Medicare Choices: How to Protect Your Financial Freedom
“Your wealthspan isn’t complete until your health plan fits.”
Understanding Medicare is how you protect your freedom
Estimated Read Time 4 Minutes
Guest Author: Laurel Corridon, Medicare Expert, Health Markets
Introduction
You’ve worked a lifetime to build stability, your health, career, and finances. As you approach age 65, Medicare becomes part of that safety net. But here’s what many people don’t realize: Medicare doesn’t cover everything. The wrong choice could leave you facing thousands of dollars in unexpected medical costs.
This article breaks down how Medicare really works, the decisions that matter most, and how to avoid costly mistakes that can put your retirement at risk.
The Cost Gaps Most People Miss
Original Medicare (Parts A and B) offers valuable coverage but comes with big holes.
No annual out-of-pocket maximum: There is no upper limit on what you might pay for hospital and medical services under Original Medicare.
You still pay 20% coinsurance for outpatient care after meeting the deductible, with no cap.
Prescription drugs aren’t included — you need a separate Part D plan for that.
In 2025, the standard Medicare Part B premium is $185 per month, and the Part B deductible is $257. If you earn above certain income thresholds, you’ll pay an additional surcharge called IRMAA (Income-Related Monthly Adjustment Amount).
Those numbers may sound manageable until you add up real-life examples, such as chemotherapy, imaging, or rehabilitation where 20% coinsurance can mean thousands out-of-pocket.
Two Main Paths to Fill the Gaps
When you become eligible for Medicare, you have two broad options to protect yourself from unpredictable costs:
Original Medicare plus a Medigap (Supplemental) Plan
Medicare Advantage (Part C)
Each has benefits and trade-offs.
Option 1: Medigap – Freedom with Predictability
Medigap policies are supplemental plans sold by private insurers that cover many of the costs Original Medicare doesn’t — including copayments, coinsurance, and deductibles.
Among the most popular are:
Plan G: Covers nearly all gaps except the Part B deductible.
Plan N: Offers slightly lower premiums but includes modest office and emergency room copays and doesn’t cover excess provider charges.
Why many people choose Medigap:
You can see any doctor or specialist who accepts Medicare nationwide.
There’s minimal paperwork or prior authorization.
Your annual costs are predictable.
If you’re considering a Medigap plan, timing is crucial. You have a six-month Medigap Open Enrollment Period starting when you enroll in Part B. During that window, insurers must accept you regardless of health conditions. After that, you can be denied or charged more based on medical history.
Option 2: Medicare Advantage – Simplicity with Boundaries
Medicare Advantage (MA) plans, also called Part C, are offered by private insurance companies approved by Medicare. They combine Parts A and B, and many include prescription drug coverage plus extras like dental, vision, hearing, or gym memberships.
The trade-off:
You typically need to use doctors and hospitals within the plan’s network.
Many services require prior authorization.
Coverage outside your service area may be limited.
However, there’s a major advantage: an annual out-of-pocket maximum (MOOP) that caps how much you can pay in a year for covered services.
In 2025, the federal MOOP limit for in-network services is $9,350, though many plans offer lower limits. Prescription drug costs under Part D do not count toward this limit.
For people who prefer bundled simplicity and can stay within a network, Medicare Advantage can be a strong option.
Income Matters: Understanding IRMAA
High earners pay more for Medicare Part B (and sometimes Part D) through IRMAA a surcharge based on your income from two years prior.
For example, 2023 tax returns determine your 2025 premiums. These higher costs can narrow the price difference between a Medicare Advantage plan and a Medigap plan, making flexibility and access more important decision factors than premium alone.
The Deadlines You Can’t Miss
Medicare enrollment isn’t automatic for everyone. Understanding your timelines is key to avoiding penalties:
Initial Enrollment Period (IEP): Starts three months before your 65th birthday month and ends three months after.
Special Enrollment Period (SEP): For those who delay Medicare because they have qualifying employer coverage.
Medigap Open Enrollment: Lasts six months once you have Part B.
Missing these windows can result in lifetime penalties or limited coverage options.
Choosing What’s Right for You
The “best” plan depends on your health, lifestyle, and finances. Here’s how to decide:
Consider your medical needs. Do you see specialists often or anticipate surgery?
Think about flexibility. Do you travel frequently or live in multiple states?
Review your prescriptions. Make sure your medications are covered affordably.
Compare total annual costs. Don’t look only at premiums — factor in copays, deductibles, and limits.
Reassess yearly. Plans and personal needs change over time.
This is not a one-time decision; it’s an evolving part of your financial and health planning.
A Real-World Example
Consider a retired couple in their late 60s. One partner is healthy and rarely sees doctors. The other needs ongoing treatment for a chronic condition.
The healthy spouse chooses a Medicare Advantage plan with a low premium and local network.
The spouse with complex care needs chooses Medigap Plan G for nationwide access and predictable costs.
The result: each gets the right balance of cost, coverage, and freedom — tailored to their needs. That’s smart Medicare planning.
Final Thoughts
Medicare is not one-size-fits-all. It’s a personal decision with lifelong financial consequences. Understanding how the pieces fit together — and when to act — can protect your retirement income and your quality of care.
If you’re turning 65 soon or reconsidering your current plan, now is the time to talk to a trusted expert who can walk you through your options.
About the Author
Laurel Corridon is a Health and Medicare Consultant with nine years of experience guiding clients as they transition into Medicare. Known for her friendly and compassionate approach, she helps individuals understand their options and choose plans that fit their health and financial needs. Laurel’s goal is to make the Medicare process simple, clear, and stress-free for every client she serves.
Contact Laurel:
Phone: (703) 675-4406
Email: lcorridon@healthmarkets.com
Sources
Centers for Medicare & Medicaid Services (CMS). “2025 Medicare Parts B Premiums and Deductibles.” CMS.gov
U.S. Centers for Medicare & Medicaid Services. “Medicare Costs at a Glance.” Medicare.gov
National Council on Aging (NCOA). “What You Will Pay in Out-of-Pocket Medicare Costs in 2025.” NCOA.org
Medicare Interactive. “Medicare Advantage Plan Overview: Maximum Out-of-Pocket Limit.” MedicareInteractive.org
Disclaimer:
The information provided in this article is for educational purposes only and is not intended to serve as financial, legal, tax, or medical advice. Every individual’s situation is unique, and the content may not address your specific circumstances. You should consult a qualified professional, such as your financial advisor, tax advisor, or healthcare professional, before making any decisions related to Medicare, insurance, or financial planning.
The author, guest contributors, and Longevity Wealth Strategies make no warranties or guarantees regarding the accuracy, completeness, or applicability of the information contained herein. Reliance on this material is at your own risk.
