Dave Ramsey Offers Some Hard Truths About Medicare Every Retiree Should Know
Written by
Angela Mae
Edited by
Amber Barkley
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The U.S. healthcare system is confusing, but Medicare can be particularly hard to figure out. This is true for retirees and soon-to-be retirees. From gaps in coverage to having to enroll even if they don’t want to, many elements of the federal healthcare program can be frustrating.
Personal finance guru Dave Ramsey and the Ramsey Solutions team offered some thoughts on the Medicare program that might be useful to hear — even if you’re already enrolled. Here are some of the big ones.
Basics of Medicare
It helps to start with the basics.
Generally speaking, U.S. workers become eligible for Medicare when they turn 65. Those with a qualifying disability can enroll sooner.
Coverage
Original Medicare — Parts A and B — covers a host of things, including doctors’ services, inpatient hospital care and preventive services. Coverage is based on state and federal law, but the program generally covers services deemed “medically necessary.”
Original Medicare doesn’t cover everything, however. Common exclusions are long-term care, routine physicals and dentures.
There’s also Medicare Part D, which covers prescription medications and has its own coverage limitations. Those who need additional coverage can purchase Medicare Supplement Insurance (Medigap) or a Medicare Advantage Plan (Part C). This might cover things like vision, dental or hearing services.
Enrollment and Cost
Medicare isn’t mandatory, but most people end up enrolling in it at some point. People with Part A generally don’t have to pay a premium, though it depends. Those with Part B paid an average premium of $175.70 a month in 2024. There’s also a yearly deductible — $1,676 for Part A and $257 for Part B in 2025.
Part D renews automatically, which is convenient, but it is an extra cost. Similarly, Medicap and Part C have additional costs, and you’ll have to re-enroll manually every year for these.
Dave Ramsey on Medicare
According to Dave Ramsey — and even just the general rules of the program — Medicare can be “confusing.”
Why?
“Well, it was created by the government, so that might be your first clue,” the Ramsey Solutions post reads. “And second, it’s just a lot to understand.”
This goes for both Original Medicare and Medicare Advantage plans. Advantage plans act similarly to traditional health care plans: Both have limits in terms of their network providers.
Sometimes, an insurance company offering a Medicare Advantage plan won’t cover things like specialists — even if the enrollee was referred to them. This makes it so the enrollee must pay out of pocket for all associated costs of seeing that specialist.
Those who have Medicare Advantage must also pay a separate premium for both it and Medicare Part B. While an Advantage plan can be useful, as per Ramsey Solutions, they’re not the best option for everyone.
Medicare and the Trump 2.0 Administration
People have been concerned about the future of Medicare for years. Now that Donald Trump has begun his second term in office, the question becomes: What will happen next?
According to the JAMA Network and ABC News, here are some predictions for what may come:
- There will be greater price transparency: During his first term, Trump worked to make prices more transparent to both individuals and health care organizations. This may very well continue.
- More emphasis on Medicare Advantage plans: Under Project 2025, it’s possible that Medicare Advantage plans will become the “default option for Medicare coverage.” This could lead to a privatization of the program.
Medicare’s future remains to be seen. For now, the best thing current and future retirees can do is keep an eye on their coverage options and costs.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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