7 Steps to Making Sense of Medicare

For the most, um, senior members of our generation, Medicare eligibility is here right now — some 2.8 million Americans turn 65 this year.

I've just let my father's coverage keep rolling over with whatever my mother set up for them years ago. I'm lucky that she was so good about taking care of things like that.

I find myself completely mystified about Medicare: What exactly does it cover, how would I get it, and what is this donut hole?

I turned to Ross Blair, CEO of PlanPrescriber, a website that has basic information about the different "parts" of Medicare, as well as a way to find local providers and sign up.

In a nutshell, there are three basic ways to cover yourself: Original Medicare (Part A and Part B), with a Part D prescription drug plan; Medicare Advantage Plan, which can include vision, dental and prescription drug coverage; and a Medicare Supplement plan which fills certain gaps in Original Medicare.

His best tip: Don't wait until you're 65 to figure this stuff out. Here's what you should do now if your sixty-fifth birthday is in this decade:

1. Learn the basics.  Medicare is a different type of health insurance plan than you may be used to, so before you get inundated with sales pitches and unsolicited advice, try to understand the basics.
2. Do the money. If you haven't estimated what your retirement income will be, start doing that math before you enroll in Medicare.  Calculate your income and monthly expenses to develop a good sense of what you can afford to spend on Medicare each month. Also consider what kind of a Medicare deductible you can afford if you have a large medical expense.  Once you know what you can afford to pay each month for premiums and prescription drugs, as well as what type of annual deductible you could afford if you have an unexpected illness or injury, you're ready to start comparing plans.
3. Consider your health. This will help determine the type of Medicare coverage that best suits your needs. Talk to your doctor about the types of illnesses you're at risk for later in life, based on your current health status and family history.
4. Plan for meds. Some Medicare Supplement plans don't allow you to enroll later in life, and those that do may cost you more money. So, you want choose a plan that will fit your budget today, and in 15 years. If you take prescription drugs use a drug comparison tool to help you pick a plan that covers your drugs at the lowest possible cost.
5. Consider your travel plans. Whether you travel internationally or to different states, it's important to understand the circumstances under which you'll be covered. For example, some Medicare supplement plans that provide travel emergency health care coverage when you're in foreign countries. If you migrate to another state for several months each year, look for Medicare plans that will cover you outside of designated networks.
6. Forget brand loyalty. Some Medicare supplement and Medicare Advantage plans come from companies you've never heard of. If there is a brand you trust, investigate their coverage and consider it as an option. But don't pay more for the exact same coverage, because you like the name of the insurer.
7. Ask for help. In addition to online tools like PlanPrescriber, you can call your State Health Insurance Assistance Program (SHIP) for assistance. SHIPs receive federal funding to provide free local health insurance counseling to people with Medicare. Also, the federal government has created 1-800-MEDICARE to provide information about Medicare coverage and costs, as well as health plan options.