5. Planning for health care
Understanding your health care priorities and matching them to appropriate coverage types can strengthen both your financial and emotional well-being in retirement. Start with a look at what's most important to you when it comes to health insurance coverage (i.e., affordability, plan flexibility, cost predictability).
Because you're enrolled in Vanguard Advice you have access to some powerful tools to help you understand and consider your options regarding health care costs and insurance coverage.
The Health Care Cost Estimator helps you calculate projected health care and long-term care costs based on personal information, preferences, and other factors.
You also have access to our Medicare Match tool, which provides options based on your preferences for affordability, plan flexibility, and more. (Note: you can log in to your account to access these tools).
Here's an overview of some key elements:
Medicare is a federal health insurance program.
Starting 3 months before your 65th birthday, you'll have a 7-month initial window during which you can sign up for Medicare; if you miss it, you may have to pay higher premiums for life. But if you still have medical insurance provided by an employer (including your spouse's employer), you can postpone enrolling in Medicare until that coverage ends without having to pay higher premiums later. Medicare coverage can begin as early as the first day of the month in which you turn 65.
There are several different Medicare options to choose from (referred to as Medicare Parts A to D), each covering different services. Some of them can be combined. It helps to have a strong sense of your personal preferences and health concerns before you identify the policy options that best meet your needs. It's also important to understand the logistics and timelines associated with Medicare enrollment.
Read more about Medicare options
Medigap is Medicare supplemental insurance; it's private insurance that covers some of the out-of-pocket copays and deductibles of Medicare. The 6-month enrollment window for Medigap begins on the first day of the month in which you turn 65. During this enrollment window, you can't be denied Medigap coverage or charged extra because of poor health. But if you miss the enrollment deadline, you may pay higher premiums for life or even be denied coverage.