A client recently asked me what to consider when becoming eligible for Medicare. Below are a few things to consider:

  • Once you’re eligible for Medicare, you’ll have an Initial Enrollment Period (IEP) to sign up. For most people, their 7‐month Medicare IEP starts 3 months before their 65th birthday and ends 3 months after their 65th birthday.
  • Most of the time, it’s better to sign up when you are first eligible.
  • If you enroll in Medicare after your IEP, you may have to pay a late enrollment penalty for as long as you have Medicare.
  • Premiums are typical $135/mo. (Source p9)
  • Those with limited income and resources may be eligible for help paying your Medicare Part B and Part D premiums and for some reduced cost sharing for Medicare Part D coinsurance/copayments.
  • Medicare Supplement Insurance helps fill the coverage gaps “Medigap”.
  • There are 11 Medicare Supplement Plans (generally between $120/$250/mo) that are standardized, guaranteed renewable (as long as you pay the premiums), with no referrals needed to see a specialist, no networks, and coverage throughout the entire USA.

The chart below shows basic information about the different benefits Medigap policies cover. (Source) Yes means the plan covers 100% of this benefit. No means the policy doesn’t cover that benefit. A % means the plan covers that percentage of this benefit. N/A means not applicable.

For more information, visit Medicare.gov.



Rich Feight, CFP
Rich Feight, CFP

Hi, I'm Rich Feight I'm a fee-only Certified Financial Planner, successful business owner, and self-made millionaire that knows how to beat the system and become wealthy. I have a lot of clients that have done it too. I'm also pretty good at finding that ever-elusive work/life balance so many of us strive for. Lucky for you I have an abundant mindset and give all my knowledge away on my blog. So if you want to know what it takes to become a millionaire, follow me.