Many individuals in the workforce get used to the perks of having a job, from reliable health insurance to a steady paycheck. But what happens when retirement hits at the same time medical bills skyrocket? It is critical for aging individuals in Connecticut to understand as much as possible about Medicare and debt management options when preparing for retirement.
Medical expenses are often the most sizable expense for seniors. To make matters more challenging, these bills are also often unexpected. Avoiding medical debt should be a priority for anyone looking to transition into retirement.
Enrolling in Medicare is the first and most important step for seniors. There is a seven month enrollment period, including the three month periods before and after a person's birthday month. There are also significant penalties to enrolling late, so signing up on time should be a priority for anyone looking to avoid debt from medical expenses.
It is also important for people to have a plan in place to make up for coverage gaps in Medicare. This includes deductibles, which for Medicare Part A adds up to $1,350. Medicare Part B, meanwhile, only covers 80 percent of outpatient benefits. For expensive services like chemotherapy and surgeries, this remaining balance can be extremely high.
Many people avoid high levels of medical debt in retirement by purchasing coverage to supplement Medicare. Others may turn to savings, or else find themselves in a debt management bind should they get sick. Those who are unable to pay their medical debt may need to speak with a Connecticut attorney about legally sound options for eliminating their amounts owed.