How to Assist Your Parents with Health Care in Retirement

Seek Objective Guidance.

Start with someone who isn't attempting to sell you (or your parents) something if you have questions. "People should not go to an insurance agent or an insurance business first," Caughill argues. "Are they looking out for your best interests?" Up to a point. But, in the end, they have to pay their expenses just like everyone else."

A Medicare counselor or advocate might be a valuable resource if you can afford it. (Try Googling "fee for service Medicare advisors.") Caughill recommends setting aside $500 to $1,000 for this type of counsel.

If that isn't an option, contact your state's Health Insurance Assistance Program, or SHIP. Yours can be found at ship help.org.

"They provide free, local, and unbiased information to persons aging into Medicare, people who are already Medicare recipients, their families, and their caregivers in every state," says Micki Nozaki, director of California Senior Medicare Patrol for California Health Advocates. "If they don't have everything, they can direct you to alternative resources."

Medicare.gov also has a wealth of information. Download the "Medicare & You" guide to become acquainted with the program. (Be prepared for a lengthy read.)

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Look For Insurance Rather Than Benefits.

People who are looking for Medicare or changing plans may become distracted by the extras. "People get so caught up in my free gym membership' or my $50 Walgreens gift card' that they lose sight of what really matters," Caughill says. "Medicare is basically health insurance."

Ascertain that your parents' medications are covered. Check that their doctors are in-network and that they will accept the coverage purchased. "The reason you have health insurance is so that if you get cancer, have a car accident, have Parkinson's [disease], or are hospitalized," Caughill explains.

Examine The Calendar.

Signing up for Medicare is a time-sensitive process that usually occurs around the age of 65. "One of the most important things people don't realize is that if they don't enroll in the correct time frame — and it's strict — they could face a penalty for the rest of their lives," Nozaki says.

Late enrollment penalties for Medicare Parts A, B, and D may apply depending on the circumstances. In many cases, you will be charged that penalty for the remainder of your Medicare enrollment. Because initial enrollment is birthday-specific, check Medicare.gov for enrollment deadlines that apply to your parents.

Check The Small Print.

Depending on their situation, your parents may be able to postpone enrolling in Medicare Part A or Part B. For example, if one or both are still working at 65 and have employer-provided health insurance, they may be able to postpone signing up.

However, the rules are very specific, including how long they have to enroll after they stop working or lose their employer coverage. Make certain that you (and they) understand when they must sign up. For more information, see this Medicare fact sheet.

Be Wary Of Con Artists.

Medicare beneficiaries are a popular target for fraudsters, so make sure your parents understand the following:

•Medicare does not solicit product sales.

•Unless you initiate contact, Medicare cannot enroll you in a plan over the phone.

•Unless you give them express permission ahead of time, Medicare will never call you and ask for your Medicare number.

•Your Medicare number is critical. Tell your parents to guard it as if it were a bank account or credit card number.

"I know it sounds simple and common sense," Nozaki says, "but unfortunately these telemarketers are so clever and devious that when they masquerade as Medicare, people believe they're getting a call from Medicare."