3 Medicare Misconceptions You Need to Clear Up Before Retirement

Written by Maurie Backman for The Motley Fool->

Knowing more about Medicare could save you money.

Understand what Medicare covers, when to enroll, and the costs you may be looking at.

Medicare is one of the most valuable benefits available to older Americans, but it's also one of the most misunderstood. Given that healthcare might end up being one of your biggest retirement expenses, it's important to clear up misconceptions you might have about Medicare before you bring your career to an end.

Here are three specific things you may have wrong about Medicare -- and what the real story is.

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Many people get tripped up in the course of their retirement planning because they go in with the assumption that Medicare itself is free. That's not true at all.

In addition to deductibles, copays, and coinsurance, there are premiums you'll pay for coverage. Medicare Part B, which covers outpatient care, charges a standard monthly premium that changes each year. The current cost for most enrollees is $202.90.

The cost of Part D or Medicare Advantage, meanwhile, hinges on the plan you choose. There are some $0 premium Part D and Advantage plans, but those won't necessarily offer the right set of benefits. So it's best to assume you'll have to pay for your Medicare coverage and factor that into your budget.

You might assume that Medicare will cover all of your health-related needs once you enroll. In reality, there are a number of services the program won't pay for, including routine dental care, most vision services, and hearing aids.

Now if you enroll in a Medicare Advantage plan, some or all of those items may be covered. But it's important to read up on the services original Medicare does and doesn't pay for, so your finances aren't thrown for a loop.

Medicare may be an important part of your retirement plans, so having the right information is crucial. Take the time to read up on how Medicare works and what costs to expect so you're able to prepare accordingly and make more informed decisions about your healthcare coverage.

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