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With the annual open enrollment period for Medicare ending Friday, advisors should be aware of some options and costs that could affect clients. Christine Benz, director of personal finance for Morningstar spoke with Mark Miller, a Morningstar contributor who specializes in retirement issues, about what people need to think about with their Medicare plans. Here are six takeaways from their conversation:
1. There's another choice aside from the traditional Medicare plan: Medicare Advantage. Whereas the traditional Medicare is a "fee-for-service" plan, Medicare Advantage is an all-in-one plan that may also include vision and dental insurance. It's more like an HMO or PPO plan with in-network services.
"Medicare Advantage works really well for younger, healthier seniors," Miller said.
2. Retirees should review their Medicare Part D plans yearly, Miller stated, as "plans can change from year to year. The premiums can change, the out of pockets can change, what's covered can change. The provider networks can change." He added that by reviewing options yearly, money can be saved.
