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If you thought shopping for those perfect holiday gifts for the kids and Uncle Fred was stressful, try shopping for Medicare. Without some thoughtful guidelines, that year-end exercise could be even more stressful 鈥� especially because experts say that not shopping around could cost people money.

Rising health care costs are a big concern for all of us, but they pose a bigger threat to both the physical and financial health of retirees or people who are approaching retirement. Because so many people are confused about where to begin, here are a few guidelines.

Medicare鈥檚 annual open enrollment period lasts through Dec. 7. It invites more than 50 million people, mostly seniors, to enter the complex world of Medicare health insurance 鈥� parts A, B, C and D, drug formularies, coinsurance, changing co-pays and deductible rules, and an expanding assortment of change related to health care reform.

Faced with such daunting decisions, it鈥檚 little wonder that so many seniors simply stick to their existing coverage rather than research and possibly find and switch to something more suitable. This inaction is often the result of inertia, procrastination or even fear.

Whatever the reason, it鈥檚 important to remember that just because a health care plan was a good fit in 2012, it may not be the most appropriate choice in 2013. Re-evaluating coverage annually can make the difference of hundreds of dollars in out-of-pocket costs.

While the Medicare Advantage plans project moderate increases for 2013 (visit www.aarp.org), prescription drug plans could leave a sting with seven of the top 10 stand-alone drug plans raising premiums by double digits. Even though there are new prescription drug plans coming into the market that offer lower premiums, it鈥檚 up to the consumer to be proactive when making comparisons.

Consumers also must look beyond the premiums and read the 鈥減roverbial fine print.鈥� The ancient Romans had a phrase for it: 鈥淐aveat emptor鈥� (鈥淏uyer beware!鈥�). Pay attention to the details. What are the restrictions? Does the plan limit you to one month鈥檚 supply at a time? If so, you鈥檒l face a co-payment every time you order. Does the plan require that the insurer get approval before a particular medication is covered?

Take note of the co-pays and deductibles, as well as plan formularies 鈥� the long list of drugs covered under the plan. Beware of new plans that start with low 鈥渢easer鈥� prices to lure you in, only to raise them incrementally. Some of the cheaper plans can even limit pharmacy choices.

On a positive note, the so-called 鈥渄oughnut hole鈥� in drug coverage, which is set to shrink gradually until it鈥檚 eventually terminated in 2020, will be slightly reduced in 2013. Specifically, in 2012 consumers got half off for branded drugs and 14 percent coverage of generics. In 2013 the new rates will be 52.5 percent off for branded drugs and 21 percent coverage of generics.

The new offerings of 2013 Part D prescription drug coverage and private insurers鈥� Medicare Advantage plans are now posted on the Medicare website, including rankings on quality-of-care and patient satisfaction measures.

On the website, plug in the member鈥檚 Medicare number. Visitors are prompted to enter a list of the various drug names along with the prescribed dosage. The site will then display:

• a list of possible plans
• estimated plan costs
• premiums and deductibles
• a list of drugs covered
• customer satisfaction ratings

To make things even more complex, it鈥檚 estimated that nearly 80 percent of citizens underestimate their health care costs in retirement. It might be worthwhile to sit down with a financial adviser and ask for a comprehensive evaluation. There鈥檚 no need to try and navigate these waters alone.

Judith McGee is the chairwoman and CEO of McGee Wealth Management Inc., an independent registered investment adviser. She is a co-branch manager of, and offers securities through, Raymond James Financial Services Inc. in Portland. Contact her at 503-597-2222 or [email protected]. Any opinions expressed are not necessarily shared by RJFS or Raymond James. Information herein is from sources believed to be reliable, but accuracy and completeness cannot be guaranteed.