{ business solutions } Get Some A, B or C, but Don’t Forget D M
edicare: The Gov- ernment chose to use the alphabet to keep it simple, but
in reality, it is extremely com- plicated considering that nearly every American will eventually use it for their health care. I know you’ve heard that 10,000 Baby Boomers are turning 65 every day. This will continue for quite a few years because this generation is those born between 1946 to 1964, and they make up a 75-million- segment of the American popula- tion. If you’ve worked at least 40 quarters (10 years) and paid in the Medicare tax (currently 1.45 percent) on your payroll, then you and your spouse are eligible to receive Medicare part A for free when you turn 65.
NEW MEDICARE CARDS ARE COMING STARTING IN APRIL 2018. Designed with a completely new random identification number, they will not include your Social Security number which will make it harder for someone to hack your identity or obtain benefits using your private information. The mailing for residents in Missouri will start after June 2018 and the entire transition period could take until April 2019. We will keep you updated on progress and details.
Ambulance; and, Mental health (inpatient/outpatient).
MEDICARE PART A is the hospital portion of health care in retirement. If you have not worked at least 40 quarters, but have worked from 30 to 39 quarters, the standard Part A cost is $232/month. If you have paid in Medi- care taxes for less than 30 quarters, you can purchase Medicare Part A at a cost of $422/ month, but remember most people get this for free. If you do not sign up for Medicare Part A within the 7-month window calculat- ed by three months before age 65, the month of your birthday and three months after your birthday, you may be faced with a 10 percent penalty for two times the length of time you were late. Example: You signed up for Medicare at 67, two years after you were eligible. You would pay a 10 percent penalty on the monthly premium for four years.
MEDICARE PART B is the medical insur- ance part of your health care in retirement. It pays for:
The typical cost for Part B in 2018 is $134/ month, however, there is an additional charge based on your income from two years prior that is called an Income Related Monthly Adjustment Amount (IRMAA). The charge varies based on five different income levels and whether you file as an individual or married filing jointly. Example: Married filing jointly with income from $267,000 to $320,000, the Part B Medicare premium would be $348.30 per person each month.
Remember, they are going to use your in- come from two years ago because that is the most recent tax return information provided to Social Security by the IRS, so your first two years of retirement will probably be more expensive for the Part B premium. If you are receiving Social Security Retirement benefits, you may elect to have the Part B premium withheld from your Social Security check each month. If you are not receiving Social Security, it will be direct billed, or an authorized automatic draft from your bank account. There also is a penalty if you do not file for Part B when eligible. The penalty is
10 percent for each full year that you did not file and will apply for as long as you have part B. Example: You are eligible for Part B at 65. However you do not file until after you are 67. You will in- cur a 20 percent penalty as long as you have Part B—the rest of your life. Based on the income-adjusted Part B premium from the example above, your premium cost could soar to $417.96 /month for each of you. Another reason to apply when eligible is because you want to make sure you are ready and covered when you no longer have other insurance. Although you may pay the penalty, a more serious consequence is that you
will have to wait for the next general enroll- ment period which is January 1 to March 31, and then coverage becomes effective July 1, meaning you may not have coverage for several months or a full year.
MEDICARE PART C is also called Medicare Advantage. Medicare Advantage Plans cover all Medicare services of Part A and B and can include some extra services such as dental care, vision care, hearing health and well- ness—they can even cover gym membership. Medicare Advantage plans are different. They are private health plans that are highly sub- sidized by the U.S. Government and take the place of Part A and B. The costs vary greatly depending on services provided, your zip code, whether it is a PPO or HMO, the net- work of providers, the insurance company or carrier. There are some Medicare Advantage Plans that actually have a $0 monthly cost but may require a higher out of pocket in the form of deductible and co-insurance. Just because a doctor is contracted with CMS to accept Medicare patients does not mean that they will accept Medicare Advantage. Some Medicare Advantage Plans may be combined
