Most of the time we buy health insurance through our employer, often life and disability insurance as well. 

 So, what happens as you approach 65 and no longer have an employer to purchase through and don’t have retiree health benefits and need to select a Medicare health plan?

 You are on your own.

 Your benefits office may have some guidance for you, the Internet can serve up an often dizzying choice of plans and your mailbox will probably start filling up with “turning 65” offers. And health care can be one of your biggest expenses in retirement, so selecting the right plan is important.  

 Here are 3 tips for finding your way through the Medicare health plan maze:

1. Don’t Assume Your Current Insurer is the right choice for your Medicare Plan.

Not all companies offer all plans.  Some health insurance companies offer either Medicare Supplement or Medicare Advantage plans, others offer both.  Those who offer Medicare supplement plans may offer only a few – the most popular–of the standardized plans available.

If you are selecting a Medicare Advantage plan check and compare plans carefully to see what is included and not included.  If keeping your current doctors is important, start by comparing plans from companies that your doctors accept. Then compare co-pays, premiums and benefits.

2. Shop and compare prices. Medicare supplement plan prices vary widely. 

Medicare Supplement plans are standardized.  That means each company must offer identical benefits.  It doesn’t mean they have to charge the same price…and prices can vary a lot.  So once you decide on which plan (by letter Plan A, Plan B, Plan F, etc.) then get prices for that plan from 2 to 3 different insurance companies.

3. Compare benefits and premiums.

It’s not just the premiums when it comes to comparing Medicare Advantage plans and Medicare Part D plans.  You’ll want to look at co-pays, premiums, and additional benefits.  For example, some Medicare Advantage plans come with benefits like free health club membership.  If that’s not important to you, look at a plan without that benefit and see how it measures up. 

The Medicare website has tools that help you compare plan details as well as prices.  This also might be the time when you want to contact an expert in Medicare health insurance plans to help you find the right plan.  Your local area office on aging has resources that may be helpful.  Or contact an insurance broker who specializes in Medicare health plans and has a choice of companies for you to consider. 

Insurance rates are approved by each state’s  insurance commission.  So unless you are looking at a plan designed and marketed by a specific group (like an association), whether you receive a quote from the company directly or the agent, the rate for an identical plan should be the same.   So you can save yourself some time and effort by finding a source that can quote you plans from a variety of companies.

So as you approach 65, start gathering information and make sure you know the sign-up deadlines so you don’t get hit with a penalty. 

If you are 65 and still working, contact your benefits office to find out how your health insurance works with Medicare. 

The Medicare  and You 2010 book can help you get familiar with the ins and outs of Medicare.