medicare

Astonishing Data on the Current State of Retirement in the United States

October 24, 2022 /by bill hoff

You may always start saving for retirement. People in the US work hard throughout their careers to retire. Planning requires cognitive abilities and a focus on saving money.

According to a Gallup study, the average retirement age in the US has risen from 60 to 66. With a 78.7-year life expectancy, Americans will have at least 12 years to enjoy retirement.

The average annual income and net worth of the 47.8 million Americans aged 65 and older are $38,515 and $170,516, respectively. That’s a lot of money to save for retirement. Here are some more startling facts concerning the situation of retirement in the United States.

Young people believe they can retire early, which does not happen.

Most respondents aged 18 to 29 who took part in a Gallup poll believed that they would be able to retire early, around the age of 60. However, their optimism may fade as they approach 30 because of the difficulties of making a living and earning income.

Retiring may take longer than anticipated.

The average lifespan in the US is 78.7 years, but many people survive into their 80s or 90s, making it challenging to predict retirement worth. According to the Social Security Administration, a healthy 65-year-old has a good probability of living to 86 or 84. Over 65s should save for a 20-year retirement.

More and more people in the United States are preparing for a longer retirement.

Americans take extended life expectancy seriously. 81% of Americans are moving their assets in anticipation of living longer than their predecessors by minimizing spending, acquiring safe life insurance, and boosting pension payments.

Many Americans are taking money out of their retirement accounts early.

In contrast to those who are saving for longer life, many Americans are taking early withdrawals from their retirement accounts. 44% of Americans between the ages of 40 and 79 have pulled money from their retirement plan. While 46% of those aged 40 to 49 and 53% aged 70 to 79 have done so as well. Financial experts warn against early withdrawals from a retirement account, as doing so might result in hefty fines.

Americans Aren’t All Set for Retirement.

77% of American employees are considering retirement via company plans and other alternatives. People begin saving for retirement on average when they turn 27 years old. Only 33% of Americans have anything set aside for their retirement days.

Americans are falling short of their financial goals.

As many as 77% of Americans are planning for their retirement, but most don’t have quite enough personal savings to maintain their standard of living in retirement. As per a 2017 GAO analysis, the typical retirement funds for Americans aged 55 to 64 were a little over $107,000. Although it may sound like a lot of money, the GAO points out that if it were placed in inflation-protected annuities, it would only provide $310 minimum repayments.

Social Security isn’t a sure thing.

Social Security is only guaranteed to be financed until 2035, when it may be three-quarters financed, citing Business Insider. Those already receiving benefits may see a drop, while freshly retired folks may not receive any. This is partly linked to aging. The number of Americans 65 and older will climb from 56 million to 78 million by 2035. More people will withdraw money from the pool, while fewer will contribute.

Your Retirement Could Be Squeezed Out of You Before You Know It.

It’s helpful to have a retirement plan in place. But occasionally, life has several other intentions. According to a TD Ameritrade survey, health issues and career changes are the two most popular causes for retiring. 50% of persons retired early due to unemployment, parenting duties, a sudden change in their economic standing, and health concerns.

A Larger Amount of Money Is Necessary to Retire comfortably.

Experts recommend that you save between $500,000 and $1 million to maintain your current standard of living in retirement – a considerable sum of money, the accumulation of which may take many years.

Residential Care for the Elderly Is Expensive.

Long-term care is mainly needed by individuals who reach the age of 65. Medicare doesn’t pay assisted living fees. A care facility costs $4,051 per month, whereas a nursing home costs significantly more. Other medical expenses aren’t included. In their 60s, more people buy long-term insurance.

The Time Is Now.

More and more consultants are labeling themselves “complete,” and this trend is expected to continue. The issue is that many individuals we talk to do not incorporate conversations about risk assessment into their line of work. Even if they are joking, it doesn’t change that they aren’t seriously trying to come up with recommendations or answers.

According to our assessment, these professionals are missing out on a fantastic opportunity. The environment of investment planning has changed, and customers now want a more exceptional customer experience, which is why so many advisors are now similarly advertising themselves.

Currently, experts that offer a comprehensive service have most of the financial advantage. Learning about and putting into practice different risk management measures, such as annuities, could be a straightforward first step.

Contact Information:
Email: [email protected]
Phone: 2178542386

Bio:
Bill and his associates of Faith Financial Advisors have over 30 years’ experience in the financial services industry.
He has been a Federal Employee (FERS) independent advocate and an affiliate of PSRE, Public Sector Retirement Educators, a Federal Contractor and Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants.
Bill will help you understand the FERS Benefits and TSP withdrawal options in detail while also helping to guide you in your Social Security choices.
Our primary goal is to guide you into your ment with no regrets; safe, predictable, stable and for life using forward thinking ideas and concepts.

Bullet points:
> Financial Services consultant since 1984
> FERS independent advocate and an affiliate of Public Sector Retirement Educators (PSRE), a Federal Contractor and Registered Vendors to the
Federal Government
> Affiliate of TSP Withdrawal Consultants
> His goal is to guide individuals into retirement with safe, and predictable choices for stability using forward thinking ideas and concepts.

6 basics of social security information you should know

October 18, 2022 /by mickey elfenbein

Social Security payments are one of the three parts of the Federal Employees Retirement System (FERS), together with the Thrift Savings Plan (TSP) and the FERS pension. Social Security monthly benefits are essential to a federal employee’s retirement.

Here are six things to think about when it comes to your retirement income.

1. What Determines Your Monthly Benefit Amount?

That depends on various variables, the most important of which is your lifetime income from jobs for which you have paid Social Security taxes. Your “basic” benefit is calculated by Social Security using the average of your 35 highest earning years adjusted for inflation. This average is then entered into an advanced calculation. The age you are when you apply for benefits will also impact the amount. Even though you won’t know for sure until you apply, you can estimate using the AARP Social Security Calculator.

As of June 2022, the typical Social Security benefit (except survivor and disability benefits) was $1,592 gross per month. Remember that a portion of your Social Security may be subject to taxation if your annual income exceeds a specific threshold ($32,000 for a married couple and $25,000 for an individual).

The following factors determine your Social Security amount:

Working experience
Age
Start of benefits
Marital situation

Although it is not factored into the calculation, it is sometimes thought that the IRS life expectancy factor affects one’s Social Security payment.

2. What is Full Retirement Age?

It’s crucial to think carefully before withdrawing your benefits. You become eligible for benefits for the first time at age 62 and a half. Still, if you continue to work, your benefits will be subject to the dreaded earnings test, which results in cutbacks if your earned income exceeds a specific threshold – $19, 560 in 2022. Knowing your full retirement age (FRA), at which point you can still receive your entire pension while working, is a good idea. Depending on when you were born, your FRA will be between the ages of 65 and 67. For instance, your FRA is 67 if you were born in 1960 or after.

3. Medicare and Living Wage Adjustments (COLAs)

Direct Medicare B premium deductions are made from your Social Security check. When hearing about impending COLAs, which are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) and come once a year, it is crucial to keep this in mind. Your monthly benefit remains the same if neither inflation nor deflation occurs. If so, your Social Security pension will rise by the same amount as the CPI-W. The COLA for 2022, for instance, was 5.9%. According to estimates, the COLA for the following year will be the highest in about 40 years.

Nevertheless, even though COLAs raise Social Security income, healthcare costs – and hence Medicare premiums – often increase along with inflation, generally offsetting any COLA increase. However, a decrease of 8.6% beats a reduction of nearly 14%. The 2022 Medicare B premium rise was 14.5%, eliminating the 5.9% adjustment.

4. Survivor Benefits

Any surviving children or spouse can be qualified for Social Security survivor payments in the event of your passing. Many government employees may be unaware of this. Even if they are, they may not be aware that the survivor benefits are not the entire amount the original beneficiary would have received.

5. Benefits for ex-spouse

If all five of the following facts about an ex-spouse or ex-husband are accurate, they may be eligible to receive a share of your Social Security benefits:

1. They are 62 years old or older.

2. Neither of them has remarried.

3. At least ten years were spent in the marriage.

4. The benefit they are entitled to is lower than the benefit awarded to them if you were their ex-partner.

5. You must also qualify for Social Security through retirement or disability benefits.

6. What are the maximum benefits one can get per month?

The highest monthly benefit is $3,345 for a worker filing for Social Security at full retirement age in 2022. That’s roughly double the average retirement pension ($1,666 in April 2022). Your earnings must have surpassed Social Security’s maximum taxable income, or the annual adjusted cap on the percentage of your income subject to Social Security taxes, for at least 35 years of your working life to be eligible for the top benefit.

Contact Information:
Email: [email protected]
Phone: 6122163911

Bio:
Mickey Elfenbein specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. Mr. Elfenbein’s mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mr. Elfenbein’s job to be an expert on the various programs and to stay on top of changes.

Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.

He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.

Retirement’s top 5 monetary threats

October 14, 2022 /by aaron steele

Many individuals excitedly await retirement, yet it also causes worry. After retirement, you may travel more, spend more time with family, and try new things. However, retirees face severe risks.

Older Americans may be more aware of the dangers. Compared to Generation Z, just 14% of the following generation is secure about their financial future in 2022, according to a Bankrate study in December 2021. Several factors contribute to the financial insecurity of retirement, including rising healthcare expenses, price fluctuations, and hyperinflation. As individuals encounter retirement, they must be aware of these and other dangers.

Top Threats

The rising expense of health care

If you don’t prepare, you might find yourself in a financial bind as you age. According to Fidelity’s projections for 2022, the average 65-year-old couple will require $315,000 to cover their healthcare costs alone. In each scenario, the cost will be different, but this indicates what it will cost in retirement.

Because Medicare might not even pay all your medical bills, retirees’ healthcare is more expensive. For example, long-term healthcare, dentistry, and assistive devices are not included. Medicare Part A premiums could rise to over $500 per month by 2022.

Volatility in the financial markets

In the near term, the stock market may be highly volatile, making it challenging to develop long-term wealth. Research from financial management firm First Trust shows that the typical bear market in the United States lasts 1.4 years, with a loss of 41% on average. These bearish circumstances might seriously threaten your financial stability if they occur during your retirement years.

Therefore, having a well-diversified portfolio is a good idea as you approach retirement. At the conclusion of your employment, increasing the proportion of bonds in your investment might reduce your exposure to market turmoil. Bonds are less risky than stocks, but no investment is risk-free.

Inflation

If you’re retiring in 2022 and no longer accepting wage increases from a job, inflation is a concern for you. Luckily, Social Security adjusts benefits for inflation each year. Conversely, inflation might risk devastating your lifestyle even if you have plenty of available cash and aren’t dependent on work.

Investing in equities after retirement is a common way for retirees to combat inflation. Maintaining a small stock investment can help stave off the consequences of inflation, despite the fact that retirees typically have a lower stock allocation than those in their 20s. Some other investments, such as TIPS or Series I savings bonds, adjust for inflation regularly. This might be helpful.

Having no money left to spend

As a result, many retirees are concerned about running out of money. In addition to the fact that individuals are living longer than in previous decades, many retirees may not have the resources to cover their last expenses.

When it comes to saving for retirement, you can do a few things if you’re behind and worry about running out of money someday. Your retirement funds could be boosted by optimizing payments to an IRA and boosting your payments to a 401(k) or another plan.

Postponing Social Security benefits and purchasing insurance are two more options. If you postpone taking Social Security, you will receive more money each month. On the other hand, annuities allow you to purchase insurance that will pay you a fixed sum for the rest of your life.

The loss of a loved one

Your spouse also poses retirement risks. Pension benefits may be cut after a spouse’s death. Sharing expenditures with your spouse may make it harder to make monthly payments. Also, remember that funerals are costly.

Several insurances may help lessen the financial effect of your spouse’s death. Survivor payments and life insurance can reimburse you.

Conclusion

Retiring isn’t easy. Leaving a job requires several life and financial adjustments. After retirement, you may encounter medical expenses, macroeconomic variables, and inflation. Because there are so many factors, a financial counselor may be helpful. An advisor can help you assess how much money you’ll need and how to plan your draw-down.

If you’re worried about consultation costs, a fee-only fiduciary financial adviser can assist. This service may cost you upfront, but it will likely save you money over time.

Contact Information:
Email: [email protected]
Phone: 3604642979

Bio:
After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.

Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.

Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.

Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.

Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.

With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.

Aaron can help you and your family to create, preserve and protect your legacy.

That’s making a difference.

Disclosure:
Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.

Confidential Notice and Disclosure: Electronic mail sent over the internet is not secure and could be intercepted by a third party. For your protection, avoid sending confidential identifying information, such as account and social security numbers. Further, do not send time-sensitive, action-oriented messages, such as transaction orders, fund transfer instructions, or check stop payments, as it is our policy not to accept such items electronically. All e-mail sent to or from this address will be received or otherwise recorded by the sender’s corporate e-mail system and is subject to archival, monitoring or review by, and/or disclosure to, someone other than the recipient as permitted and required by the Securities and Exchange Commission. Please contact your advisor if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. Additionally, if you change your address or fail to receive account statements from your account custodian, please contact our office at [email protected] or 800-779-4183.

Medicare in 2022 – What We Should Expect

September 3, 2022 /by bill hoff

Medicare is a health insurance program of the United States government that subsidizes healthcare services. The plan provides coverage for individuals 65 or older, those younger than 65 who meet certain eligibility criteria, and those with certain diseases.

Medicare comprises several plans, each providing coverage for a particular aspect of medical care; however, some require the insured to pay a premium. Medicare gives consumers more options in terms of costs and coverage, but it also makes it harder for people to sign up for the program.

Medicare Changes in 2022

According to a report by the Kaiser Family Foundation, the typical Medicare beneficiary will have access to 39 different Medicare Advantage plan options in 2022, more than in recent years. The expected changes would consist of the following:

Improved Alzheimer’s Drug Coverage

According to the Alzheimer’s Association in the U.S., the disease affects approximately 6 million Americans. It has grown to be a serious issue for the medical industry because it is among the most widespread illnesses that affect people of all ages.

An effort was made to control and help those afflicted by it by the government. For instance, CMS announced that they plan to submit a proposal for a monoclonal antibody drug that could help fight Alzheimer’s disease.

The government is still testing the drug and needs more real-world data before it can be sold to the public. The Food and Drug Administration Authority has approved the use of AduhelmTM as the only treatment for Alzheimer’s disease.

Improved TeleHealth Services

Medicare has over 44 million beneficiaries, making it one of the largest health-related programs in the U.S. The program is designed to cover a large population. It offers some of the most comprehensive treatment plans currently available to patients. As a result, many Medicare beneficiaries have limited mobility or are in poor health, making it difficult for them to access hospital facilities in their area. Sometimes the journey is so strenuous and exhausting that some people prefer to stay home and postpone their doctor’s appointments. It was a significant issue for people during the recent covid outbreak.

Fortunately, Medicare has addressed this issue by providing more telehealth care services to its patients. Telehealth services enable medical professionals to treat COVID-19-related or other medical conditions from the comfort of their own homes, offices, or other locations.

Reduction of Insulin Cost

The price of insulin has historically been a significant burden on the finances of older adults. Many older Americans rely on insulin, which puts their lives at risk if they don’t have it. According to statistics, one in every five Medicare beneficiaries has diabetes. Unfortunately, many people continue to lack adequate access to insulin.

The Part D Senior Savings Model was introduced by the Centers for Medicare and Medicaid Services in 2021, marking the beginning of the process by which the Medicare program would begin to address this concern for senior citizens. This model limits insulin costs to $35 per month.

Since its expansion in 2022, the Medicare Part D Senior Savings Model now assists more people enrolled in the Medicare program. The program has expanded to include all 50 states, the District of Columbia, and Puerto Rico so that everyone can get the same insulin doses at the same price.

Medicare Advantage Changes

Another popular option for Medicare beneficiaries in the U.S. is the Medicare Advantage plan (Part C). People must be aware that there may be numerous changes soon regarding this plan.

The Medicare Advantage Plan (Part C) price has dropped from $21.22 to $19, making it a viable option in 2022. Coupled with the monthly premium for Part B, beneficiaries are responsible for paying an additional premium because of the benefits it provides to users and because the program benefits patients in various ways. The following are some of the most popular advantages of signing up for the Medicare Advantage Plan:

· Amplification devices for the deaf

· Availability of gyms and exercise facilities

· Assistance during an emergency

These plans are easily accessible to people who have a plan subscription. In 2022, experts estimate that the number of people enrolled in Medicare Advantage plans will rise to 29.5 million. People with chronic conditions may also qualify for a 19% to 25% reduction in the monthly premium for their Medicare Advantage plans.

How Do I Sign Up for Medicare?

Once you are eligible for Social Security benefits at age 65, you will be automatically enrolled in Medicare Part A, which covers hospital costs, and Medicare Part B, which covers doctor visits. You are automatically enrolled in these programs without taking any additional steps. On the other hand, you will be required to sign up for additional Medicare-related services. You must enroll in Medicare Part D to receive coverage for prescription drugs. You can apply for this through the Social Security Administration’s website, even if you do not currently receive benefits from Social Security. This should be done within seven months, around your 65th birthday. This window includes the three months preceding your 65th birthday, your birthday month, and the three months following your birthday month.

To qualify for Medicare Supplement Insurance, also known as Medigap, you must enroll in Medicare yourself. This enrollment period begins the month after you reach the age of 65 and are enrolled in Medicare Part B. If you sign up during that period, the private insurers offering Medigap plans are required to accept you.

It’s possible to switch Medicare plans at any time during the year if you miss the initial open enrollment period or decide to enroll later.

Contact Information:
Email: [email protected]
Phone: 2178542386

Getting Started with Medicare

August 27, 2022 /by marvin dutton

Medicare is a health insurance program for those over the age of 65 and those under age 65 who have specific disabilities. You can sign up for Medicare at least three months before your 65th birthday. If you’re new to Medicare, you might be unsure where to begin. What you need to know is summarized below.

Medicare is Divided into Four Sections

These four components operate together to offer comprehensive coverage, although each part is responsible for different services.

Medicare Part A: covers inpatient hospitalization, hospice care, skilled nursing facility care, and home health care. For the most part, this Medicare category is free.
Part B Medicare: covers outpatient services like doctor visits, X-rays, and lab tests. Part B coverage is paid for monthly.
Medicare Part C (Medicare Advantage): this allows you to combine your Medicare coverage into a single plan. Hospital and doctor care and prescription drug coverage may be included in these plans. You normally pay a monthly premium for Part C coverage, plus a deductible or copayment if applicable.
Part D: Prescription drug coverage is provided under Part D of Medicare. This coverage is available as a stand-alone plan or as part of a Part C plan that includes prescription coverage. For Part D coverage, you must pay a monthly premium and a deductible or copayment.

Parts A and B Are Available Without Charge

For the most part, Part A is free. Unless you or your spouse have never worked and paid Medicare taxes, you usually don’t have to pay a monthly payment for Part B. If you’re unsure if you’re eligible for premium-free Part A, contact your Human Resources department if you’re still employed or the Social Security Administration if you’re retired.

If you’re still working at age 65, Medicare is secondary to employment coverage. (If you get health insurance via your employer, you won’t have to do anything until you retire or your job-based coverage stops.) Parts A and B should be signed up for three months before your 65th birthday or eight weeks after you retire (whichever comes first).

Medicare Supplement Insurance Provides Additional Protection

You can get supplemental insurance, generally known as Medigap, in addition to the four categories of Medicare. Some costs not covered by Medicare, like deductibles and copayments, are covered by Medigap plans.

Medicare Advantage Plans Can Also Provide Coverage

You can acquire coverage through a Medicare Advantage plan if you don’t want to buy a Medigap policy. These plans are offered by private insurance companies that have a Medicare contract. All Original Medicare services must be covered by Medicare Advantage plans (Part A and Part B). They can, however, provide additional benefits such as prescription medication coverage, dental coverage, and vision coverage.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementiong a sound plan for your retirement. We are commited to helping you achieve your goals. Visit us at M. Dutton and Assoiciates.COM. Tel. 212-951-7376: email: [email protected].

Learn How To Save on Medicare Part B premiums

August 20, 2022 /by rick viader

Is there a program allowing seniors with Medicare Part B to have their payments refunded by enrolling in a free Medicare Advantage Plan?

Yes, is the answer.

Medicare Advantage programs reduce all or a portion of the Part B premium.

These programs have a variety of names, including Part B Buyback, Reimbursement, Giveback, and Premium Reduction.

The plans require the insured to be enrolled in Medicare Parts A and B. In some instances, Medicare Advantage (MA) Plans include Medicare Part A and B, and usually Part D, Medicare drug coverage. The rules for this plan change often, like whether you have to have a referral for specialty doctors or need to go to a specific facility for non-emergency care. Medicare Advantage Plan can also charge different out-of-pocket expenses, yet there is a yearly limit on those out-of-pocket costs for all Part A and B services.

What you pay in a MA Plan depends on many factors.

For instance, you’ll need to use a provider that participates in the plan’s network, like Aetna, Humana, and Wellcare, the participating insurers in New Jersey.

The premium reduction amount is determined by where the insured resides and is applied to the amount paid through Social Security. The insurance carrier doesn’t send a check immediately to the insured.

You should contact a provider directly to see if this plan is available in your area for further information.

Contact Information:
Email: [email protected]
Phone: 9568933225

How to Appeal a Federal Insurance Claim Denial

August 15, 2022 /by marvin dutton

The Federal Employees Health Benefits Program (FEHB) can aid you and your family in meeting your healthcare needs. Federal employees, retirees, and their dependents have access to the most comprehensive health care options in the country.

Federal insurance claims can sometimes be denied. Denial occurs when your federal employment insurance program informs you that your medication or therapy will not be covered. It is quite irritating and frightening if you are obliged to pay for the entire cost of treatment. However, you can fight against the denial of a federal insurance claim.

Initially, examine if the service is included, restricted, or exempted in your plan’s brochure. Further, go through the section of your brochure that deals with the disputed claims. Concisely, this section will instruct you to contact the plan and clarify the reasons why you believe the services should be covered (consider the appropriate brochure coverage provisions). You will also be instructed to request that the plan review your claim.

If the plan denies the claim once more, read the plan’s conclusion letter carefully and double-check your plan’s brochure. If you continue to disagree with the plan’s judgment, the disputed claims portion of your brochure will explain how to contact the Office of Personnel Management and request a claim reassessment.

The Office of Personnel Management (OPM) is adopting provisional measures to amend the Federal Employees Health Benefits Acquisition Regulation to include a new contract provision (FEHBAR). The clause clarifies for both FEHB carriers and covered people the conditions in which OPM may decide about a covered person who requests OPM to reconsider a health benefits plan’s denial of a claim if the plan has either confirmed its denial once the covered individual requested reconsideration or has failed to answer to the covered individual’s request for reconsideration as provided by OPM’s regulations.

Claimants may seek court review of benefit denials under the FEHB program in certain instances, according to the provision. The objective of these interim regulations is to make it clear that covered persons who want to file a legal claim over rejection of an FEHB benefit must do so through OPM. The interim regulations also define the administrative review procedure that must take place before legal action may be taken in court.

In most cases, OPM will respond to your inquiry within five days. OPM will offer you a final response within 60 days once the evaluation is completed. If it requires more time or you need to do moreÃ¢â‚¬â€œfor example, email more informationÃ¢â‚¬â€œthey will contact you within 14 business days of receiving your request and tell you what you need to do next, if anything. The Office of Personnel Management will not decide over the phone until the review is finished and a written copy of the final decision is delivered.

If you are unhappy with the outcome of the OPM review, you may be entitled to file a lawsuit in federal or state court, depending on your state’s rules. If required, seek legal advice.

If your claim is refused, you have 60 days to request reconsideration, and the carrier will answer within another 60 days. Suppose the reconsideration judgment denies the benefit again. In that case, you have 60 days to submit an appeal with a committee comprised of persons appointed by the John Hancock life insurance business, as well as others, if mutually agreed upon with the OPM. Within 60 days, the appeals body will make a ruling.

If the committee sustains the denial, you have the option of requesting an appeal to an independent third party chosen by OPM and the carrier. The request would have to be submitted within 60 days, and a decision would have to be made within another 60 days.

You may seek judicial review of a final rejection of eligibility for benefits or a claim in federal district court after exhausting this appeals procedure. The amount of compensation would, however, be restricted to the benefits that would have been receivable. Actions against the Office of Personnel Management or the third-party adjudicator are also prohibited, as are suits based on state or municipal law or regulations.

Contact Information:
Email: [email protected]
Phone: 2129517376

Medicare is Not A Free Service

August 9, 2022 /by marvin dutton

In a video interview, the founder and President of Sensible Money, Dana Anspach, outlined the parts of Medicare and the costs connected with Part B and Part D.

Medicare Part A, sometimes known as hospital insurance, is free if you have worked in the United States for several years. “If you’re qualified for Social Security benefits, you’re usually also eligible for free Medicare Part A,” Anspach explained.

Other services and supplies are covered by Medicare Part B, which has a monthly cost that fluctuates depending on your income.

There’s also Part D, which covers medicines and is free if your income is low enough but has a cost after surpassing certain thresholds.

Amount of Income-Related Monthly Adjustment

In 2022, the regular Part B premium will be $170.10. According to Medicare.gov, most consumers pay the basic Part B payment.

Suppose your modified adjusted gross income (MAGI), as reported on your IRS tax return two years ago, exceeds a specific threshold. In that case, you’ll have to pay the usual premium plus an income-related monthly adjustment (IRMAA). IRMAA is a fee added to your insurance premium.

“Like so many other aspects of retirement, it’s more complicated than you might assume,” Anspach explained. “First, the Social Security office uses data from two years ago to establish your premium amount, so if you enroll in Medicare for the first time in 2022, they will use data from your 2020 tax return.”

Let’s say you’re 65 in 2022, and your MAGI from 2020 is less than $182,000 if married filing jointly or $91,000 if single; in this scenario, your Part B premiums will be $170 per month, and Part D will be free, according to Anspach. (To determine your MAGI, subtract any tax-exempt interest income from your adjusted gross income (AGI).)

Your premiums will now be greater if your MAGI surpasses additional threshold values. “This is known as means-testing, and the IRMAA is the technical name. According to Anspach, your premium amounts are communicated to you via a letter from the Social Security Administration called an Initial Determination Letter.

Singles with a MAGI of more than $142,000 or married with a MAGI of more than $284,000, for example, will pay $442 per month for Part B and $52 per month for Part D.

A MAGI of more than $500,000 for singles and $750,000 for marrieds attracts the highest premiums of $578 for Part B and $78 for Part D.

According to Anspach, you will receive a quarterly invoice for these premiums if you are not yet enrolled in Social Security. If you participate in the Social Security program, your premiums are withheld from your monthly payment.

Premiums for Part B

Requesting a Re-Determination of the Initial Decision

Anspach also described how recipients might ask the Social Security Administration for a revised first determination, as MAGI is affected by a list of life-changing events; however, your situation must be on the list to make this request.

Contact Information:
Email: [email protected]
Phone: 2129517376

How Does Working Longer Affect Your Social Security Benefits?

August 9, 2022 /by mark heinrich

If you’re like most retirees, you’ll be living off your Social Security payments in your golden years. More than half of older Americans rely on Social Security for at least 50% of their income, and 25% rely on it for 90% of their income, according to the Center on Budget and Policy Priorities (CBPP).

You may also have to work longer hours. Since data collection began in the 1960s, the percentage of American employees between the ages of 62 and 65 has been at its highest. People over 65 now are twice as likely as they were in 1985 to be employed, with roughly 20% continuing to do so (though there was a slight downturn during the pandemic).

As a result of the first set of facts, I believe that maximizing your Social Security payments is critical for your retirement. Many of you may be curious about how working longer affects your benefits and how to make the most of those earning years, given the rising trend of Americans staying in their current jobs for extended durations.

Working Past ‘Retirement’ and Social Security

Delaying Social Security payments for extended periods is common among persons working more hours. Social Security payments might be increased by postponing the date they are paid to you. To put it another way, the larger your benefit, the longer you wait to get your benefits (until age 70, at which point they stop growing).

Increasing your benefits by postponing credits and increasing the earnings figures used in benefit calculations is an additional advantage that may go unnoticed if you work longer. Your monthly Social Security payout is calculated based on your 35 highest-earning years (until age 70). As long as you continue to work and contribute to Social Security, your earnings record will continue to grow. You’ll get more rewards if you earn more money later in life than you did earlier.

Some Pros to Working Longer

You can boost your Social Security payments if you continue working past the more customary retirement age of 65.

There would also be an increase in any future spousal benefits.
You may be able to keep up your sharpness. Several studies have shown that those who continue to work have a greater mental acuity level. This research demonstrates that the social networks and mental demands of employment are most likely to blame for this phenomenon.
If your spouse is covered by your plan and is not eligible for Medicare, you may be able to save money by utilizing your employer’s healthcare instead of Medicare. A Medicare enrollment can be tricky, but Medicare.gov states: “Generally if you have work-based health insurance via the company you are now employed by (or the company your spouse is currently employed by), you do not have to sign up for Medicare while you are still working. There is no need to join up until you quit working (or until you lose your health insurance if that is the case).” You may want to hold out on Part B but join up for Part A because it’s free. Exceptions do exist. A health savings account (HSA) is unavailable if you have any Medicare coverage, including only Part A.

Contact Information:
Email: [email protected]
Phone: 9187441333

Mark specializes in providing financial knowledge, ideas, and solutions for federal employees, individuals, families and businesses. We serve as your advocate, and assist you in the design and implementation of financial strategies while providing the ideas to maximize your security and wealth. Our goal is to give you maximum control of your financial future. We provide the expertise to help you with personal issues such as: practical tax Ideas, risk management, investment solutions, and estate preservation.

Additionally, we’ve counseled hundreds of employees on their transitions from careers in federal government, and private industry to their next life stage, whether that is retirement or a second career. We specialize in devising strategies that roll your TSP, 401(k), pension plan, to a suitable IRA to meet your objectives.

Disclosure:
Securities offered through GRF Capital Investors, Inc., 6506 South Lewis Avenue, Suite 160 Tulsa, OK 74136 Phone: 918-744-1333 Fax: 918-744-1564

Securities cleared through RBC Capital Markets, LLC. 60 South 6th St., Minneapolis, MN 55402

Member FINRA www.finra.org / SIPC www.sipc.org

Broker Check http://brokercheck.finra.org/

Is It Possible That The Social Security COLA Will Reach 9% in 2023?

July 29, 2022 /by mickey elfenbein

The boomer generation’s journey into retirement has not been easy, particularly regarding money and purchasing power. According to Mary Johnson, a Social Security Policy Analyst working with the Senior Citizens League, the purchasing power of the benefits received by people who retired before the year 2000 has decreased by 40% over the past fifteen years.

According to the most current report from the organization’s 2022 Social Security Loss of Buying Power Study, this represents the most significant decrease in purchasing power since the study’s inception in 2010.

The analysis indicates that the loss of 10 percentage points was solely the result of high inflation during this year. Since March 2021, home heating oil and gasoline prices have increased the highest among the ten usual expenditures for seniors that Johnson measures. Specifically, the cost of home heating oil has risen by 79%, while the price of gasoline has increased by 51%.

However, the price of food, as well as the premiums for Medicare Part B, have both increased. The most current estimate Johnson has provided for the Social Security cost-of-living adjustment (COLA), which is calculated using data on consumer prices, has the COLA for 2023 somewhere in the vicinity of 8.6%.

Efforts to Promote Change

There has been a recent uptick in the number of individuals arguing that the Consumer Price Index for the Elderly, often known as the CPI-E, should be utilized as the standard by which yearly cost of living adjustments (COLA) is calculated.

This includes Senators Bernie Sanders, I-Vermont, and Elizabeth Warren, D-Massachusetts, who, along with a group of Democratic senators, submitted a new measure on Thursday to repair Social Security. The Social Security Expansion Act proposes to modify the method used to calculate COLAs to the Consumer Price Index for All Urban Consumers.

The Social Security 2100 Act, sponsored by Representative John Larson, Democrat of Connecticut, likewise suggests changing the CPI-E. During his candidacy for the presidency, Vice President Joe Biden called for this move, in addition to other Social Security changes.

In addition to Social Security and senior advocacy organizations such as The Senior Citizens League, calls have been made for the CPI-E to be used instead of the CPI. The CPI-E was developed in 1987 by the United States Bureau of Labor Statistics (BLS) at the direction of Congress.

The Most Significant Concern of Retirees is Inflation

Even with that, it’s possible that it won’t be enough to keep up with the escalating prices. Treasury Secretary Janet Yellen recently issued a warning testimony before the Senate Finance Committee that the United States is currently experiencing unacceptably high inflation levels. She also stated that the White House would likely revise its forecast upward for U.S. inflation, which showed prices rising this year at nearly twice the rate seen before the pandemic.

The Lack of Savings is Making Things Worse

According to Johnson, the agony of this situation is exacerbated by the fact that many elderly and disabled people who receive Social Security benefits do not have significant savings or other resources to turn to when prices increase. According to surveys carried out by the Senior Citizens League over the previous two years, almost 45% of all seniors report having very little or no savings at all, which leaves them highly reliant on Social Security.

Contact Information:
Email: [email protected]
Phone: 6122163911

Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.

Being on Medicare Means No Money in a Health Savings Account

July 27, 2022 /by marvin dutton

Congress is discussing if a Health Savings Account (HSA) would be authorized for Medicare recipients.

However, it would alter a few of the advantages of HSAs for those over 65.

The Health Savings for Seniors Act (H.R. 7435) was recently filed in the House of Representatives and is a bipartisan effort to allow Medicare beneficiaries to contribute to HSAs once again. As more people use HSAs with their workplace health plans, the number of people eligible for Medicare at age 65 is expected to rise.

Elizabeth Gavino, founder of Lewin & Gavino and an independent broker and general agent for Medicare insurance, noted that many customers who have opened HSAs assume they may continue contributing to the HSA after enrolling in Medicare.

What are the compromises made by the legislation? It would be impossible to pay Medicare premiums using HSA withdrawals, which are presently permitted. It would also abolish penalty-free withdrawals for non-medical costs for those 65 and older.

According to an estimate by financial consultancy Devenir, 32 million of these accounts will be by the end of 2021, an increase of 8% from 2020, with a total value of $98 billion. By 2024, the company expects that number to rise to 38 million accounts and $150 billion in assets.

Annual Contributions to HSAs

Individual HSA contributions are capped at $3,650, and family contributions are capped at $7,300 in 2022. (Next year’s limitations will be increased.) People over 55 can contribute an additional $1,000 yearly to their retirement accounts.

Withdrawals from HSAs are tax-free as long as they are used to pay for eligible medical expenditures, and contributions can be deducted from taxable income. According to a 2021 report from the Kaiser Family Foundation, over 28% of workers have such a plan, up from 17% in 2011.

A Health Savings Account (HSA) is only available to those with a high-deductible medical plan, and Medicare is not one of them. Health savings accounts (HSAs) can be used to pay medical bills, but beneficiaries cannot open a new HSA or make contributions to an existing one.

Medicare Part A (hospital coverage) and Part B (prescription drug coverage) can be signed up for at 65. However, many people continue to use their employer’s health plan in addition to Medicare (outpatient care). To continue making pretax contributions to an HSA, they must delay signing up for Medicare if the employer plan is high-deductible.

High-Deductible Health Plan for 2022

High-deductible health plans in 2022 must-have deductibles of at least $1,400 for an individual or at least $2,800 for family coverage and annual out-of-pocket payments (not including premiums) of no more than $7,050 (for an individual) and $14,100 (for a family), respectively (family plan). Out-of-pocket expenses are not included.

Medical Savings Accounts (MSAs), comparable to Health Savings Accounts (HSAs), are available under the Medicare program, although just 5,600 beneficiaries were enrolled in health plans that utilized them in 2019.

Some Medicare beneficiaries may choose a high-deductible Medicare Advantage Plan that includes one of these MSAs. Individuals cannot make contributions to these accounts. However, you can take tax-free withdrawals from the plan to pay for medical expenditures, which may fluctuate yearly depending on the insurer.

Contact Information:
Email: [email protected]
Phone: 2129517376

Simple Ways to Manage Health Care Costs in Retirement if You Plan Now

July 26, 2022 /by todd carmack

Most people estimate their retirement spending based on food, gas, utilities, and housing bills. They often overlook healthcare costs.

Not considering retirement healthcare costs might be an expensive oversight since medical expenses are a significant retirement expense. They’ve outpaced inflation for years. One severe illness can destroy your savings.

Talk about price shock! Fidelity Investments estimates that a 65-year-old couple will need $300,000 (after taxes) to cover healthcare costs in retirement. Some 80% of RBC Wealth Management study respondents are “worried about funding healthcare.” According to an April IBD/TIPP poll, about half of Americans worry about retirement healthcare expenses.

Know How Healthcare Expenses Change

Still, you shouldn’t worry much about these scary prospects. For example, you don’t have to pay 20 or 30 years of premiums, deductibles, and copays in one lump sum.

Aging increases healthcare costs. RBC Wealth Management estimates that a healthy 65-74-year-old couple will spend $12,000 annually on healthcare. The cost jumps to $21,000 for couples 75-84 and $38,000 for couples 85 and older.

Your early retirement expenses will be more consistent and manageable. That allows the money you save for medical expenses in 401(k)s, IRAs, health savings accounts (HSAs), and other assets to grow before the large bills arrive.

How can you avoid healthcare costs affecting your lifestyle in retirement? Here are some tips:

Budget For Healthcare Costs

You must consider medical expenses in your financial plan. Estimate how much to save and how to pay for it.

Consider your health and family history when estimating expenses. Expect to spend more if you smoke or have a chronic condition like diabetes. Consider your location too. Traditional Medicare costs the same worldwide, but Part D and “Medigap” supplemental plans might vary.

Retirement plans are also vital. You must bridge the insurance gap if you retire before Medicare eligibility at 65. COBRA offers 18 months of coverage after you quit a job. Consider also a state health insurance exchange policy or your spouse’s plan.

Healthcare Expenses: Cover Insurance Gaps

Filling coverage gaps is your greatest protection because it reduces price uncertainty. Knowing your costs makes budgeting easier.

Consider Medicare

Many believe Medicare covers all medical expenditures. Not really. It doesn’t cover eye tests, dental, hearing, or nursing home care. Traditional Medicare requires a monthly premium and copayments for eligible services. There’s no annual limit on what you might pay for hospital and out-of-pocket medical expenses.

Medicare can be expensive. Medicare Part A (hospital insurance) has a $1,556 deductible for each benefit period and no premiums. Part B (doctor visits, lab tests, etc.) premiums start at $170.10 per month and can reach $578.30 based on income. After a $233 deductible, you’ll pay 20% of Medicare-covered services.

Part D (prescription medications) and Medigap (private coverage that helps defray costs for Medicare Part A and B services by paying for out-of-pocket expenses that could cost thousands of dollars a year) require an extra premium and deductible.

Check Your Healthcare Cost Options

Check if a privately managed Medicare Advantage plan (Part C), which bundles Parts A, B, and D, is cheaper. Although you’ll still have to pay the government for your Part B premium and possibly a private plan premium, your copays will likely be lower than the 20% copay for doctor visits under standard Medicare. Medicare Advantage caps out-of-pocket costs annually.

You may face a penalty if you don’t enroll in Medicare when you’re first eligible. So, remember to register on time.

Consider LTC

These insurance expenses don’t include long-term care. That’s the need for home, assisted living, or nursing home care. According to Genworth’s “Cost of Care Survey,” an in-home health aide costs $5,148 a month, assisted living $4,500, and a nursing home private room costs $9,034.

How may long-term care expenditures be reduced? If you can afford it, choose a stand-alone long-term care policy or a hybrid life insurance policy with a cash value. Another option is buying a guaranteed income annuity.

Paying out of pocket can be expensive and make it difficult to pass on assets to heirs.

Carefully Invest For Medical Costs

Roth IRAs, 401(k)s, and HSAs (health savings accounts) are good places to start saving early. The objective is to have adequate assets when needed. Create a healthcare savings bucket precisely as you do for emergencies, short-term needs, and retirement.

You should establish a fixed income stream for health bills that aren’t affected by market volatility or taxed every time you pay.

Use IRAs

Roth IRA and 401(k) withdrawals are tax-free. Another tax-friendly option is using a high-deductible HSA as an investing account since they are triple-tax-free. Money enters, grows, and leaves tax-free. Invest the annual HSA maximum contribution ($7,300 for families in 2022) in growth investments for future usage. In the meantime, pay out-of-pocket costs with other accounts.

You receive tax breaks at every level. It’s great to finance copays and other fees without using your HSA.

If you don’t have a Roth IRA, now’s a good time for conversion. Due to the market drop, the taxes you’ll pay to convert are likely lower than in early January.

A diversified portfolio allows you to use easy-to-access cash when needed and grow money in stocks for future healthcare costs.

Contact Information:
Email: [email protected]
Phone: 6232511574

Bio:
I grew up in Dubuque, Iowa, where I learned the concepts of hard work and the value of a dollar. I spent years in Boy Scouts and achieved the honor of Eagle Scout. I graduated from Iowa State University and moved to Chicago and spent a few years managing restaurants. I then started working in financial services and insurance helping families prepare for the high cost of college for their children. After spending years in the insurance industry, I moved to Arizona and started working with Federal Employees offing education and options on their benefits. I became a Financial Advisor / Fiduciary to further help people properly plan for the future. I enjoy cooking and traveling in my free time.

Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.

Medicare Doesn’t Cover These 7 Things.

July 20, 2022 /by aaron steele

After you turn 65, Medicare Parts A and B, often known as Original Medicare or Traditional Medicare, pay a significant amount of your medical expenses. Inpatient hospital stays, surgery, hospice care, skilled nursing facility stays, and some home healthcare are covered by Part A (hospital insurance).

Part B (medical insurance) assists in paying for doctor’s appointments, outpatient care, some preventative services, and medical equipment and supplies.

It’s critical to understand that Medicare Parts A and B create substantial gaps in your healthcare coverage. This is why Medicare Advantage was created to fill in some of the gaps.

Here’s a closer look at what standard Medicare doesn’t cover.

1. Medicare does not cover prescription drugs

Medicare does not cover outpatient prescription medications. Still, you can purchase a separate Part D prescription drug insurance or a Medicare Advantage plan that covers medical and drug expenditures.

2. Medicare does not cover long-term care.

Long-term care is one of the most significant possible expenses in retirement. According to the Genworth Cost of Care Study, a private room in a nursing home will cost around $105,800 in 2020; an assisted-living facility room costs $51,600, and 44 hours per week of home health aide care costs $54,900.

Some skilled nursing services are covered by Medicare but not custodial care, such as assistance with dressing, bathing, and other daily living activities.

3. Medicare does not cover deductibles and co-pays.

Part A of Medicare covers hospitalizations, whereas Part B covers doctor visits and outpatient care. However, deductibles and co-payments are your responsibility. Before coverage kicks in in 2022, you’ll have to pay a $1,556 Part A deductible, and a percentage of the cost of extended hospital stays, $389 per day for days 61-90 in the hospital and $778 per day beyond that.

4. Medicare does not cover most dental care

Medicare does not cover routine dental appointments, tooth cleanings, fillings, dentures, and most tooth extractions. Most Medicare Advantage plans also cover basic cleanings and X-rays, although they usually have a $1,500 annual coverage cap.

4. Medicare does not cover routine vision care

Routine eye exams and glasses are usually not covered by Medicare (exceptions include an annual eye examination if you have diabetes or cataract surgery eyeglasses).

6. Medicare does not cover hearing aids.

Routine hearing checks and hearing aids, which can cost up to $3,250 per ear, are not covered by Medicare. Medicare Advantage plans cover fitting exams, hearing aids, and other discount programs that offer lower-cost hearing aids.

7. Medicare does not cover Overseas Medical Care

Except in very limited instances, Medicare usually does not cover care received when traveling outside the United States (such as on a cruise ship within six hours of a U.S. port).

Contact Information:
Email: [email protected]
Phone: 3604642979

Aaron can help you and your family to create, preserve and protect your legacy.

That’s making a difference.

Analysis of Medicare Part D Prescription Drug Costs — Astounding and Disappointing

July 12, 2022 /by mark heinrich

How much could strongly promoted medications cost our seniors? Is there anything else Medicare beneficiaries should know?

The Centers for Medicare and Medicaid Services (CMS) mandates that insurers offer Part D medication insurance. Most insurers must cover at least two prescriptions in most categories, including heart meds, arthritis, and depression/anxiety. Three well-known “designer drugs” from each category were chosen at random. They’re all famous brands thanks to advertising.

A generic choice in each group was also given as an alternative when using Medicare’s find plans feature. The analysis involves a dozen medicines. As per Medicare’s tool, the results are for the year 2022.

We have nothing against these medications or their makers. They’re vital for millions of senior Americans’ health. But they come with a “sticker shock” price.

To traverse this “consumer-driven” health landscape, examining your data by the output sections is vital. First, see whether any Part D plans cover your drug.

Like Lipitor versus Atorvastatin, some brand names aren’t covered by Medicare part D â€‹â€‹â€‹â€‹â€‹â€‹â€‹ plans. In the analysis:

â€¢ The plan with the lowest premium plus prescription expenses doesn’t cover four of the nine brand-name drugs.

â€¢ Four of the five tiers covered the rest.

You should also check for restrictions:

â€¢ Does the prescription require pre-authorization?

â€¢ Will there be a quantity limit?

Only two arthritis medications require pre-approval, and three have dosage restrictions. Celebrex’s generic version has a quantity limit, but Celebrex doesn’t. Preauthorization isn’t necessary for any cardiac or depression/anxiety drugs. However, three have quantity restrictions.

Also, consider costs. The costs in the chart are from the most affordable Part D plan. Most promoted medications cost above $1,000 per year, and seven of the nine brands have significant expenses. Prices ranged from roughly $3,000 to over $85,000 per year.

Do retirees see changes in Medicare Part D costs during annual open enrollment?

No. Most Medicare Part D plan holders don’t re-shop. They don’t know their in-network pharmacies are no longer in-network. Less than 30% of Medicare beneficiaries reevaluate their Part D or Medicare Advantage plans with Part D during yearly enrollment. It grows worse with age:

â€¢ 65% of those aged 65-74 didn’t shop for insurance during open enrollment;

Using the plan-finding tool is too hard for many elderly Americans. So how will they inform themselves?

We asked a local pharmacy how one can compare prices for a Part D plan. He said no one at the pharmacy would know about any local pricing possibilities. Even the pharmacist won’t know costs until the insurer bills. And the costs for the same prescription vary between Part D plans. He suggested checking with your carrier or simply Googling it.

How is this acceptable?

More key points

This analysis’s extra notes may help you investigate Part D:

The cost of non-covered specialty medications is unaffordable for most patients. Still, they’re highly advertised, intending patients to ask for them by name. Be careful!

â€¢ It’d be reasonable for all the generics to be found in tier 1 pricing. But in this study, they were ranked differently. (See chart.)

â€¢ Only one generic in this analysis costs $1/month. Their brand version is $3.50 or $9.50 each month. The pricing of generic medications is neither predictable nor consistent.

â€¢ In this analysis, only one pharmacy was preferred, in-network. The preferred pharmacy’s drug pricing should always be lower than non-preferred or OON pharmacies. Not really. Four of the nine brand-name medicines have the highest cost at the preferred in-network pharmacy. Out-of-network pharmacies are offering the lowest prices for the same four medications.

â€¢ Is mail order always the cheapest option? No. Only four of the 12 medications had it. Most times, it was within $10. But Celecoxib’s postal order is $56 more. Xeljanz’s is $110. Rexulti’s is $130 more.

Consider Medicare Part D Options Before 65

This short analysis required hours to understand how Medicare Part D works. It’s complex, to put it mildly. There’s no consistency. You don’t know what you’re missing unless you go deep into the results. You can’t rely on one drug’s findings to be the same in all Part D plans.

But we expect our seniors to do this every year. That’s wrong.

The “consumer-driven” Medicare program begins at age 65. You’re fully responsible for all analysis, appraisal, and interpretation of Medicare’s find plans tools. Every year of retirement.

Waiting until 65 to start your own drug plan is a mistake. Depending on your medication, you may be overpaying by thousands of dollars annually. Also, call for a specialty drug. Call every insurer that covers your medicine. Begin exploring all options well before you need to make a decision.

Call an independent insurance broker to help you work things out. Call a State Health Insurance Assistance Program volunteer. All viable options. But you don’t want to go into these discussions blindly.

Contact Information:
Email: [email protected]
Phone: 9187441333

Bio:
Mark, a lifelong Tulsan graduated from Westminster College, Fulton, Missouri with a Bachelor of Arts in Accounting. Mark served in the United States Army as a Captain in the 486th Civil Affairs BN. Broken Arrow, Oklahoma and retired in 1996. Mark is married to his high school sweetheart Jenny and has four beautiful children. Mark’s passion for his work, which includes over 20 years in the Financial Industry started as an Oklahoma State Bank Examiner. Mark examined banks throughout Oklahoma gaining a vast knowledge and experience on bank investments, small business and family investments. Markâ€™s experiences include being formally trained by UBS Wealth Management, a global investment firm where he served as a Financial Consultant specializing in Wealth Management for individuals & families. Mark is a licensed Series 24 and 28 General Securities Principal and an Introducing Broker Dealer Financial Operations Principal. Additionally, Mark is a Series 7 and 66 stockbroker and Investment Advisor focusing on market driven investments for individuals, businesses and their families. Mark specializes in providing financial knowledge, ideas, and solutions for federal employees, individuals, families and businesses. We serve as your advocate, and assist you in the design and implementation of financial strategies while providing the ideas to maximize your security and wealth. Our goal is to give you maximum control of your financial future. We provide the expertise to help you with personal issues such as: practical tax Ideas, risk management, investment solutions, and estate preservation. Additionally, we’ve counseled hundreds of employees on their transitions from careers in federal government, and private industry to their next life stage, whether that is retirement or a second career. We specialize in devising strategies that roll your TSP, 401(k), pension plan, to a suitable IRA to meet your objectives.

Disclosure:
Securities offered through GRF Capital Investors, Inc., 6506 South Lewis Avenue, Suite 160 Tulsa, OK 74136 Phone: 918-744-1333 Fax: 918-744-1564 Securities cleared through RBC Capital Markets, LLC. 60 South 6th St., Minneapolis, MN 55402 Member FINRA www.finra.org / SIPC www.sipc.org Broker Check http://brokercheck.finra.org/

Avoid the Repercussions of Rejecting FEHB Coverage

June 26, 2022 /by todd carmack

If you are a federal employee, you may be eligible to receive a whole slew of benefits from the first day of employment, including Federal Employee Health Benefits (FEHB) coverage. FEHB coverage is available to federal employees as an employer-sponsored plan unless otherwise excluded via regulation or law. Depending on the agency you are employed by, your overall eligibility depends on various rules. Additionally, the healthcare offered by FEHB plans does meet the minimum value standard of the Affordable Care Act (ACA). Unfortunately, the FEHB program experiences increases in premiums each year, which has many long-term employees considering dropping FEHB late in their careers.

While there are various reasons for opting for another health insurance option, including private sector employment coverage through a spouse, making such a significant change late in the game can carry consequences. The coverage set forth by an FEHB policy extends into retirement years to continue providing health benefits well after your career has come to a close. If you are entitled to retire within the civilian retirement system, a minimum of five years of continuous FEHB plan enrollment is required. In rare cases, a five-year requirement waiver may be deemed acceptable instead of continuous enrollment. Should you opt to bypass enrollment or cancel it, your signature certifies an understanding of the effect this choice will have on your coverage past retirement.

As an annuitant, should you choose to cancel your FEHB plan enrollment, your chances of re-enrollment are slim to none. The only exception would be if your cancellation or suspension were related to Medicare managed care plan (TRICARE, CHAMPVA, etc.) enrollment. Furthermore, your family will face the consequences of your choices, with complete coverage ineligibility should you convert to a private, non-group policy. Ultimately, should you be curious about whether dropping out of an FEHB program is right for you, you should avoid it altogether unless youÃ¢â‚¬â„¢re confident in your ability to re-enroll in the program.

Contact Information:
Email: [email protected]
Phone: 6232511574

Lawmakers Attempt to Increase Retirement Age in an Effort to Save Social Security & Medicaid

May 26, 2022 /by todd carmack

Recently, lawmakers have struggled in vain to ensure Social Security assurance for our senior citizens. The current financial stability of the Social Security program poses serious threats to Medicare, tax caps, and the modern retirement age, as lawmakers explore several solutions. With statistics showing Americans currently live longer, it enforces advocates to insist on increasing the age citizens are eligible to take advantage of Social Security benefits. Does an increase in the tax cap or retirement age make sense to aging senior citizens, and what are the future implications?

Depleted Concern or Depleted Funding?

While the statistical data implies modern-day Americans live longer than ever before, lawmakers are currently considering a retirement age increase from 65 to 69 by 2030 if they ultimately fail to raise it to 75 by the year 2032. Ultimately, the goal of multiple senators in favor of the proposal is to claim this is the best solution to getting a grip on our nation’s climbing debt crisis. This concept involves adjusting retirees’ long-term benefits rather than raising revenue through taxation.

Other lawmakers favor an increase in the income subject to Social Security and Medicaid taxes, claiming it is a fair solution for higher earners. Currently, the tax cap sits at $147,000, which may face either total elimination or significant increases should Social Security and Medicaid suddenly become insolvent. At our current rate, experts expect Social Security to be entirely depleted by 2034. However, with the increased number of senior citizens and improved life expectancy, it’s concerning to wonder whether Social Security could disappear altogether.

Could Social Security Disappear Entirely?

As Americans continue to reach retirement age or linger a few years behind it, many are left to wonder whether Social Security can go bankrupt or disappear entirely. If Social Security had failed to exist at all, nearly half of all elderly would live in a state of poverty. Currently, roughly 10% of America’s aging citizens live in poverty. But, thus far, the government-funded program has provided a steady source of income for aging, retired workers to rely on from month to month. Protecting this program could mean the difference between taking care of or leaving them to live in unacceptable living conditions.

Unfortunately, the demographic changes have put Social Security in a tough spot, falling short by nearly $17 trillion. Some experts blame baby boomers for leaving the workforce in droves, and as they retire, they are also living longer and consuming more Social Security funds than ever before. As time marches on, our society is witnessing record-low birth rates, which threatens the worker-to-beneficiary ratio the program relies on so heavily. If lawmakers halt efforts to increase the retirement age or tax cap, Social Security could face insolvency.

Contact Information:
Email: [email protected]
Phone: 6232511574

Bio:
I grew up in Dubuque, Iowa, where I learned the concepts of hard work and the value of a dollar. I spent years in Boy Scouts and achieved the honor of Eagle Scout. I graduated from Iowa State University and moved to Chicago and spent a few years managing restaurants. I then started working in financial services and insurance helping families prepare for the high cost of college for their children. After spending years in the insurance industry, I moved to Arizona and started working with Federal Employees offing education and options on their benefits. I became a Financial Advisor / Fiduciary to further help people properly plan for the future. I enjoy cooking and traveling in my free time.

Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.

The Positive and Negative Aspects of Working In Retirement

May 20, 2022 /by todd carmack

According to a Natixis Investment Managers survey from 2021, 42% of retirement savers fear they won’t be able to retire. The group behind that percentage, in particular, includes retirees with $100,000 to $450,000 in investable assets – individuals who have already started building their nest eggs.

Working longer is the common-sense option for underfunded retirement savers. If you imagine retirement as a series of leisurely days filled with interests and personal time, the prospect of returning to work may be unappealing. There are unquestionably disadvantages to working in retirement, but there are also benefits.

By examining both sides as objectively as possible, you can develop the best plan for your senior years. Begin by going over this list of three benefits and two drawbacks to working in retirement.

Pros

Pro 1: The income increases the longevity of your retirement savings.

Your reliance on retirement withdrawals will be reduced due to your working income when you work. You’d continue to meet your living expenses with your wages and invest your savings in an ideal world. The longer you invest, the higher your growth potential.

Pro 2: You’re less likely to become bored.

TD Ameritrade polled 2,000 people aged 40 to 79 in 2019 to find out what might encourage them to return to work after retirement. 60% of those who have not yet retired stated they would return to work due to boredom. By the way, boredom is a reason cited by 67% of those returning to work.

Pro 3: You Could Be Eligible for a Higher Social Security Payout.

When you delay claiming Social Security, you give up immediate income in exchange for a larger monthly amount later. So, if you work in retirement while delaying Social Security, you should get more money.

This benefit increase is granted after reaching full retirement age (FRA), and it’s based on your earnings history. Your FRA is the age at which you are eligible for full benefits. Your FRA would be between 66 and 67 if you were born after 1942. Please create an account at My Social Security to find yours.

If you apply for Social Security benefits before FRA, your total payout will be cut by around 30%. If you file your claim after the FRA, your benefit will be increased by up to 32%.

Now that you know the pros, here are some cons of early working in retirement.

Cons

Con 1: Your Social Security payment may be reduced (temporarily).

You are subject to income limits if you retire and collect Social Security before your FRA. The Social Security Administration (SSA) will cut your federal retirement payments if your income exceeds certain limits.

The impact of these on your Social Security benefits could be substantial.

For example, if an individual is working in retirement and their income exceeds $19,560, the SSA will deduct $1 from their Social Security benefits for every $2 they earn above that amount.

This will continue until the year you reach FRA, at which point the threshold will increase. In 2022, the income threshold for the year you attain FRA is $51,960. Your benefit will be reduced by $1 for every $3 you earn above $51,960.

Con 2: You won’t have as much time for other activities.

Perhaps the most significant disadvantage of prolonging your career is the time commitment it entails. When you work, you can’t go to see your family or do what you want to do.

With part-time employment, you might be able to enhance your work-life balance. Another choice is a compensated opportunity that integrates a pastime or involves a cause that is important to you.

Working in retirement has its advantages and disadvantages.

Working in retirement may not be the best option, especially if you don’t enjoy your current position. However, it’s difficult to dismiss the financial advantages. Your savings account can keep growing.

You will also get more money from the government if you delay taking Social Security.

On the other hand, continuing to work may be counterproductive if you file for Social Security early. Moreover, If you earn more above a specific limit, your Social Security payout may be reduced.

Contact Information:
Email: [email protected]
Phone: 6232511574

Benefits of the Social Security Online Statements, by Joe Carreno

April 26, 2022 /by joe carreno

While the government works to reopen its field offices, the Social Security Administration (SSA) recommends that recipients seek assistance via the agency’s website first.

However, many people are apprehensive about applying for help on the internet. According to the Boston College Center for Retirement Research, only about half of retirees have used this method since 2013. This is regardless of the fact that, according to an executive order recently issued by President Joe Biden, the SSA has enhanced its online application abilities and is expected to do much more in the future.

Another helpful resource, according to CNBC, is the recently redesigned online benefit statements, a tool that can offer essential information for improving your Social Security retirement payouts.

You may view your statements online by registering a “My Social Security” account. Individuals over 60 who haven’t claimed benefits or set up an online account may have their statements sent via mail three months before they turn 60.

The SSA hopes the new design will simplify federal employees’ process to acquire information and streamline the agency’s complex processes. These assertions are now backed up by fact sheets aimed at specific age groups.

They recommend that workers of all ages review their statements at least once every year to ensure it’s accurate. This is true for employees, from age 18 to 70 years who participate in the program.

Experts believe that such information could also disclose how to get the best out of these benefits. Other information that isn’t specified in those statements should also be looked for.

A Tool for Estimating Your Retirement Benefits

As a result of these changes, the benefit estimates are shown in a bar graph in blue on the new statements when someone claims at nine different sample ages.

As you already know, if you file a claim at the age of 62, when you are first eligible, your payments will be permanently decreased.

Each year you delay until you reach the age of 70, the number of your monthly benefit checks will grow. If you file a claim when you reach full retirement age – 66 or 67, depending on your birth year – you will receive the amount of the full benefit you have earned.

Your advantages will climb even more if you wait until you’re older. This expires when you are 70, as there is no additional benefit for deferrals at that point.

From the ages of 62 to 70, the statement includes a graph that shows how much money you will get each month when you retire.

“The blue bar form is a wonderful addition for workers who need the information to help them make informed decisions about their benefits,” said David Freitag, a MassMutual financial planner, and Social Security expert.

Earnings Record

The new statements also include a table that shows a worker’s earnings history, with wages taxed for Social Security and Medicare broken down by year.

However, the statement only shows 20 years’ worth of earnings, whereas the prior statement style contained all of a worker’s earnings history. Workers’ personal “My Social Security” accounts have access to their entire salary history. According to experts, looking back only 20 years is quite limited, and it’s vital to go the extra mile to see your complete earnings history.

However, mistakes do happen. Therefore, the SSA estimates your average monthly earnings based on your 35 highest-earning years. The SSA and other experts recommend that workers review their earnings history to ensure that it displays the exact amount earned each year and that no income has been omitted.

Joe Elsasser, founder and president of Covisum, a Social Security claiming software firm, said that checking the record of your past earnings in your statement “is a valuable exercise for folks to perform to make sure they don’t have any misreported wages.” Sometimes people get a zero when they shouldn’t, he explained.

If you worked in employment where you earned a pension but did not pay Social Security taxes, seeing your whole earnings history will help you figure out how much of your benefits will be changed. The Windfall Elimination Provision, sometimes known as the Government Pension Offset, affects your and your family’s benefit eligibility.

“Seeing the whole revenue history is the only reliable way to test for WEP/GPO offsets,” Freitag stated.

Benefits for Disabled People And Survivors

Also, the statement predicts how much money you would make each month if you were to get disability benefits. This is in addition to finding out if you are eligible for retirement benefits.

There are also estimates of how much money your qualified spouse or children will get each month if you die.

Eligibility for Medicare

The benefits statement will also tell you if you have accumulated enough credits to be eligible for Medicare at the age of 65.

While it is not required to enroll in Medicare Part B when you turn 65, the SSA warns that failing to do so may result in delays or increased monthly costs in some cases.

Key Points

Social Security Administration is working to strengthen its online services, such as the benefit application portal.

The Social Security Administration’s online benefit statements have been updated.

According to experts, the Social Security online statement can provide information on how to get the most out of your benefits.

Contact Information:
Email: [email protected]
Phone: 8139269909

Bio:
For over 30-years Flavio “Joe” Carreno of The Retirement Advantage has been a Federal Employee Retirement System specialist (FERS) as well as a Florida Retirement System specialist (FRS) independent advocate. An affiliate of PSRE (Public Sector Retirement Educators), a Federal Contractor & Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants. We will help you understand your FERS & FRS Benefits, TSP & Florida D.R.O.P. withdrawal options in detail while recognizing & maximizing all concurrent alternatives available.Our primary goal is to guide you into retirement with no regrets; safe, predictable, stable, for life. We look forward to visiting with you.

Disclosure:
Not affiliated with the U.S. Federal Government, the State of Florida, or any government agency. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation. Although we make great efforts to ensure the accuracy of the information contained herein we cannot guarantee all information is correct. Any comments regarding guarantees, safe and secure investments & guaranteed income streams or similar refer only to fixed insurance and annuity products. Fixed insurance and annuity product guarantees are subject to the claimsâ€paying ability of the issuing company. Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values. Annuities are not FDIC insured.

Medicare Parts Explained. Sponsored By: Aaron Steele

September 27, 2021 /by aaron steele

Everyone should plan for their retirement, almost as soon as they start working. Adequate preparation is one of the crucial factors that separate those who retire well from those who do not. One of the ways to prepare for your retirement is to consider what healthcare insurance you will use at old age. Medical insurance will ensure that you retire with peace of mind, knowing there is something you can fall back on in the case of a medical emergency.

Eligible Americans have the option to partake in different medical insurance programs, including Medicare. Medicare is a federal government health insurance scheme established to cater to the medical needs of retirees. People at least 65 years old or younger than 65 with disabilities or conditions, such as end-stage renal failure, ischemic stroke, cerebral palsy, and other qualifying disabilities, may be eligible for Medicare.

Medicare has four parts, and many people find these parts confusing. Medicare Part A covers payments for hospital admission, supplemental nursing care following discharge, hospice care, and other in-home healthcare services. Medicare Part B covers payments for outpatient services, doctor appointments, mental health services, ambulance costs, and other diagnostic and preventive procedures. Medicare Parts A and B are known as the Original Medicare programs. Medicare Part D covers payments for prescribed medications.

Medical Part C, Medical Advantage as popularly called, has more coverage than other Medicare Parts. Unlike other parts, Medicare Part C is offered by private medical insurance providers. Participants get cheap access to healthcare, including medications, eye, dental, ear care, and chiropractic appointments.

Medicare Part C also covers costs for chronic conditions, including diabetes and cardiovascular diseases. Participants also get other services that promote overall wellness. Participants need not worry about the cost of surgeries, hospital stays, and costly medications. In addition, from October 15 to December 7 every year, participants of Medicare C can change their health insurance plans. This period is known as the Annual Enrollment Period.

In addition, participants who opt for the Medicare Advantage plan pay lower premiums. All participants, regardless of age or underlying medical conditions, pay the same premiums for the program. Another benefit of the Medicare Advantage plan is the annual out-of-pocket limit that helps participants keep premiums within affordable limits.

Some insurers even offer Medicare Part C plans without monthly premiums. However, these plans are better for patients who will not need regular medical care, as monthly plans have better coverages. Participants will also do better with plans that have a network of credible providers. These providers usually offer better services for senior citizens as a result of their years of experience. Getting a Medicare Advantage plan that fits your situation won’t be a problem as there are many options from which you can choose.

However, if none of the Medicare Advantage plans suits your needs, you can opt for Medigap or Medicare Supplement plans. These plans are also cheap when compared to the original Medicare plans. It is important to learn all you can about Medicare because you never know when the knowledge will come in handy. You can learn more about the health insurance plans at medicare.gov.

How COVID-19 Has Affected Social Security and Medicare Services. By: Kathy Hollingsworth

August 25, 2021 /by leslie "kathy" hollingsworth

The death toll from COVID-19 in the United States is well over 500,000. Out of this sad figure, over 450,000 deaths were older members of the society—Americans who were at least 65 years old. These people were members of the society that benefited mainly from Social Security and Medicare services. The deaths are not the only impact of the pandemic on these two critical federal programs. There are other effects that the pandemic has had and will keep having on the millions of Social Security and Medicare beneficiaries who overcame the pandemic.

Social Security Systems and Intricacies

Popularly known as “Pay-as-you-go,” Social Security is one source of income for workers after retirement. While still in service, workers contribute to the program through payroll taxes. The funds from payroll taxes go into the Social Security Trust Funds, the same funds that pay those currently eligible to receive Social Security benefits.

At the start of the program, the money coming into the trust fund through payroll taxes was more than it was paying out to beneficiaries of Social Security. The table has since turned because there are more recipients than contributing workers now. If the downward trajectory continues, the Social Security Trust Fund will be empty, and recipients will only get paid from contributions from payroll taxes. Experts say contributions from payroll taxes will only be about 77% of the full benefits that current recipients get from Social Security.

Though this phenomenon existed before the COVID-19 pandemic, the pandemic has affected the Social Security Trust Fund balance as well.

How has the COVID-19 Pandemic Contributed to the Dwindling Social Security Trust Fund Balance?

The pandemic has contributed significantly to the dwindling balance of the trust fund due to some reasons, which we have listed below. The effects have been so extensive that experts have projected that the Social Security Trust Fund balance will become empty two years faster than estimated before the pandemic. The earlier projection was for 2035, but it has moved up to 2033 because of the pandemic, experts say. Here are reasons why the COVID-19 pandemic has affected Social Security.

Many businesses stopped operations, which led to an increase in the unemployment rate.
The pandemic led to a reduction in work hours, which translates to lower incentives.
The government deferred withholding payroll taxes to ease the burden of workers and businesses during the pandemic.
More people signed up for benefits during the pandemic.
Many contributing workers died during the pandemic.

All these points are reasons for reduced payroll taxes, meaning the Social Security Trust Fund will indeed empty faster than pre-COVID projections.

National Average Wage Index, Social Security Benefits, and COVID-19

National Average Wage Index (NAWI) is one factor that determines how many benefits recipients can receive from Social Security. The index analyses how wages grow and use the information to determine the trajectory of inflation. As a result of the pandemic, the index for 2020 might be lower than preceding years.

What does this mean for Social Security beneficiaries? The Social Security Administration measures a recipient’s benefits using some criteria, including the NAWI, for the year the recipients turn 60 and will be eligible for Social Security benefits. So, those that clocked 60 in 2020 will receive fewer benefits than usual due to the pandemic. Sadly, they will continue receiving the reduced sum for the rest of their lives.

In September 2020, the Congressional Budget Office (CBO) predicted the 2020 NAWI would be -3.8% compared to 2019. More recently, the CBO has said it expects the 2020 NAWI to be closer to -0.5%. This means that benefits will be lower for anyone turning 60 in 2020 but not as low as initially predicted.

Compared to projections in 2020, things seem to be turning up. In September last year, the Congressional Budget Office (CBO) estimated that the NAWI for 2020 would be -3.8% compared to the index for 2019. The office has since recanted that statement because of recent events. The CBO now estimates the 2020 NAWI to be around -0.5%, meaning the benefits will be low but not as low as CBO had projected last September. However, this only affects individuals that turned 60 in 2020.

Effect of the Pandemic on Social Security Benefits for Disabled

According to a Social Security actuaries prediction of November last year, people who had COVID-19 but survived the infection could later suffer some lasting effects from it. As a result, more people will sign up for Social Security disability benefits in 2021 and the two years after it.

Effects of COVID-19 Legislation on Social Security

Another effect of the pandemic on Social Security is its legislation on the program and its beneficiaries. Even beneficiaries of the Supplemental Security Income will be affected by COVID-19-spurred legislation, such as the CARES Act, Consolidated Appropriations Act, and the American Rescue Plan Act. Here are the effects of the pandemic on Social Security:

The pandemic led to three Economic Impact Payments of $1,200, $600, and $1,400.
It also led to a reduction in FICA taxes that disturbed the prompt payment of FICA while ensuring that the decline and delay will not negatively affect the Social Security Trust Fund.
It caused a pause in the receipt of student loans from Social Security payments.
The Social Security Administration also received $300 million to support the fight against COVID-19.
The pandemic led to an extension of payroll tax repayments.
It also caused an extension of the qualification criteria and amount of Child Tax Credit and Earned Income Tax Credits. In contrast, the statutory exclusion to both tax credits remained the same.

Expected Lasting Effects of the Pandemic on Social Security

About three months ago, Social Security actuaries projected some lasting effects of the COVID-19 pandemic on Social Security. The agency projects that nothing significant will result from the pandemic. There will be a pandemic-spurred recession, which would have ended by 2023 with only minor permanent damage.

However, the agency projects some short-term effects such as:

Reduced birth rates in 2020 and 2021.
Increased death rates in 2020 (12% higher than usual), 2021 (6% higher than normal), and 2022 (2% higher than usual).
A reduced number of people applied for disability payments in 2020, but the figure will be higher in 2021 and 2022.
More unemployment in 2020, but things would have returned to normal by 2023.
GDP, productivity, and earning levels will suffer a lasting reduction of 1%.

The Medicare System and Intricacies

Medicare is a federal insurance coverage plan for older citizens (65 and above), people with disabilities, and those living with End-Stage Renal Disease (ESRD). The Centers for Medicare and Medicaid Services (CMS) is a branch of the U.S Department of Health and Human Services that runs the program through payroll taxes, participants’ premiums, and funds from the government. The CMS makes Medicare payments through the Hospital Insurance (HI) and the Supplemental Medical Insurance (SMI) Trust Funds. While HI funds Medicare Part A (Hospitalization), SMI funds Medicare Part B (Medical) and Part D (Prescription Drugs).

HI Trust Fund’s primary source of financing is payroll taxes. This source has been dwindling for a while, just like the Social Security Trust Fund. Without the contributing effect of last year’s pandemic, experts had projected that by 2026, the HI Trust Fund would only be able to pay 90% of hospitalization costs of the participants of Medicare. On the other hand, the SMI Trust Fund, which gets most of its funds from premiums and government allocation, will continue to finance Part B and Part D without problems. This does not mean it will remain untouchable. With inflated premiums and more reliance on government allocation, it is bound to encounter its challenges down the line.

Effects of the Pandemic on HI and SMI

HI Trust Fund will shoulder the bulk of the pandemic effects on the Medicare Trust Funds. The extent of the damage is not known yet. As the 2020 Medicare Trustees Report states, the trustees cannot accurately give a projection that accounts for the effects of the COVID-19 pandemic at this time.

According to CBO, around two million Medicare participants will need hospitalization due to coronavirus infections during the pandemic. Of this figure, the CBO estimates that 1 million would be in hospitals under Medicare’s inpatient prospective payment system. As a result, the CBO states that the CMS would be spending about $3 billion more than the average in 2020 and 2021.

The SMI Trust Fund will also be indirectly affected. By 2030, Medicare trustees project a 6.3% increase in the percentage of personal and corporate income taxes for financing SMI and a 14.3% increase by 2094.

Effects of the Pandemic on Medicare Participants

There are several ways through which the pandemic will affect Medicare participants apart from the possibility of death or permanent disability. According to a CMS survey, here are some effects the pandemic has already had on Medicare participants.

About 21 participants had to avoid going to the hospital for non-COVID-related issues.
15% of the participants in the survey said they felt more worried about financial security.
41% said they had challenges coping with stress.
38% said they were having challenges maintaining a relationship with their friends and family.

Medicare participants receiving medical care from their housing also suffered from the following effects:

They needed more social service support.
They felt more lonely and depressed.
Those with physical and mental health conditions had to deal with worsened symptoms.
More of the participants resorted to alcohol and drug use/abuse.
The rate of domestic violence rose.
They also experienced a shortage of medical staff and equipment.

On the flip side, the pandemic had some positive effects on the participants as well:

Medicare participants don’t have to pay for COVID-19 vaccines, tests, and treatments.
They also have a broader coverage of medical services, including telehealth services and hospitalization when required.

Effects of the Pandemic on Physicians, Hospitals and Other Medicare Providers

Within the first six months of the COVID-19 pandemic, Medicare providers, such as hospitals, experienced the following:

Payments for fee-for-services decreased by 39%, inpatient services by 33%, and physician services by 49%. These figures rose to 96%, 93%, and 95%, respectively, by 1st July.
At the end of the sixth month of 2020, cumulative payment deficits ranged from 12% to 16%.
There was also a drastic reduction in the need for personal preventive screening and surgical services.

COVID-19 Legislation and Medicare

The bulk of COVID-19 legislation impacted Medicare. In fact, within the first seven months of 2020, over two hundred regulatory changes were made, with about forty-nine more by the eighth day of January 2021. Here are some COVID-related regulatory changes that affected Medicare:

Expansion of Medicare coverage for telehealth services
Removal of cost-sharing for vaccination procedures
Increment of Medicare payment fees to providers
Special waivers on certain hospital length-of-stay criteria
More increment of payment fees to physicians
Elimination of sequestration slashes for March 2021

These changes were made through the CARES Act and the Consolidated Appropriations Act. The first four changes were made through the CARES Act, while the last two were made through the CAA.

Lasting Effects of the Pandemic on Medicare

Like Social Security beneficiaries, participants of Medicare are people who are more susceptible to COVID-19. People in this category (older citizens who are 65 or older and people suffering from disabilities) might experience medical and financial concerns due to the pandemic.

Many participants had to pay a lot of money to take care of pre-existing medical conditions. As a result, they were suffering from some monetary challenges even before the pandemic. The pandemic led to some regulatory changes that helped reduce these costs, but the respite will only be short-lived.

These monetary challenges will only worsen with the increase in the unemployment rate, especially for older members of marginalized communities who received fewer incentives before retirement. They also have fewer Social Security benefits and reduced retirement contributions. The result of all this is that the pandemic will have more permanent effects on Medicare and Medicare participants.

Tag: Medicare

medicare

Learn How To Save on Medicare Part B premiums

Simple Ways to Manage Health Care Costs in Retirement if You Plan Now

Medicare Doesn’t Cover These 7 Things.

Analysis of Medicare Part D Prescription Drug Costs — Astounding and Disappointing

Avoid the Repercussions of Rejecting FEHB Coverage

Medicare Parts Explained. Sponsored By: Aaron Steele

TSP & Retirement

Insurance