy. At age 65, Medicare becomes the primary coverage option for most retirees. Understanding how it works, when to enroll, and how to coordinate it with your broader financial plan—including Social Security, Roth conversions, and withdrawal sequencing—can help you avoid costly missteps and protect long-term financial stability.
The Core of Medicare
Medicare is divided into distinct parts, each covering a specific aspect of care:
- Part A: Covers inpatient hospital stays, skilled nursing facility care, and some home health services. Usually premium-free if you or your spouse paid Medicare taxes.
- Part B: Covers outpatient care, doctor visits, preventive services, and medical equipment. Premiums are income-based and subject to IRMAA thresholds.
- Part D: Provides prescription drug coverage. Plans vary by provider and formulary.
Additional Options:
- Medicare Advantage (Part C): Bundled plans offered by private insurers that include Part A, B, and often D. May include dental, vision, and wellness benefits.
- Medigap: Supplemental insurance that helps cover deductibles, copays, and coinsurance not paid by Original Medicare.
For NRIs, especially those with Indian health assets or family support systems, choosing between Original Medicare and Advantage plans may depend on travel patterns, provider access, and coordination with international coverage.
Why Planning Ahead Matters
- Enrollment Timing: Missing your Initial Enrollment Period (IEP) can result in lifelong penalties. The IEP begins three months before your 65th birthday and ends three months after.
- Cost Management: Choosing the wrong plan can lock you into higher out-of-pocket costs, limited provider networks, or inadequate drug coverage.
- Strategic Alignment: Medicare decisions should be coordinated with:
- Social Security timing
- Roth conversions
- Retirement income ladder
- Projected MAGI to avoid IRMAA surcharges
Small Steps That Make a Big Difference
- Know Your Enrollment Window: Mark your calendar six months before turning 65 to prepare for Medicare enrollment
- Compare Total Costs: Look beyond premiums—evaluate deductibles, copays, drug coverage, and provider access
- Review Annually: Medicare plans change each year. So do your health needs. Reassess during Open Enrollment (October 15 to December 7)
Next Chapter: Long-Term Care Planning
Healthcare planning doesn’t stop with Medicare. In the next chapter, we’ll explore long-term care—one of the most overlooked risks in retirement. Preparing for it can protect your independence, your savings, and your family’s future.