Recent Updates RSS Hide threads | Keyboard Shortcuts

• Medicare Part D Rates Stable, Still Wise To Shop

  8:04 am on August 19, 2010 Permalink | Reply
  

  Some good news for Medicare beneficiaries…your rates for Part D Prescription Drug insurance should be pretty much the same in 2011 as in 2010. 

  The average monthly premium will be about $30 compared to $29 in 2010. 

  Of course averages are just that averages – so some people will see smaller increases while others may see their rates increase more.  It all depends on your plan which is why it’s smart to shop and compare your current plan to the new plans when the information comes out in October, 2010. 

  CMS (The Centers for Medicare and Medicaid Services) has not yet released information on  Medicare Advantage plan rates for 2011.  There has been speculation that those plans could see significant changes in rates and/or benefits, but we’ll have to wait and see. 

  The monthly Part D premium should not be the only driver in your decision on which plan to choose.  Watch for changes in the formulary (drug list) which tells how much you will pay out-of-pocket for your medications.  Plans may shift drugs between tiers which can increase or decrease your co-pay( out-of-pocket rates). Also if you’ve changed the  medications you use regularly, you’ll want to see if your current plan is still the right plan when you consider both the premium and out-of-pocket costs. 

  As a reminder for those who currently have a Part D or Medicare Advantage plan.  Changes to these plans can generally be made only during the Annual Enrollment Period (AEP) from Nov. 15 – Dec. 31 in 2010 for plans effective in 2011.  Here’s the schedule leading up to AEP: 

  September –Information about premium and benefits for each Part D and Medicare Advantage plan becomes available

  October – More detailed plan information is available so that you can begin comparing plans

  Nov. 15- Dec. 31 – applications for plans effective in 2011 can be accepted 

  So make sure to mark your calendar for early to mid-October to start comparing plans.  while you can’t buy until November, you’ll give yourself some time to compare plans and think about the right plan for 2011.

  Here’s the statement from Medicare on part D premiums for 2011.  

  “Most Medicare prescription drug plan premiums should remain relatively stable next year, and all beneficiaries should compare their coverage under their current plan with the plans that will be offered in 2011 when that information becomes available in October,” said Jonathan Blum, deputy administrator of CMS’ Center for Medicare. “The Affordable Care Act improves the value of drug coverage people with Medicare will receive next year, providing discounts on brand name drugs and coverage of generics in the coverage gap, or donut hole.”

   

  Reply Click here to cancel reply.

  Name (required)

  Email (required)

  Web Site

   
• What’s a “need” or a “want” in retirement?

  7:13 am on August 17, 2010 Permalink | Reply
  

  At this point in our lives we know that Budgeting 101 requires distinguishing between a “need “and a “want.”  That concept becomes even more important as you plan for retirement and a fixed income. 

  After all the media portrays a retirement filled with luxury yet the question for many near and current retirees is how to make sure the fixed income you have will cover the needs for a lifetime.  The recession has brought that home for many of us, yet still there’s a yearning for that dream retirement. 

  A new research report says baby boomers who are not yet retired are willing to forgo some luxuries now to have a more comfortable lifestyle in the future. 

  So, what do they consider basic needs? It sure goes beyond food, clothing and shelter. 

  Among the must haves: healthcare coverage, Internet connection, shopping for birthdays and special occasions and pet care.  About half of those surveyed said they also consider an annual family vacation or weekend getaways, having eldercare/home aid, professional hair cut/color and funding children/ grandchildren’s education to be basic needs as well. 

  Basic needs?  Here’s what might be happening. 

  “An interesting pattern that we noticed throughout the research was that as consumers age, things that were once considered luxuries are more likely to be considered basic needs–thereby reaffirming that Boomers essentially want it all,” said Matthew Leung from MainStay Investments which sponsored the research.  ”In fact, almost half of consumers (47 percent) say they would downsize their home in retirement in order to afford these luxuries.” 

  One thing these boomers got right is that health care is a need not a want. 

  Virtually all Baby Boomers (98 percent) said healthcare coverage is not a luxury, but a very basic need—and a need that they are extremely concerned about being able to afford.  Almost three- quarters of respondents (74 percent) rated healthcare costs as either their greatest concern or their second greatest concern. 

  “While a majority of consumers are setting aside funds specifically for future healthcare costs, a whopping 41 percent are not doing anything specific to save for healthcare, and will be relying on their retirement assets to cover healthcare and everything else,” said Leung. “Given their lack of allocating pre-retirement income toward these looming costs, we find Boomers’ actions do not always reflect their greatest concerns.” 

  We find that many people are surprised by the cost of Medicare insurance when they reach 65 and the cost of long-term care. 

  So as you are planning for retirement – or in retirement reassessing your budget – take a close look at what is really “need” and ‘want.”  Budget for the needs; be realistic about the “wants”.   Maybe on thing the recession is teaching us is that “need” list is really over-packed. 

  Share what’s shifting in your “wants” and “needs” as you prepare for or live in retirement.

   
• Medicare Questions and Answers

  9:20 am on August 13, 2010 Permalink | Reply
  

  Medicare Questions

  The New York Times blog “Bucks” just ran a great 3-part series of questions and answers about Medicare.   

  You can find them here.

  The expert answers were provided by the Medicare Rights Center and cover the basics to some very specific questions about benefits and coverage for the disabled. 

  Whether you are new to Medicare or a Medicare beneficiary who has questions about coverage or getting ready for the annual election period (AEP), you’ll find the information helpful. 

  If you like to plan ahead, the AEP is Nov. 15 – Dec. 31, 2010 for policies that will be effective in 2011.  For most of those with Medicare Advantage plans and Medicare Part D plans this is the one time of the year when you can change your coverage (there are some exceptions like if you move or your employer retiree insurance is cancelled). 

  Experts say that comparing your current Medicare plan to other plans may be especially important this year as some plans could see major changes in prices and benefits.  It’s a good idea anyway to check your plan each year if you buy your own policy to make sure the rate is competitive and the polilcy still fits your health care needs.

  Plan information and prices for policies effective in 2011 aren’t available yet.  You’ll have to wait until October. 

   But if you’ve got general questions, now is the time to start reading up on Medicare.  Or post them here and we’ll help you find the answers.

   
• The State of Social Security and Medicare

  1:08 pm on August 9, 2010 Permalink | Reply
  

   Medicare and Social Security are in pretty good shape according to the 2010 Annual Report of the Trustees.  That’s good news for all of us.  But especially those who are retired or close to retirement and counting on specific benefits from both programs. 

  The report said that Medicare is looking much healthier, thanks to the changes in the health care reform bill that reduces costs for prescription drugs and physician services..  The Hospital Insurance trust fund is expected to remain solvent an additional 12 years – until 2029.  While Medicare finances have improved, further reforms will be needed. 

  It is not quite so rosy a picture for Social Security, but there’s no reason for alarm.  The recession created a double-whammy of fewer workers and more early retirees.  So Social Security expenditures are expected to exceed tax receipts in 2010 for the first time since 1983.  Read the full report here. 

   “The fact that the costs for the program will likely exceed tax revenue this year is not a cause for panic but it does send a strong message that it’s time for us to make the tough choices that we know we need to make,”  said Michael J. Astrue, Commissioner of Social Security. 

  The report said that the deficit is expected to shrink substantially for 2011 and to return to small surpluses for years 2012-2014 due to the improving economy.   But as the baby boomers begin retiring in larger numbers in 2014 the number of beneficiaries grows substantially more rapidly than the number of covered workers. That’s the problem we’ve been talking about for years – too few workers to support the number of retirees.

  So for those nearing retirement, counting on Social Security at current levels sounds pretty safe.  But, the changes will continue to come in Medicare to keep the program financially sounds.  That means it will be more important than ever to review your Medicare insurance plan each year. Expect that to be particularly true for Medicare Advantage and Medicare Part D plans.

   
• Faces You Know on Medicare and Social Security

  7:39 am on August 4, 2010 Permalink | Reply
  

  Both Medicare and Social Security have turned to familiar faces to tell their story.

   Andy Griffith, Patty Duke, Chubby Checkers.  You know the faces…and the songs!

  As part of the recognition of the 45^th anniversary of Medicare,  a new public service announcement was released by the Centers for Medicare and Medicaid Services (CMS) staring Andy Griffith.  You likely remember him from The Andy Griffith Show and Matlock.   

  The commercial highlights the new services Medicare beneficiaries will receive thanks to health care reform including free checkups, lower prescription drug costs and continuing crack down on Medicare fraud.

  Here’s a link to the Andy Griffith Medicare public service announcement.

   The new advertisement will begin running immediately on national cable television stations.  The advertisement is part of CMS’ efforts to educate and inform people with Medicare and their family members about the many changes and improvements to the program’s various options in advance of Medicare Open Enrollment. 

  A new report from CMS reports that savings to Medicare will rise to more than $575 billion over the next decade.  These reforms include new provisions that will improve the quality of care, develop and promote new models of care delivery, appropriately price services, modernize the health system, and fight waste, fraud, and abuse.  The Affordable Care Act is projected to more than double the life of the Medicare Trust Fund, extending its life from 2017 to 2029. 

  Social Security has been using celebrities to draw attention to signing up for Social Security online.  For many people, a long wait at the Social Security is no longer necessary to sign up for Social Security benefits.  When it launched the Patty Duke commercial in 2009, Internet application jumped 9% in the next 30 days.   Click here to find the video of Patty and Chubby

  There’s something comforting about seeing those familiar faces delivering important messages about Social Security and Medicare.  And I find myself humming those opening tunes for their old TV shows – funny what gets locked away in the brain? 

  What do you think about celebrities in public service announcements for Medicare and Social Security?

   
• 4 Tips to Compare Medicare Supplement Plans

  7:10 am on July 21, 2010 Permalink | Reply
  

  The first rule in looking at a Medicare Supplement plan:  you must shop around.

  That’s because the rates can vary substantially from insurance company to insurance company.  But, the plan benefits are identical because they are standardized by the government.

  So in a nut shell – the insurance companies must offer the same plan benefits, but can set their own rates.  So that makes it really easy to shop and compare! 

  And while there is more to a Medicare Supplement plan than the rate – you want to know the company is stable, has a good track record on paying claims and good customer service if you need it– the monthly premium is a good way to begin to separate the choices. 

  Medicare supplement plans cover the “gaps” in Medicare – so when Medicare pays 80% of your bill, rather than pay the remaining 20% out of your own pocket, a Medicare supplement (Medigap) plan picks up that 20%.  It pays when Medicare pays.  So if Medicare doesn’t cover it, your Medicare supplement plan doesn’t either. 

  Generally you can select your own doctors and don’t have co-pays.  Two new plans introduced in June – Plan M and Plan N – vary from the standard Medigap plan and may require co-pays, deductibles or a network – so check  your total costs carefully if you look at either of these two plans.  

  So if you think a Medicare Supplement plan might be right for you, here are four tips when shopping for a Medicare supplement plan:

  • Check prices from at least 3 different companies.  The plans are lettered (Plan A, Plan F, etc.) so it is easy to compare a plan F to another Plan F. It can save you hundreds of dollars a year in premiums.
  • If you are moving, don’t assume that the company you have is the best rate in your new location.  Some carriers have preference for some states over others.  And there might be some regional carriers you didn’t have a choice of in your old location.
  • If you are healthy and willing to share some of the health care cost risk (pay copays and deductibles), the new Plan N is a plan to look at.
  • Medigap plans don’t cover your prescription drug costs.  You’ll need a Part D Prescription drug plan for that.  And that can be a different insurance company, so shop and compare that plan too.(more on Part D later)

   Resources: 

  Medicare.gov 

  Longevity Alliance – more than 20 different insurance companies – MedSup, Medicare Advantage and Medicare Part D plans. 1-800-713-6250

   Related MomentumToday article:

  Deductibles and Copays

   
  • 

    Medicare Supplement 6:17 am on July 22, 2010 Permalink
    

    There is a good chart for Medicare Supplemental Insurance plans at http://www.mysenioradvisorsgroup.com/MedicareSupplementalInsuranceCenter.html

• Life in the 70s. What’s Aging Look Like?

  8:05 am on July 13, 2010 Permalink | Reply
  

  Remember the question from the Beatles song…will you still love me when I’m 64?

  Well what about 74?  What does life look like in the 70s?  

  A New York Times article paints a picture of the diverse lifestyles of those their 70s.  And two of the defining factors that become more prominent in how you live are financial security and good health. 

  We’ve highlighted the chart in this article but recommend reading the article if you’re interested in how society’s attitudesof aging are changing.  and some good food for thought about your life in the 70s.

  Whether you look at the positives or the negatives of living longer , it’s clear that good financial planning and healthy living can give you more options in later life.

  What do you think about your life in the 70s?

   
  • 

    Dave 7:25 am on July 20, 2010 Permalink
    

    Excellent information across the board! The breadth of your categories and the content are very informative and I will be keeping up with your posts. I have added your blog to my blogroll as I believe readers can benefit from what you are discussing. Keep the good posts coming!
    Dave Bernard

• Medicare Insurance: Know How Cost Sharing Works

  9:50 am on July 10, 2010 Permalink | Reply
  

  Knowing how your health insurance works and what your part of any medical cost will be is important at any age.  But once you are living on a fixed income, understanding what Medicare covers and what you have to pay at a doctor’s office or at the hospital or for prescription drugs is critical. Your budget depends upon it!

  When it comes to figuring out Medicare coverage understanding the difference between a co-pay and co-insurance is a good place to start.  This article from the New York Times has some helpful information, especially when it comes to employer plans. You might want to pass it along to someone figuring out their workplace health insurance.

  The same basic concepts apply in Medicare – but how they apply to different types of plans is important to know. So let’s take a look at the basics in figuring out your cost of care: co-insurance, co-payment and deductible (we’ll cover insurance premiums in a later post.)

  Deductible is the amount you must pay for health care or prescriptions, before Original Medicare, your prescription drug plan, or other insurance begins to pay. For example, in Original Medicare, you pay a new deductible for each benefit period for Part A, and each year for Part B. These amounts can change every year.

  Co-insuranceis the amount you may be required to pay for services after you pay any plan deductibles.  In Original Medicare, this is a percentage (like 20%) of the Medicare approved amount. You have to pay this amount after you pay the deductible for Part A and/or Part B. In a Medicare Part D Prescription Drug Plan, the coinsurance will vary depending on how much you have spent (the doughnut hole issue.) so, if the procedure is $100, Medicare pays $80 and you must pay $20.

  Co-payment (co-pay) on the other hand is the amount you pay for each medical service, like a doctor’s visit, or prescription. You’ll find this most frequently in Medicare Advantage plans and Medicare Part D plans. A co-payment is usually a set amount you pay. For example, this could be $10 or $20 for a doctor’s visit or prescription. Co-payments are also used for some hospital outpatient services in Original Medicare.

  Also, Medicare doesn’t cover everything.  That surprises a lot of people …often at a critical time of need when they find that the cost of care is theirs alone.  For example, generally long-term care is not covered.  So, for example, Medicare may cover rehabilitation services following a stroke, but once the person is ready to go home, they will pay for their own care.

  So how does all this fit together when you are trying to decide among Medicare Advantage, Medicare Supplement and Part D prescription drug coverage?

  Here are a couple rules of thumb as you consider different Medicare plans:

  Medicare supplement insurance covers the gap (that’s why it’s called Medigap insurance) in Medicare Part A and Part B coverage – the 20% of cost that Medicare doesn’t cover, some plans cover the Part B deductible, provide additional days of coverage beyond what Medicare provides.  A good way  to think about medigap insurance is that it pays only when Medicare pays. You generally won’t find co-pays in these plans.  But, two new plans: Plan M and Plan N do have co-pays – so calculate in those costs if you consider these Medigap plans. All Medigap plans are standardized which means all insurance companies offering the plans must offer the same benefits.  But prices can vary, so compare plans before you buy.

  Medicare Advantage (Medicare Part C): These plans wrap Medicare Part A and Part B together – sometimes includePart D and sometimes additional benefits like vision or dental.  Cost sharing in these plans takes all types of forms.  It depends on the individual plan.  So ask lots of questions and make sure you understand deductibles, co-insurance, and co-payments.

  Part D prescription drug plans vary widely.  So look closely for deductibles, co-payments, co-insurance and the coverage gap (donut hole).

  So when you shop and compare Medicare plans make sure you fully understand your cost of care:  know the deductibles, co-pays and co-insurance of any plan you are considering so you won’t be surprised when the bill comes due.

  Resources:

  Medicare and You 2010  Government resource

  What’s New About Medicare Supplement Plans from Longevity Alliance

   
• Talk Health Care with Your Financial Advisor? You Bet

  1:02 pm on July 7, 2010 Permalink | Reply
  

  Anyone closing in on retirement knows that health care can be one of the biggest unknowns in retirement. 

  What if you have a stroke and need to pay for long-term care?  With retiree insurance disappearing, more retirees face monthly premiums for Part B of Medicare, a Medicare supplement plan and Part D prescription drug insurance or a Medicare Advantage plan.  If you develop a chronic health condition, some plan co-pays and deductibles can make a pretty big dent in the retirement budget. 

  So it’s surprising that in a recent survey 68% of people said they did not want to talk about health care with the person from who they seek financial advice.  And these were people aged 60 and over, who one can assume are at least thinking about life without a pay check.  (The survey was conducted for Senior Market Advisor by the Boomer Project.) 

  While the research didn’t provide any insight into the background of those answers, our guess is that those responding are still locked in a world where health and money just didn’t connect.  But as more  health care costs are shouldered by the individual, it’s a dangerous perspective.  That’s why insurance to reduce the personal financial risk is so important.

   Here are three reasons why health care and financial planning should be linked in your retirement planning: 

  1.  Health care costs can destroy your retirement savings.  Without adequate health insurance, you’re left to pick up the bill.  Remember, even Medicare covers just 80% of the costs – you shoulder the rest unless you purchase insurance such as Medicare Supplement or Medicare Advantage. And, the cost of prescription drugs can be astronomical.

   2.  Long-term care costs can top $100,000 per year in some states – they average about $79,000 per year..  Many people don’t realize that Medicare generally does not cover long-term care needs. If you have money, you will pay the bills.  Government supported Medicaid is only for those who have limited financial resources. Long-term care insurance can help shift some of the financial risk to an insurance company.

  3.  Your health can change in a minute.  If you haven’t planned ahead on how to cover the cost and considered insurance to offset some of the risk, it’s probably too late now.  Long-term care insurance has strict rules on the health condition of those who qualify –you have to be in generally good health.  And sometimes it is just not realistic to think that family or friends will be able to care for you so you’ll face paying for the help you need. 

  Whether you have a financial advisor who helps with your planning or you take care of your own retirement planning, don’t shrug off health care as not being relevant to your financial plan.

  If you have a financial advisor, let them know about family health history especially if there are conditions such as Alzheimer’s, stroke, MS or heart problems.  And determine how much financial risk you can shoulder if you face a debilitating health issue and how much you should pass off to an insurance company.  You don’t have to buy insurance from them — that’s probably not their area of expertise.  There are experts in health care and long-term care insurance.

   If you are approaching Medicare age, find out what Medicare covers and what it doesn’t.  and make sure you get the right coverage whether it’s Medicare Advantage, Medicare Supplement or Medicare Part D.  Once you’ve got the coverage, you can better understand what risk you’ll have to cover through your own assets.

  It’s the best way to protect your assets –and your family.

   
• Excercise Helps Your Body and Brain As You Age

  1:36 pm on July 6, 2010 Permalink | Reply
  

   In case you need one more reason to exercise, here’s a really good one:  Exercise just might be able to keep dementia at bay.

   A research study of exercise habits in 9,344 women found that those who were more physically active throughout life showed less cognitive decline later in life. The researchers said those who exercised when they were young were about 30% less likely to show signs of dementia.

  Think it’s too late? Exercise made a difference at all ages of those studied, even if they started a 50 or even older.  Since the study was focused only on women, it’s not clear whether the same results would hold true for men. 

  The researchers say the study doesn’t prove that there is direct link between exercise and less dementia in senior women but it does indicate a potential relationship. 

  A lot of the brain research going on these days looks at whether or not we can improve our brain functioning by exercising it.  Whether it’s crossword puzzles or specialized computer games that aim to keep us sharp. 

  A recent Newsweek article on the aging brain provides information about recent research and also whether or not computer games are helping improve our memory.

  Maybe some more evidence that what’s good for the body is good for the mind too!

   The research study was published in the Journal of the American Geriatrics Society by Laura E. Middleton, Ph.D., postdoctoral fellow, Sunnybrook Health Sciences Center, Toronto; Greg Cole, professor, medicine and neurology, University of California at Los Angeles.

   
  • 

    Dave 8:16 am on July 29, 2010 Permalink
    

    More support of what we all know in our hearts that exercise is a GOOD thing as we age. Moderation is important as we do not want to injure ourselves. And consistency is key so something that you enjoy doing (or at least to not hate) is the way to go. Having a training partner really helps when you find yourself unmotivated and need a little push. But just do it!