Individuals turning 65 or older in 2026 are advised to enroll in Medicare, particularly if leaving employment or losing spousal health coverage, to avoid insurance gaps.
Another recommended action this year is signing up for Medigap, which could reduce healthcare expenses throughout retirement.
Medicare does not provide free healthcare; enrollees face monthly premiums, deductibles, copays, and coinsurance. A significant issue is the absence of an annual out-of-pocket spending limit.
Seniors with limited incomes from Social Security and modest retirement withdrawals may find medical bills overwhelming in high-cost years.
Medigap serves as supplemental insurance for Medicare, covering expenses like inpatient hospital deductibles, daily coinsurance for extended hospital stays or skilled nursing facilities, and Part B services coinsurance. It does not cover services excluded by Medicare, such as dental cleanings or eye exams.
Enrolling in Medigap during the initial six-month window, starting the first day of the month at age 65 with Part B enrollment, is crucial. Insurers must offer policies without medical underwriting at best rates during this period.
Delaying beyond this window risks denial or higher premiums. Medigap is only compatible with original Medicare, not Medicare Advantage.
Early Medigap coverage can alleviate financial stress in retirement, especially for those with chronic health issues requiring costly treatments.