http://www.benefitspro.com/2017/07/10/working-past-70-americans-cant-seem-to-retire
Working past 70: Americans can’t seem to retire.
August 2, 2017 by
Happy Birthday, You Qualify For Medicare. Now What?
July 11, 2017 by
Is long-term care insurance something you need?
March 29, 2017 by
Should You Enroll in Medicare If You Are Still Working?
March 3, 2016 by
The size of your employer is a key factor in determining the answer.
You’re turning 65 but still working and covered by your employer’s health insurance plan. Should you enroll in Medicare? The answer to that question is not as simple as it may appear.
The size of your employer could determine in part whether you enroll in Medicare Part B, which covers outpatient services. If your employer has 20 or more employees, your employer’s insurance will be your primary coverage. As long as you’re still working, neither you nor your spouse — if your spouse is older than 65 and covered by your plan — need to enroll in Part B. When you leave your job, you and your spouse can enroll in Part B during a special enrollment period, which lasts for eight months after you stop working.
You can always drop your employer coverage while you’re still working and enroll in Part B. (Stick with your employer plan if your spouse is not eligible for Medicare.) You should compare benefits and costs of your employer coverage and Medicare. If you’re considering traditional Medicare, consider costs for Part B, a Part D prescription-drug plan and a Medigap supplemental insurance plan.
If your employer has fewer than 20 employees, you should enroll in Medicare as soon as you are eligible because it becomes the primary payer. As secondary payer, your employer’s plan will not pay for any expenses covered by Medicare. If your spouse is on your employer plan, she or he can continue on your employer plan until age 65 as long as you keep the plan for yourself as secondary coverage. Here are other questions to consider.
If my employer is the primary payer, should I enroll in Part B anyway? It usually doesn’t make sense to pay premiums for both plans, unless your spouse needs coverage. Because of a complex formula that Medicare uses to determine how much it will pay for services when it’s a secondary payer, the program will not necessarily fill in all the gaps between what a provider charges and what your employer pays.
Should I keep my employer coverage if I work for a small company? Ask the employer’s insurance company what kind of gap coverage it offers as a secondary payer to Medicare. Smaller plans often limit the choice of providers. Unless your spouse needs coverage, you’re better off buying a private Medigap plan.
If I leave my job after 65 with retiree health benefits until I turn 70, do I need to enroll in Part B? Corporate retiree health benefits are always secondary to Medicare — even if you have not enrolled in Medicare. Retiree health plans differ on the amount of gap coverage they provide, so it’s a good idea to check with the benefits administrator. You may be better off with a Medigap plan. If your spouse is younger than 65 and on your employer plan, find out whether the retiree health plan will continue to provide full coverage.
Medicare Open Enrollment: Are You Ready?
September 15, 2015 by
More than 50 million people receive Medicare; but you have to be smart about the choices you make.
Source: Medicare.
Medicare covers more than 50 million recipients, with the vast majority 65 or older and relying heavily on the healthcare coverage it provides in their retirement years. Yet, Medicare actually involves some serious choices and, once a year, Medicare open enrollment allows participants to reconsider choices they’ve made about their coverage. This year, Medicare open enrollment runs from Oct. 15 to Dec. 7, with any changes you make taking effect on Jan. 1, 2016. Let’s take a look at some of the facts you should know when considering your best strategy for Medicare going forward.
1. Medicare doesn’t involve as many choices as private health plans
For many workers who get coverage from their employers during their careers, open enrollment is a stressful time in which you have to consider just about every aspect of health-insurance coverage. Different plans can vary in how they cover anything from routine doctors’ visits and basic medical services to high-cost hospital stays and chronic disease treatment. Choosing among all those options can be a tough call to make, with huge consequences if you’re wrong.
With Medicare, though, most of the basic benefits of the program are locked in if you choose traditional coverage rather than Medicare Advantage plans. Traditional Part A coverage of inpatient hospital care, skilled nursing facilities, and certain other intensive care tends to be straightforward, and Part B coverage for outpatient care, doctors’ visits, and other medical services also has fixed provisions. Unless you decide to seek alternatives to traditional Medicare coverage, you won’t have to do much with those key elements of the program.
2. Medicare Advantage plans have gotten more popular
Despite the coverage that traditional Medicare offers, it doesn’t cover all of your healthcare costs. That’s one reason why Medicare Advantage plans have gotten more popular, with about 30% of all Medicare beneficiaries participating in these types of plans. Some believed that Medicare Advantage plans would end up being uneconomical in light of healthcare reform; but, despite some regional squeezes, the overall number of plans available hasn’t fallen at a steep rate thus far.
Offered by private healthcare companies like UnitedHealth (NYSE:UNH), and WellPoint (NYSE:ANTM), Medicare Advantage plans typically offer managed care solutions. Integrated with prescription drug coverage under Part D, Medicare Advantage plans often require additional premium payments above what Medicare alone would charge; but, in exchange, recipients can get more extensive benefits under some policies.
Source: Medicare.
Participants can switch from traditional Medicare to Medicare Advantage, from Medicare Advantage back to Medicare, or among different Medicare Advantage plans throughout the open enrollment period. But because Medicare Advantage plans can be location-specific, you can also get permission to switch plans during certain special election periods if you move out of the service area that your current plan covers. By looking at your particular health needs, you can assess the best Medicare Advantage plans available to you, and often save money in healthcare costs as a result.
3. Be sure to look at Part D prescription drug coverage
Even if you’re covered by traditional Medicare, Part D prescription drug plans are still available. These plans can vary greatly in cost and services provided, with various plans even covering different individual drugs.
Because of the detail in which many Part D prescription drug plans go in describing covered drugs, it’s extremely important to look closely at the prescriptions you have, and make sure that they’re included in your current plan. Otherwise, you could be paying money for coverage that doesn’t give you the benefits you deserve. In addition, many Part D plans are eliminating features like zero deductibles and filling in gaps in coverage, which reduces premiums, but also forces you to pay more of your healthcare costs yourself.
Most older Americans rely on Medicare to cover most of their healthcare costs; so making the most of your benefits under the program is vital to your financial security. By knowing as much as you can about your options under Medicare open enrollment, you’ll be best able to get the most in benefits at the lowest possible cost.
Medicare Open Enrollment.
September 9, 2015 by
You only have one chance a year to make changes to your Medicare coverage. The annual Medicare open enrollment period is that chance.
Whether this is your first Medicare open enrollment or you’ve been doing it for years, it pays to take time each autumn and study your options. The number and types of plans available in your area change each year, bringing new options and eliminating previous options.
The benefits and costs associated with a plan you’ve had for years can change. This is your chance to do something about it.
When Is Medicare Open Enrollment?
Medicare open enrollment starts October 15 and ends December 7, Pearl Harbor Day. The changes you make during open enrollment take effect January 1 the following year.
You don’t have to wait until October 15 to start planning for open enrollment. You can start doing research on plan options when you get each year’s “Medicare & You” booklet in the U.S. mail or by email. The booklet alerts you to changes in Medicare that might impact your coverage or plan choices.
You’ll likely get information from you current Medicare Advantage and Medicare Part D drug plans as well as Social Security in the mail around that same time.
What You Can Do During Open Enrollment
- Switch back and forth between Original Medicare and a Medicare Advantage Plan.
- Switch from one Medicare Advantage plan to another.
- Enroll in a Medicare Part D drug plan.
- Switch from one Medicare Part D drug plan to another
- Drop your Medicare Part D drug plan completely, perhaps because you switched to a Medicare Advantage plan that includes drug coverage.
What if You Miss Open Enrollment?
If you miss open enrollment, you won’t be allowed to make changes to your Medicare coverage until next year’s open enrollment. Your current Medicare coverage choices will roll over to next year.
There are a few exceptions that will allow you to make coverage changes outside of open enrollment. Some things, such as moving outside of your Medicare Advantage plan’s service area, trigger a special enrollment period allowing you a brief period to make changes even though it’s not open enrollment.
From January 1 through February 14, you can change your mind about your Medicare Advantage plan and switch back to Original Medicare. You can’t switch to another Medicare Advantage plan or join an Advantage plan you don’t already belong to, though.
How To Prepare for Open Enrollment
- Gather information about your current coverage so you’ll be able to compare and contrast the new offerings with what you have now. You’ll need information on the premiums, deductibles, copay or coinsurance amounts, which of your drugs are on your plan’s drug formulary and how much they cost.
- Go to the Plan Finder tool at Medicare.gov to get information about which plans will be offered in your area next year, what they’ll cost and how their quality scores stack up.
- Compare what you have now with what you’d have next year if you kept the same coverage. Are your premiums or cost-sharing going up? Are your drugs all still covered at the same level on the plan’s drug formulary? Are your doctor and hospital still in-network if you have a Medicare Advantage plan?
- Look at the other Medicare coverage options in your community. Check the drug formulary of each plan you’re interested in. Do any of them have better coverage for your particular drugs? Can you find a plan with a lower premium but similar coverage? Can you find a plan with a similar premium but better coverage? Do the plans you’re considering have good quality scores? Make sure to check out Medicare Advantage and Medicare Part D provider networks to make sure you’ll be satisfied with the doctor, hospital and pharmacy choices.
How To Make Changes During Open Enrollment
If you decide to change your Medicare coverage during open enrollment, you have several options for how to do that.
You can sign up for most plans on the Medicare.gov website.
You can sign up with the plan directly by:
- Visiting its website
- Telephone
- Filling out a paper application and mailing or faxing it to the health plan
- Attending a community meeting put on by the health plan to educate Medicare recipients—and to market the health plan to them. Often, these plans will allow you to enroll in the plan during the meeting. Not all plans hold community meetings, and some communities don’t have any meetings.
How to Get Help
If you’re having difficulty understanding the rules of Medicare open enrollment, how to accomplish your Medicare open enrollment goals, or comparing plans, you have several resources for help. Learn more in “Get Help With Medicare Problems & Medicare questions.”
If you’re having trouble understanding how Medicare Advantage plan types differ, learn more in “HMO, PPO, EPO & POS—What’s the Difference & Which Is Best?”
If you need clarification about what a particular plan does or doesn’t offer, contact the health plan.
Yes, you need to signup for Medicare benefits.
September 7, 2015 by
It happened 50 years ago, today. On July 30, 1965, President Lyndon Johnson signed legislation to establish Medicare.
You probably know that your benefits start at age 65, but you need to sign up for them – and a lot of people don’t know that.
The Centers for Medicare and Medicaid Services want you to apply for your Medicare benefits three months before your 65th birthday, even if you’re not ready to retire yet.
If you don’t sign up at age 65, and you decide to enroll later, you may pay a lifetime late enrollment penalty and you may have a gap in medical insurance coverage.
You can sign up for Medicare online in less than 10 minutes. That’s a lot more convenient than going to the Social Security Office.
At that time, you’ll be asked if you also want Medicare Part B. This coverage helps pay for doctors’ services and many other medical services and supplies that hospital insurance doesn’t cover.
There are no forms to sign and in most cases, no documentation is required. Your Medicare card will arrive by mail.
The 5 Most Common Medicare Mistakes You Can Avoid.
July 30, 2015 by
Millions of Americans are currently enrolled in Medicare – and more than 10,000 new members sign up every day. Unfortunately, many of them fall into costly – and sometimes irreversible – pitfalls when they enroll.
The good news is the most common Medicare mistakes are easy to avoid if you know what to look for…That’s why we compiled this short list of the most common Medicare mistakes to avoid. Take a look…
List of 5 Common Medicare Mistakes
Common Medicare Mistake No. 1: Not opting for “Extra Help.”
There are billions of dollars devoted to programs to help retirees pay for their prescriptions, health insurance premiums, deductibles, and coinsurance. If your retirement income is thin, find out if you qualify for assistance.
According to the official Social Security website, “Medicare beneficiaries can qualify for Extra Help with their Medicare prescription drug plan costs. The Extra Help is estimated to be about $4,000 per year.”
Bottom Line: A little research into the “Extra Help” qualification could save some serious cash.
Common Medicare Mistake No. 2: Signing up at the wrong time.
Signing up for your Medicare plan too soon or too late can result in serious penalties. According to MyMedicareMatters.org, during your initial Medicare enrollment – the first time you sign up for the program – you can sign up for parts A, B,C, and D:
- During the three months before your 65th birthday;
- The month of your birthday; and
- The three months following your 65th birthday.
There can be long-term, irreversible effects of not signing up properly. The penalty rates vary. For example, the penalty for Part D late enrollment is equivalent to 1% of the cost of a standard Medicare drug plan premium for every month the enrollee delays enrollment. A May 5, 2013, Forbes article outlines how that penalty can play out…
Say a standard Medicare drug plan premium costs $46.00. One percent of that is $0.35. If a new enrollee forgot to sign up for coverage until his or her 66th birthday, that comes out to $4.20 in accrued penalty fees ($0.35 x 12 = $4.20).
The amount is tacked onto the enrollee’s monthly premium for life once he or she finally does sign up.
Bottom Line: Know your enrollment window ahead of time and don’t miss it.
Common Medicare Mistake No. 3: “Guessing” at what is the right plan.
Comparing every single plan available for you and your spouse can be very difficult and time-consuming. Sometimes the specifics of each plan are hard to understand. To the end, people grow frustrated and impatient and end up selecting a plan without thorough comparison.
But this isn’t something you should leave to guesswork. According to a June 10, 2015, article posted on the National Council of Aging’s website, someone about to select his or her plan should, at a minimum, answer the following four questions:
- Do I have health insurance from another source?
- Do I have any chronic conditions?
- Which doctors and hospitals do I use?
- Which prescriptions do I need and what pharmacies do I get them from?
Your answers will help you more quickly and accurately narrow down which Medicare plan is right for you.
Bottom Line: Don’t guess when it comes to choosing your plan.
Common Medicare Mistake No. 4: Ignoring Part D because you don’t take any prescription drugs.
Many people think, “Why pay Part D premiums if I don’t take prescription medicine?” The answer to this question is simple: Chances are you’re not psychic, so you don’t know what the future holds.
You may fall ill or get injured. And when you do, Part D provides coverage, but only the coverage you signed up for during the enrollment period. That means if you don’t have prescription coverage, you’ll have to wait until the next open enrollment (up to a year later) to make any adjustments. A March 7, 2014, AARP article advises readers to pick a plan according to the specific medications they’re currently on. And if you aren’t on any current medications, choose a plan that meets your current needs, as well as those you think may be in your foreseeable future.
Bottom line: Always have prescription coverage.
Common Medicare Mistake No. 5: Choosing Medicare plans solely based on premium amounts.
When comparing plans, investigate and learn about all out-of-pocket costs, not just the premium amount. Such costs include deductibles, co-payments, and more.
You see, while zero or low-premium plans seem attractive, expenses can show up elsewhere come time to pay the bill – and they prove ultimately more costly than a higher-premium plan.
Bottom Line: Study the components of each plan carefully, then decide what’s right for you
3 Medicare Enrollment Myths.
July 18, 2015 by
Medicare can be deeply confusing, and there are a lot of myths out there about how it works and what works best for a particular situation. Here are three myths that you need to watch out for to ensure that you don’t lose out on important coverage or get hit with big penalties.
Myth #1: I’m automatically enrolled
Unless you’re already getting Social Security or Railroad Retirement Board benefits when you turn 65, you will not be automatically enrolled in Medicare. You need to apply directly with Social Security to get on the books.
You can enroll anytime from three months before your 65th birthday month to three months after, meaning that you have a seven month period in which to choose the right plan for you. Part A is free, so it makes sense to sign up right away.
Of course, if you’re still working you might think that you don’t need Medicare Part B (which isn’t free), so there’s no point in enrolling. That brings us to myth number two:
Myth #2: I can wait to enroll
One thing you don’t want to do when it comes to Medicare is wait. Part A is free, so, again, no matter what your situation it makes sense to enroll right away.
When it comes to Part B, it generally makes sense to enroll as soon as you’re eligible, as making a mistake can be quite costly. Missing your enrollment can mean a permanent 10% annual increase in your Part B premium and a 1% monthly increase in your Part D premiums, which is probably not something you want to deal with.
What if you or your spouse are still working and have health insurance? In this case, check with your current provider to see how they work with Medicare. It might make sense to postpone — but don’t forget about signing up when you do retire. You’ll have eight months to do so.
Also, as a rule of thumb, if you work for a company with fewer than 20 people, it makes sense to sign up when you’re first eligible. That’s because smaller plans are allowed to drop you once you’re eligible for Medicare, and they might even refuse to pay Medicare-eligible claims.
If you’re retired and have health coverage, sign up anyway. This applies even if you have COBRA, a retiree health insurance plan, or veteran’s benefits. All of these plans become secondary plans once you’re signed up — and none of them exempt you from the late-enrollment penalties.
Myth #3: Once I’ve signed up, I’m done
While Parts A and B cover a fair amount, neither has out-of-pocket limits. That means that the 20% of costs you’re responsible for under A and B could add up to a lot of money should you need extensive treatment. This is the main argument for getting Medigap’s supplemental coverage or signing up for an Advantage plan.
But even here, it’s important to keep an eye out for gaps in coverage.
The Part D donut-hole is a great example. Part D provides for prescription drug coverage, but once you and the insurance company have collectively paid a certain amount on prescription drugs ($2,960 in 2015), you become responsible for significantly more of the cost — 45% of brand name drugs and 65% of generics. Once your out-of-pocket spending reaches $4,700, the donut-hole closes and you’ll pay a small amount on drugs for the rest of the year.
In other words, take the time to do your homework. Don’t just stop at Parts A and B, and remember to note the deductibles, premiums, and coverage limits in the plans you’re reviewing. Taking the time now can save you a lot of stress down the line.
Medicare Part B premiums increasing up to 30%.
May 12, 2015 by
When the Medicare Access and CHIP Reauthorization Act of 2015, commonly known as the “doc-fix” legislation, becomes law, some Medicare participants will pay 30% more for their Part B premiums. The legislation, which was decisively passed by the House on March 26 and the Senate on April 14 is expected to be signed by President Obama soon.
The bill replaces the current physician Medicare reimbursement schedule with payment increases for doctors for the next five years. It will be financed by higher Medicare Part B premiums for individuals whose income exceeds specified thresholds beginning in 2018.
Lower to moderate income households unaffected
Medicare Part B covers doctor and outpatient visits. Premium amounts are determined using modified adjusted gross income, or MAGI, per one’s federal income tax return two years prior to the current year. MAGI is adjusted gross income plus tax-exempt interest.
There are currently five MAGI brackets. Each of the married filing joint bracket amounts is double the corresponding single bracket amounts. Annual premiums range from $1,258.80 to $4,028.40 per person depending upon your bracket.
Individuals in the first two brackets, that is, those whose MAGI doesn’t exceed $107,000 using single filing status or $214,000 filing joint, will continue to pay the premiums they’re paying now.
New income bracket
The third MAGI bracket, which is currently $107,001 up to $160,000 for single individuals, with an associated annual Part B premium of $2,517.60, will be split into two brackets with a premium of $3,272.40 for the fourth bracket per the table below. Per the table, single individuals with MAGI between $133,501 and $160,000 will pay an additional $754.80, or 30%, for their Medicare Part B premiums beginning in 2018.
An annual premium of $3,272.40 is currently paid by single individuals whose MAGI is between $160,001 and $214,000. Beginning in 2018, those who fall into this bracket will pay $4,028.40. This represents an increase of $756.00, or 23.1%. The top premium of $4,028.40 is currently paid by single and joint filing status individuals whose MAGI exceeds $214,000 and $428,000, respectively.
Medicare Part D prescription drug premiums
The new Medicare Part B income brackets will also apply to Medicare Part D prescription drug premiums beginning in 2018. Once again, single individuals with MAGI between $133,501 and $214,000 will be affected as will joint filers with MAGI between $267,001 and $428,000.
The Part D premium increases for individuals whose income falls into the foregoing ranges will vary depending upon the specific Part D plan. While the monthly amounts are less than those for Part B, the percentage increases for affected individuals will be as much as 61%.
Income brackets not adjusted for inflation
Individuals who are impacted by the income bracket changes and associated higher premiums will initially be in the minority. More people will be adversely affected each year going forward, however, since the new legislation includes no provision for income bracket inflation adjustments.
Narrower brackets that would result in significantly greater numbers of individuals paying higher Medicare Part B and D premiums are a distinct possibility in the future. Had a bipartisan committee proposal been enacted, the top end of the lowest MAGI bracket would have been reduced for single and joint filing taxpayers from $85,000 and $170,000, respectively, to a maximum of $45,000 and $90,000, respectively. The other MAGI brackets would have seen similar reductions.
Look for planning opportunities
Given the fact that Medicare Part B and D premiums are determined by one’s income, it’s important to be aware of the various income thresholds and plan accordingly. Any reduction in Medicare premiums should also result in a reduction in income tax liability since both are income driven.
Finally, given the fact that 2016 MAGI will be used to calculate 2018 premiums, it isn’t too early to start planning. This includes individuals who are turning 62 in 2015 since they will be eligible for Medicare in 2018.