Here is a guide that United HealthCare issues in the month of June. Â June is Men’s Health Awareness Month.
3 Common Medicare Questions
This is always a popular topic; it seems we get calls about this weekly. Â Here are three common questions. Â
1 – When Should I Apply?
Medicare eligibility begins when a person turns 65, or has a qualifying disability. Â
Applicants should start applying for Part A of Medicare the three months prior to a client’s 65th birthday, as well as that month, and three months after. Â However, if you’re already receiving Social Security, you will automatically be enrolled. Â
2 – Do I Need Part B?
When to apply for Part B is a bit more complicated. Â Late enrollment into Part B may result in paying a higher premium. Â Â
If you don’t have employer group coverage, then you should apply during your seven-month initial enrollment period.
If you are covered under a group health plan, you may qualify for a special enrollment period. Â If this is the case, you can delay enrolling in Pat B until your group health coverage is terminated, and avoid the late enrollment penalty. Â Â
The eight month special period starts the month after the end of either employment or the group health insurance coverage based on that employment – whichever happens first. Â
Please remember, COBRA coverage doesn’t qualify as employer coverage, and won’t allow you to escape the penalty for delayed enrollment. Â
Another thing to keep in mind is that some employers (mostly small) may require Part B coverage to be integrated with their existing insurance plans. Â Large employers may not have this requirement. Â
3 – Supplement or Advantage Plan? Â
Medicare Supplement policies provide additional benefits that can reduce out-of-pocket costs when combined with Parts A & B. Â They’re provided by private insurance companies and require additional premium payments. Â These typically exclude prescription benefits, so for this reason you may want to pick up a Part D plan. Â
Advantage plans combine Medicare Part A, B and sometimes D. Â These policies bundle coverage into a single Medicare approved health plan offered by a private insurance company. These plans tend to feel more like traditional employer health plans. Â
I hope this helps!
Qualifying for a Subsidy May Make You Ineligible for an HSA Plan
If someone buys a Health Savings Account (HSA) plan, federal law requires that health plan to have a deductible of at least $1,250 per individual and $2,500 per family. Â
If you select a Silver level HSA plan on the exchange, if you receive special discounts, those discounts may make you ineligible for the HSA.
These special discounts will decrease the deductible and out-of-pocket costs. Â Sometimes a subsidy can decrease these amounts enough to drop them below the federal government’s minimum deductible threshold for HSA eligibility. Â If this happens, you will become ineligible for the HSA feature, but automatically enrolled in the base plan without the HSA component. Â Unfortunately at this time there is no notification from the Exchange to alert the customer to this problem. Â
If this happens to you, just realize you can keep your plan, but not the HSA feature. Â
If you want the HSA feature, you will have to wait until the next open enrollment period to select a qualified plan. Â
Some of this information was taken from an email I received from Anthem. Please consult with your tax advisor, and your insurance broker for your specific situation. Â Â
Keeping Your Plan Until 2017
On Wednesday, March 5th, the Obama Administration announced a 2 year extension to the policy that if your individual or small group plan was due to be cancelled in 2014 as a result of the essential health benefit benchmarks and other market reform requirements imposed by PPACA, you would be able to keep it, as long as your state insurance commissioner and the carriers in your state say it’s ok.
This policy only applies to existing policies. Â All newly sold coverage will have to meet all of the market reform requirements and other benchmarks imposed by PPACA (or ACA or ObamaCare).
Here in Kentucky, when this was announced last November for the first extension, we were allowed to do so. Â However, the state of Indiana didn’t allow it. Â We are still waiting to hear from our carriers if this will be allowed a second time.
 This is a political move by the Democrats with the mid-term elections coming up.  Pricing for renewals will be coming out in July/August of this year, which probably won’t be favorable.  Plus, if last week’s Florida election was any indication, then it may be too little too late.
Which Asset Will you Sell First?
“According to Prudential Group Insurance, a business of Prudential Financial Inc., at least 60% of men and 80% of women will need to pay for long-term care at some point in their lifetime, and the related expense is likely to damage retirement savings and independence. “
This was taken from a story I read today about Long-Term Care, and the likelihood that someone you love, or yourself will need some type of care at some point in their lifetime.
There are plenty of options available to Americans today. Â There are the traditional policies that give you a daily/monthly benefit. Â There is also a new kind of policy that is based on the idea of self-funding your care.
If you don’t plan for Long-Term Care by purchasing a policy, the question is: Which one of your assets would you sell first when you need some type of home health care, or care from a facility?
Please reach out to us if you would like more information, including the tax favored treatment of long-term care insurance.
Here is a link to the article:
http://www.planadviser.com/Longer_Life_Means_More_Financial_Strain.aspx?p=2