Let's try to change that thinking with an FAQ that covers nine basic questions about Medicare. You can communicate them to clients using simple language, modeled below. The FAQ includes links to more information if you want to go deeper.

1.  How do I start making Medicare decisions?

In your calendar, draw a circle around the third month before your 65^th birthday. That's the first date you can sign up for Medicare Parts A and B, if you are not already enrolled. You may be enrolled if you already have started receiving Social Security benefits. If not, you can sign up for Medicare at your local Social Security office or online here: http://www.socialsecurity.gov/medicareonly

Medicare Parts A (Hospital Insurance) and B (Medical Insurance) together form "original Medicare," and that's where you should focus first. If you file a timely application at least two month before your 65^th birthday, both parts should begin on the first day of the month in which you turn 65. Part A is free for qualifying individuals and Part B costs most people $104.90 per month in 2014. If you start Medicare before Social Security benefits, premiums will be automatically deducted from an account you identify.

2.  Why might my Part B premium be higher than $104.90 per month? If so, does it still pay to choose Part B?

If the modified adjusted gross income (MAGI) you reported on your federal tax return two years earlier (i.e., in 2012 for 2014 Medicare purposes) is above $85,000 for an individual or $170,000 for joint filers, you will pay more for Part B than $104.90 per month in 2014. There are four MAGI tiers, each with graduated premiums, topping at $335.70 per month for very high incomes. The full premium schedule for 2014 is here: http://www.medicare.gov/Pubs/pdf/11579.pdf

You should choose Part B when you turn age 65 for several reasons. First, even if you must pay higher premiums, it's still not a bad deal. The highest monthly premium ($335.70) is designed to cover 100% of Part B's actual cost. Second, you must have both parts (A & B) to qualify for Medigap coverage. Third, if you do not choose Part B by the third month after the month in which you turn age 65, your premiums will be permanently higher. Finally, you can always change your mind and cancel Part B later, if that's what you really want.

3.  Do I need a Medicare Supplement ("Medigap") policy right away?

Yes, it's a good idea. Otherwise, you are vulnerable to paying out-of-pocket for gaps in original Medicare. Medigap is not hard to evaluate and buy, and there are protections during the initial Open Enrollment Period. This period begins on the first day of the month in which you are age 65 and are enrolled in Medicare Part B, and it ends six months later. During this period, you can't be denied coverage or charged a higher premium for pre-existing conditions or for health/lifestyle reasons.

Every year, you will have an opportunity to switch Medigap plans during an annual Open Enrollment period from October 15 to December 7, if better plans or prices come along. However, the protections described above will no longer apply.

4. Which Medigap plan should I choose, and what should I expect to pay?

In all states except Massachusetts, Minnesota and Wisconsin, Medigap programs fall into one of 14 standard designs identified by letters A through N. (These three state have their own Medigap systems and nomenclature.) In 2010, new sales of plans E, H, I, and J were discontinued. Therefore, only 10 standard plans remain available for new sales – A, B, C, D, F, G, K, L, M and N. Plan F is available in both a standard and high-deductible version.

The basic Medigap policy (Plan A) usually is the least expensive – typically costing about $130 to $260 per person per month. Premiums are influenced primarily by the cost of health care delivery in the plan's geographic coverage area.

Premiums can be fairly low in the high-deductible version of Plan F, and also in Plans K and L, which pay only 50% (Plan K) or 75% (Plan L) for several benefits. The most expensive plans are those that cover the spectrum of benefits – Plans D and G.

Although standard designs make it easier for consumers to comparison shop, premiums can vary widely for the same plan. The average annual premium paid for Medigap in the U.S. is about $2,000 per person.

If you are in doubt about the best design, give special consideration to Plans F (standard) and C. These are the most popular design choices, selected by 51% and 14% of the market, respectively.  They offer comprehensive benefits, and their popularity helps to increase scale and make premiums more affordable.

Weiss Ratings offers a free Medicare Power Planner tool that you can use to see the range of Medigap prices in your zip code, for all plan designs: http://medicare.weissratings.com/save-on-medicare

5.  Should I choose a Medicare Prescription Drug Plan (Part D) immediately at age 65?

Yes, in most cases. The 2014 Part D National Base premium is $32.42 per month, but each plan is allowed to charge competitive rates, which vary by region.  As with Part B, premiums go higher in four higher tiers of MAGI. Part D is heavily subsidized by the federal government, with premiums covering only about 11% of the program's costs, so it's a good deal for most retired people. Under the PPACA, enhanced Part D benefits will phase in gradually through 2020, so benefits will keep getting better. If you don't participate in Part D by the third month after the month you turn age 65, your premiums will go permanently higher (as in Part B).

If you make a mistake in choosing a Part D plan at age 65, you can shop around and switch plans each year during the Open Enrollment period from October 15 through December 7. Part D plans have become a very competitive market, with Wal-Mart competing aggressively on the low-price end, and it pays to shop for the best deal available each year. If you do not need many prescription drugs at age 65, one strategy is to choose the lowest-cost Part D plan as a placeholder, to prevent future premiums from going higher. If you get sick and need more prescription drugs at an older age, you then can upgrade to a more comprehensive plan.

6.  What is Medicare Advantage (Part C)?

Part C was authorized by Congress in 1997 and expanded under the Medicare Prescription Drug, Improvement and Modernization Act of 2003. It creates a choice that is now available to virtually all Medicare participants, allowing participants who have Parts A and B to receive treatment through private health insurance plans. The premiums charged by these plans are paid directly by Medicare, and some Medicare Advantage plans add an additional direct premium paid by members. Almost 12 million people, about 25% of all Medicare participants, now choose Part C.

Medicare Advantage plans must provide all benefits of Part A and Part B coverage, including emergency and urgent care. They also may add extra benefits not included in Parts A and B, such as prescription drug, vision, hearing, dental, and wellness programs. People who participate in Medicare Advantage do not need separate Medigap coverage, and by law Medigap can't be sold to Medicare Advantage participants.

7.  Are there any drawbacks to Medicare Advantage plans?

Yes. Medicare Advantage plans may have different deductibles and co-pay arrangements than original Medicare, and they may charge extra premiums. Their out-of-pocket costs probably will increase in the future due to changes mandated by the PPACA.

As Medicare Advantage participation has steadily increased, the cost of the "Part C subsidy" has escalated for the U.S. Government. The government now estimates that its cost per Part C participant is about 13% higher than in traditional Medicare.  The primary cause of higher cost is the county-level benchmarking formula Medicare uses to reimburse private health care organizations. Benchmarking rates for Part C are up to 40% above comparable fee-for-service cost, effectively creating a government subsidy for Medicare Advantage.

The PPACA will pare back the benchmark rates to between 95% and 115% of fee-for-service costs, which is expected to save Medicare $136 billion over a decade. However, it also will cause Medicare Advantage plans to whittle back benefits and increase co-pays and deductibles. The Congressional Budget Office has projected that benefit cuts and fee increases will cause enrollment in Medicare Advantage to decline by 35-50% over several years. As economies-of-scale decline, Part C costs will rise even further.

8.  Are Medicare and Medigap premiums deductible?

For taxpayers who itemize income tax deductions, Medicare Part B and D premiums, Medigap premiums and any out-of-pocket costs are deductible to the extent that they exceed 7.5% of adjusted gross income (AGI). Since 2010, the IRS has allowed self-employed individuals to claim Medicare Part B and D premiums for purposes of the self-employed health insurance deduction, to the extent that premiums exceed net income from self employment less 50% of the self-employment tax and any retirement plan contribution.

9.  What's a smart plan for starting Medicare at age 65?

For most people it is: 1) Apply early, three months before the 65^th birthday; 2) Participate in Parts B and D; 3) Choose affordable plans for Medigap and Part D; and 4) Keep shopping for better Medigap and Part D coverage and, if warranted, switch plans during the first Open Enrollment period. Expect to spend about $3,000 to $4,000 per person per year for the full package, and recognize that comparable private insurance would cost three to four times more (depending on your age). The Medicare trust fund is scheduled to run out of money in 2026, so it's also smart to expect the total cost of a Medicare/Medigap package to increase gradually during retirement, as seniors are forced to pick up a larger share of the tab.