The Only Retirement Guide You’ll Ever Need

Not everyone retires with millions of dollars to spare. The limited savings you have after retirement, fueled by the lack of income, often prove to be devastating for the individual and their families in the event of critical illnesses. Going debt-free, regular exercise, maintaining mental health, and health insurance like Medicare or private insurance helps you support your medical expenses without eating up most of your savings.

However, carefully choosing a Medicare plan is quite critical. Despite being one of the cheapest alternatives, the federal Medicare plan has set the standards for other insurance programs. We’ll brief you about the other contexts of retirement and go through each part of the Medicare plan in this article and help you choose the best ones.

The Only Retirement Guide You’ll Ever Need

Why Health Insurance Is Important After Retirement

The primary reason to consider health insurance after retirement is lowered income. For most of the population, retirement means losing the primary income source. Even if you continue to work after your retirement, the absence of the major dollars should be compelling enough for you to buy a Medicare plan for drug and medical coverage.

The second reason is the increased risk of critical diseases. As you age, especially after retirement, you become more susceptible to severe and long-term diseases than younger people. Moreover, your organs like your heart, kidneys, and bones start to deteriorate pretty fast. Having a healthcare plan ensures that you get proper treatment and medications.

The third reason is safeguarding your savings. As you work through your whole life for your family, it’s devastating to see it all gone in a single extended hospital visit. A Medicare plan empowers you to get proper medical attention without worrying about drying out your savings.

Staying Healthy After Retirement

It’s understandable that you may not be as active after retirement as you once were. But, that shouldn’t stop you from maintaining your physical and mental health with exercise and proper dieting. Try to stay active with a gym membership specially designed for seniors or at minimum, stroll around a few blocks every day. If possible, join social clubs with members who actively indulge in physical activities like light exercises and hiking to maintain your physical and emotional health.

You may also need to change your diet after retirement. Consult your physician for the same. Avoid drinking and smoking as much as possible. Also, regularly go through routine checkups for any chronic and critical illnesses that may develop due to your age and lack of active work.

Going Debt-Free

While you may already have started to go debt free even before your retirement, the lumpsum gained from investments may also help you repay the debts. Consider avalanche or snowball method to repay the remaining debts that you may have.

Also read:

What Is Medicare

Reserved for individuals over the age of 65, younger people with disabilities and patients with end-stage renal failures, Medicare is a federal health insurance program that ensures the proper treatment for everyone irrespective of their income.

There are primarily 2 different parts of the Medicare program. Original Medicare and Medicare Advantage Plans. In the original medicare, Hospital (Part A) and Medical (Part B) are involved. However, Medigap and the Drug Plan (Part D) aren’t included.

The Medicare Florida Advantage Plan includes it all but misses out on out-of-network doctors across the US. It also is much more expensive than Original Medicare. However, out-of-networks are also covered in an emergency or urgent cases.

The limitations of Medicare plans are fitness programs, vision, hearing, and dental services. If you choose to consider any of these, your plan may not cover the costs. However, customizations are possible to include a few components like transportation, wellness services, and over-the-counter drugs.

As with most health insurance plans, deductibles are also present in Medicare. However, the Medicare Advantage Plans limit your yearly out-of-pocket costs for Part A and Part B. Once you’ve reached the limit, you aren’t required to spend anything for the purpose from your savings.

Medicare Part A

The most basic hospital coverages are considered in Medicare Plan A. Which includes:

  • Inpatient care in a hospital
  • Nursing home care
  • Nursing facility care
  • Home health care
  • Hospice care

Both the Original and Advantage Medicare plans include Part A as their basis of service. However, not every healthcare service or provider is included in the plan. Talk to your agent if your plan will cover what your healthcare provider has recommended. In a few cases, your procedure may not be covered even if it usually does.

The Part A of Medicare is based on:

  • Federal and state laws of a particular location.
  • Decisions made by Medicare if something is covered or not.
  • Policies set by companies processing the claims for Medicare plans. These companies are responsible for determining if your situation should be covered by Medicare or not. They work within the bounds of specific guidelines.

Medicare Part B

Basic medical services are covered in Part B. Again, both Original and Advantage Medicare plans include medical care (Part B) as a basic feature. It includes

  • Ambulance services
  • Clinical research
  • Durable Medical Equipment
  • Mental health coverage including inpatient, outpatient, and partial hospitalization.
  • A few prescription drugs

Typically, Part B covers medically necessary services that need to be facilitated to diagnose underlying issues and preventive services to detect diseases at an early stage to treat it. Similar to Part A, you need to talk to your healthcare provider about why you need a certain service or supply and understand if it’ll be covered by Medicare. Again, depending on the effect of the issue on your quality of life, you may or may not be entitled to get covered by Medicare.


Sold separately by private companies, Medigap fills the gap in Original Medicare and provides customers with a more than adequate experience while claiming the expenses. The most common costs that are covered by Medigap are:

  • Copayments
  • Coinsurance
  • Deductibles

Moreover, Medigap services thrive to offer services that the Original Medicare doesn’t cover like treatment outside the US or dental services. Let’s understand how Medigap works.

  1. Medicare pays the approved amount to the healthcare provider.
  2. Medigap kicks in to pay its share.

However, to avail of Medigap, you must already have Part A and Part B included in your plan. Also, it’s not a replacement for Advantage Medicare Plan and only supplements the Original Medicare benefits.

To avail of Medigap, you must pay the private insurance company their premium, in addition to paying Medicare for the primary insurance. Consider comparing Medigap services before opting in to get the plan that works for you. However, no one can sell you Medigap if you have an Advantage Medicare Plan and wish to continue with the same.

Medicare Part D

Included in the Advantage Plan and extendible in the Original Plan, Medicare Part D Focuses on prescription drugs and drugs in certain protected classes, including the drugs that treat cancer or HIV/AIDS. Depending on the plan, the formulary—list of drugs, may change. Typically, lower-tier drugs cost less than higher-tier drugs.

Typically, a minimum of two drugs from each class are included in the drug plan, but there aren’t any regulations as to which of them to choose. It depends on the plan. Therefore, you may not find the particular drug you are prescribed, but a different one with the same composition. You can learn more about the formulary and tiers here.

The Bottom Line

It’s important to understand the importance of healthcare after retirement. Hopefully, this article has been able to guide you through the complexities of choosing a Medicare plan that works for you. Get informed about Part A, B, and D for the basic coverage. Consider Medigap if you need additional support.

Francis Nwokike

Francis Nwokike is a Social Entrepreneur and an experienced Disaster Manager. I love discussing new business trends and marketing tips. I share ideas and tips that will help you grow your business.

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