![](\"https:\/\/www.thestreet.com\/.image\/c_fit%2Ch_800%2Cw_1200\/NDA6MDAwMDAwMDAyOTA1NDc0\/20260308-jq-daveramsey.jpg\")
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During my years of reporting on Americans’ personal finance concerns, I’ve found that bestselling author and radio host Dave Ramsey has a way of explaining complex issues in simple terms that cut right to the chase.<\/p>\n
When it comes to retirement planning, perhaps no topic has more moving parts than Medicare \u2014 and the goal of simplifying its complicated nature is an important one.<\/p>\n
“Why does this dang Medicare feel so confusing?” Ramsey asked, “Well, it was created by the government so that might be your first clue. And second, it\u2019s just a lot to understand.”<\/p>\n
Related: Dave Ramsey, AARP warn Americans on critical Social Security question<\/p>\n
Ramsey sees Medicare as the federal government\u2019s way of stepping in when people lose access to affordable employer\u2011based coverage in retirement, offering health insurance to those 65 and older as well as individuals with certain disabilities. <\/p>\n
It operates like a fee\u2011for\u2011service system in the sense that one uses care when needed and pays a share of the cost through deductibles and copays, much like traditional insurance. <\/p>\n
Because it\u2019s a government program, Medicare negotiates lower, preset rates with providers who accept Medicare patients, so the Medicare\u2011approved price for a service is typically far below what someone would face in the private insurance market.<\/p>\n
A person can enroll for Medicare when they turn 65 during an Initial Enrollment Period or any year after that during a General Enrollment Period from Jan. 1 to March 31.<\/p>\n
Dave Ramsey explains Medicare enrollment, penalties<\/p>\n
“The rules, options and dates around Medicare are crazy,” Ramsey wrote. “Especially enrollment. But it\u2019s important to know this stuff.” <\/p>\n
“Seriously, understanding and getting enrollment right is super important because if you get it wrong, you could end up paying penalties the rest of your life. Yeah, the stakes are that high!”<\/p>\n
When to enroll in MedicareMedicare offers several enrollment windows, but first\u2011timers really only need to pay attention to three of them.Anyone already collecting Social Security before turning 65 is placed into Parts A and B automatically.New enrollees can sign up during the Initial Enrollment Period, which runs from three months before the month you turn 65 through three months after.You can also join Medicare for the first time during a Special Enrollment Period \u2014 typically triggered by losing employer coverage \u2014 without facing late\u2011enrollment penalties.If you miss both of those opportunities, you can still enroll during the General Enrollment Period (Jan. 1\u2013March 31), though doing so usually means permanently higher premiums.Parts A and B are handled through Social Security, whether you apply online, by phone, or in person.To get Medigap, a Part D drug plan, or a Medicare Advantage plan, you enroll directly with the private insurer offering the coverage.
\nSource: Ramsey Solutions
\nThe parts of Medicare<\/p>\n
The Centers for Medicare and Medicaid outline the parts of Medicare as follows.<\/p>\n
Medicare Part A \u2014 Hospital CoveragePays for care when you\u2019re admitted to a hospital.Also covers stays in skilled nursing facilities after a qualifying hospital stay.Includes hospice services for people with a terminal illness.Offers limited home health care when medically necessary.Medicare Part B \u2014 Medical CoverageCovers visits with doctors and other outpatient providers.Pays for outpatient services, including tests, treatments, and procedures done outside a hospital stay.Includes certain home health services.Helps with the cost of durable medical equipment such as walkers, wheelchairs, and hospital beds.Covers a wide range of preventive care, including screenings, vaccines, and annual wellness visits.Medicare Advantage (Part C)Offered by private insurers approved by Medicare as an alternative to Original Medicare.Combines Part A and Part B, and most plans also include Part D drug coverage.Typically requires you to use doctors and hospitals within the plan\u2019s network.Out\u2011of\u2011pocket costs and premiums vary by plan and may differ from Original Medicare or Medigap.Often includes extra benefits not available under Original Medicare, such as dental, vision, or hearing coverage.Medicare Part D \u2014 Prescription Drug CoverageHelps pay for prescription medications, including many recommended vaccines.Available as a standalone drug plan added to Original Medicare.Also included in many Medicare Advantage plans.Provided by private insurance companies that must follow Medicare\u2019s rules.
\nSource: Centers for Medicare and Medicaid<\/p>\n
Dave Ramsey explains complex Medicare issues in simple terms.<\/p>\n
TheStreet<\/p>\n
Ramsey highlights what Medicare does not cover<\/p>\n
“Let\u2019s just say if Medicare were an outfit, it\u2019d be a bikini,” Ramsey wrote. “A lot of what Medicare doesn\u2019t cover is also what regular health insurance doesn\u2019t cover. But there\u2019s extra stuff too.”<\/p>\n
More on personal finance:<\/p>\n
Zillow forecasts big mortgage change for U.S. housing marketAARP sounds alarm on major Social Security problemDave Ramsey bluntly warns Americans on 401(k)s<\/p>\n
Medicare does not cover:<\/p>\n
Long-term careVisionDental (including dentures)Hearing aids (including exams for fitting them)Annual physicalsCosmetic surgeryMassage therapyAcupunctureChiropractic carePodiatry<\/p>\n
“Medicare also doesn\u2019t cover overseas health care costs (some regular health insurance plans do),” Ramsey wrote. “Medicare Advantage sometimes does cover specific vision, dental and hearing services.”<\/p>\n
Because Medicare doesn\u2019t cover everything, some people need to get supplemental health insurance (beyond Medigap), Ramsey explained.<\/p>\n
“Is this whole Medicare thing sounding a little complex?” Ramsey asked. “Frankly we agree! But it\u2019s nothing to sweat about.”<\/p>\n
Related: Jean Chatzky sends blunt message to Americans on 401(k)s, IRAs<\/p>\n
#Dave #Ramsey #shares #key #statement #Medicare #penalties<\/p>\n","protected":false},"excerpt":{"rendered":"
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