Insider Jeff Fleming

Ensuring a Secure Retirement

Think you're ready for retirement? What about health care? This week, Jeff helps you make a Medicare checklist. Plus, find motivation for getting an early start on your financial plan.

Dear Jeff:
I will be retiring in five months. I've been planning on this for quite awhile, but is there a check list of things to have ready for Medicare and life after 65?

Jeff Says:
The first thing to do is sign up for Medicare. Contact your local Social Security office and schedule a personal meeting. An assigned representative will help you with the enrollment process and answer your questions. You should also talk to your representative about your retirement benefits, including how much you can expect to receive.

People often confuse Medicare with Medicaid. Medicaid is health insurance that is available only for people with low income and very limited assets. It is a type of welfare program. Medicare, on the other hand, is the health insurance provided to individuals 65 or older and to those who qualify due to a disability. You know the saying: "there are no free lunches"? It is still true. We pay for this benefit during our working years, currently at the rate of 1.45 by both employers and employees. Self-employed persons pay 2.9 percent.

Now, what do you get for your money? Medicare has two parts. Part A: hospital insurance--this pays for inpatient hospital care, skilled nursing facility care, home health care, and some additional services. You automatically qualify for this part if you are eligible for Social Security Benefits. Part B is an optional portion and covers expenses such as doctors' services, outpatient hospital services, and various tests. If you sign up for Part B, and almost everyone does, there is a monthly charge of nearly $45.

To receive additional information, you can call Social Security at (800) 772-1213 and ask for a free copy of the booklet "Medicare" (Publication No. 05-10043). The automated phone answers 24 hours a day.

Retirement Planning