PART 2 OF 4 | PUBLICATION DATE: MONDAY, OCTOBER 12, 2026
Health Coverage Is Part of the Plan: Preparing for Medicare Open Enrollment
"Be thou diligent to know the state of thy flocks, and look well to thy herds" - Proverbs 27:23 (KJV)
Healthcare decisions are financial decisions. For retirees and people approaching retirement, Medicare can affect monthly cash flow, prescription costs, access to doctors, travel flexibility, and the amount of income a retirement plan needs to support.
That is why Medicare should not be treated as a separate paperwork task. It belongs inside the broader retirement conversation.
Medicare Open Enrollment runs each year from October 15 through December 7. During this period, people with Medicare can make certain changes to Medicare Advantage and prescription drug coverage, with changes generally taking effect January 1 of the following year. Even if your current coverage has worked well, an annual review can still be worthwhile because premiums, drug formularies, provider networks, and out-of-pocket costs may change from one year to the next.
Do Not Assume Last Year's Plan Is Still the Best Fit
A common retirement-planning mistake is inertia. Once a Medicare plan is in place, it is easy to assume it can simply continue unchanged. But healthcare needs can shift quickly, and plan details can change annually.
A careful review should look beyond the monthly premium. A plan with a lower premium may have higher copays, a different prescription formulary, narrower provider networks, or different rules for out-of-network care. For someone who travels frequently, spends part of the year in another state, or sees several specialists, those details may matter significantly.
This is a practical example of stewardship: paying attention to what we already have rather than operating on autopilot. Proverbs 27:23 encourages diligence in knowing the condition of what has been entrusted to us. Applied to retirement, that means reviewing coverage, costs, and needs rather than assuming yesterday's decision will always remain the right one.
Questions to Review During Open Enrollment
Before making a change, it can help to gather your Annual Notice of Change, current medication list, preferred pharmacies, doctors, specialists, and expected healthcare needs for the coming year. Then consider questions such as:
· Are my doctors and specialists still in network?
· Are my prescriptions still covered, and has the formulary tier changed?
· Have the premium, deductible, copays, or maximum out-of-pocket amount changed?
· Does my coverage work well if I travel or spend significant time outside my home area?
· Would switching between Original Medicare and Medicare Advantage create other insurance considerations, including Medigap eligibility?
· Could my income affect Medicare premiums through income-related surcharges?
Coordinate Medicare With the Tax Plan
Medicare and tax planning can intersect. Higher-income beneficiaries may pay income-related surcharges for Medicare Part B and Part D. Because those surcharges are generally tied to modified adjusted gross income from an earlier tax year, decisions involving Roth conversions, capital gains, retirement-plan distributions, or business income can sometimes affect future Medicare costs.
That does not mean people should avoid a good tax strategy simply to reduce a Medicare surcharge. It means the tradeoffs should be understood in advance. A Roth conversion, for example, may create higher taxable income today in exchange for potential long-term benefits. The right decision depends on the full plan, not one line item.
Healthcare Planning Is Also Life Planning
For many retirees, the real concern behind Medicare is not the insurance itself. It is the fear that a health event could disrupt the retirement they worked hard to build. No plan can remove every health risk, but thoughtful preparation can reduce uncertainty.
This is where financial planning and faith can work together in a healthy way. Faith is not the absence of preparation. Scripture repeatedly pairs trust with wisdom, diligence, and responsibility. Planning for healthcare is one way to care well for ourselves and for the people who may someday help care for us.
As you approach Open Enrollment, take time to review your coverage calmly. Avoid making decisions based only on advertisements or a single cost. Consider how the plan fits your doctors, prescriptions, travel, budget, taxes, and broader retirement priorities.
How Otium Can Help
Otium Financial Planners can help you understand how Medicare decisions interact with your retirement income, tax strategy, cash flow, and long-term financial plan. When appropriate, we can also coordinate with Medicare professionals and other members of your advisory team so important decisions are viewed together rather than in isolation.
The goal is not simply to choose coverage. It is to build a retirement plan that helps you use your resources wisely, protect what matters, and Live a Full Life.