Understanding Medicare

There shouldn’t be anything new here to readers of Retirement Watch and my books, but this article is a good review of the basics of Medicare and how to choose your coverage.

Deciding on a type of plan is critical. Take the example of someone who wants more freedom to select health care providers because of a serious medical condition, and later wants to move from a Medicare Advantage Plan to traditional Medicare during the annual open enrollment period.

It may not be easy to switch, Vernon says.

“Most insurance companies apply medical underwriting, and can either deny coverage due to pre-existing conditions or charge a higher premium,” Vernon said. Three states — Connecticut, Massachusetts and New York — prohibit insurance companies from doing this. “It’s something to think about when thinking where you might retire,” Vernon said.