Medicare can be confusing and the terminology doesn’t help.  We’re going to dedicate a few posts to give simple explanations regarding Medicare Supplement Plans, also known as Medigap Plans. These terms are used interchangeably to describe the same product.

What is a Medicare Supplement or Medigap plan?
(We’ll refer to them as Medicare Supplements in this discussion)
A Medicare Supplement is a supplement health insurance plan purchased from a private insurance company by Medicare beneficiaries who have previously enrolled in Medicare Part A and Medicare Part B.

• Coverage: Medicare Supplement plans help pay for services that are not covered by Medicare.

• Plan Types: Medicare Supplement plans are labeled with letters A-N and are regulated by the Federal Government. Although, plan availability may differ by state. Example: Plan F in Texas will have the same exact benefits as Plan F in another state. The ONLY difference will be price.

• Cost: You will pay a monthly premium for a Medicare Supplement plan. Premium prices will vary by age, zip code and insurer. Example: ABC Insurance Company offers Plan F for $125.00 per month. However, XYZ Insurance Company offers Plan F for $115.00 per month. They are the same plan but the premiums are different. Hint: It is always good to shop around.

Note: You must enroll in Medicare Part B prior to purchasing a Medicare Supplement plan

We’ll cover more about this subject in future posts. We hope this information is helpful. Please feel free to contact one of our licensed HybridCare team members with any questions or if you would like a quote on a Medicare Supplement. HybridCare specializes in Medicare Supplement insurance and offers plans from multiple providers to ensure the lowest price.  Medicare.gov provides a helpful Medigap guide.

Question: What else do you want to know about Medicare Supplement Insurance or Medigap plans? (comment below)

Understanding Medicare

In a recent Market Watch article, Kristen Gerencher provides insight into these misconceptions that could end up costing you money. Here is a list of these common misconceptions. I have linked to the main article below as well but, here are the bullet points.

1. Medicare works like private health insurance: No. “With Medicare, you can’t be rejected for coverage because you’re too sick, and you won’t face higher premiums if you’re ill. But if you’re a high earner, you’ll pay a premium surcharge for Medicare Part B, which covers doctors’ visits and outpatient services, and Part D, which covers prescription drug costs.”

2. Medicare provides free or cheap health care:  It depends.  “Medicare Part A, which covers hospital stays and services, is premium-free for most people. But that’s where the freebies end. Traditional Medicare involves a matrix of premiums, copays, coinsurance and deductibles. For instance, you’ll have to meet a deductible — $1,132 for 2011 — before Part A coverage kicks in for hospital stays of up to 60 days. For beneficiaries new to Medicare this year, the average premium for Medicare Part B is $115.40 a month. But if you earn more than $85,000 if you’re single, or $170,000 for a married couple filing jointly, you’ll pay more.”

3. Medicare covers everything:  Not Always. “Traditional Medicare doesn’t cover routine dental care, eyeglasses, hearing aids or custodial long-term care.”

4. You can sign up for Medicare at any time: It could cost you! “As soon as regular employer insurance ends, “the person with Medicare who had been relying upon employer coverage needs to rely on Medicare and enroll in Medicare B,” Baker says. “A lot of folks don’t know that.” If you’re unsure when you should sign up for Medicare, ask your human-resources department or call the Social Security Administration. You also can contact your state health insurance assistance program at SHIPtalk.org, call Medicare (1-800-Medicare) or the Medicare Rights Center hotline (1-800-333- 4114).”

If you have questions about this subject, Medigap (Supplement) plan options or retirement questions, please contact HybridCare.  We’ll be happy to assist you and your family.

Article information credit: Kristen Gerencher (MarketWatch) Four Medicare misconceptions that can cost you (Feb. 21, 2011)

You’ll want to do your homework on this one! I’ve been keeping an eye on the events swirling around long term care. I can tell you one thing. Preparing for long term care is going to be a challenge for Baby Boomers and their families. There is no getting around that fact.

Did you know that Long term care in an assisted living center or nursing home can cost $3000-$5000+ per month?  The average stay in a nursing home is 14 months (according to the August 2010 report by the Journal of the American Geriatrics Society), but an assisted living center stay could last several years.  My wife’s grandmother was in an assisted living center for a few years and the nursing home (acute care at the same facility) for several months.  Thankfully, my in-laws had the means to pay a large portion of the costs.  Practically everyone has a similar story.

Last year, insurance giant Met Life announced it would be leaving the Long Term Care market. Recently, Guardian Life Insurance Company of America announced that it too would be exiting the market. The Federal Government has entered the market with the Community Living Assistance Services and Support or CLASS (a government entitlement program designed to provide long term health care benefits). CLASS has it’s own funding pitfalls like it’s counterparts, Medicaid, Medicare and Social Security. You can read more about CLASS legislation here.  With the advent of the Federal Government moving into the long term care market (via CLASS), we can expect more private providers like Met Life and Guardian Life to exit the market as well.

Good news!
There are alternatives to traditional Long Term Care insurance that provide the same protection with more flexibility. If you are one of the estimated 79 million Baby Boomers, its time to look at these alternatives. Healthy retirement planning requires preparing for long term health care needs. You can have all your money properly invested in all the right places, but if you don’t insure yourself, those assets could be liquidated to pay for your long term care.

Insurance of any kind is based on one simple rule or law. You are going to pay a little money (premiums) to protect (insure) a lot of money (or assets). Alternatives to Long Term Care represent a hybrid of insurance solutions that allow you to be flexible if you don’t end up needing long term care.

Take charge of your long term health care and protect your family and assets by contacting an advisor at HybridCare today.  There is no cost to you to become informed of your options.

Do you need to have long term care insurance? (comment below)

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Credits: Article reference credited to: Brian Blase (The Heritage Foundation) & The Journal of the American Geriatric Society (Aug 2010 Report)

This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. Please consult with a professional specializing in these areas regarding the applicability of this information to your situation.

Below are the findings of a recent Harris Poll (February 2, 2011)

• 34% of Americans have no retirement savings
• 27% of Americans have no personal savings
• 22% of Americans age 65 and older have no retirement savings
• 14% of Americans age 56 and older have no personal savings
• 26% of Baby Boomers have no personal savings

If these numbers send chills up your spine, they should. This is your wake up call America!

Reality Check:
Baby Boomer retirement savings must increase. We are all aware of the fiscal crisis that programs like Medicare, Medicaid and Social Security are enduring today. Do you want to bet the farm on the government providing care for you in your retirement years? Syndicated radio host and author, Dave Ramsey has some of the best advice; “Don’t Count on the Government to Provide Your Retirement”. As life-changing legislation rolls out of Washington DC, it is time to become disciplined and intentional about our retirement planning.

Win IN the Future: There is Hope
In the 2011 State of the Union Address, President Barack Obama stated; “Americans must win the future”. The future is barrelling toward us, it can’t be won or lost. What the President ‘should’ have said was; “Americans must win IN the future“. If we want to win IN the future, we must plan properly at the present time. Baby Boomer retirement savings is vital to ensuring quality care and a comfortable lifestyle in retirement. In this case, hope is directly tied to discipline. You are your best hope for retirement!

Where Baby Boomers are investing retirement and personal savings?

• 28% of Baby Boomers’ retirement is “Relatively equal mix of stocks/mutual funds/bonds/money market funds”.
• 18% of Boomer retirement is “Mostly in stocks and/or mutual funds”
• 22% of Baby Boomer personal savings are in Bank CDs

Two risks jump out at me when I see the numbers listed above.

1. Market Risk (Stocks, Mutual Funds, Bonds & Money Market funds)
2. Inflation Risk (Bank CDs)

Discipline: Planning for Retirement

• 3-6 months of living expenses should be held in a accessible savings or money market account
• A portion of your retirement should be in the markets (based on your age).
• A portion of your retirement should be in a safe place where it is guaranteed to grow regardless of market behavior (or inflation) and provide a guaranteed income for the rest of your life. After all, you do not want to outlive your money and you want to leave a sound financial legacy to your loved ones.

Never Too Late: Call to Action
This is your reality check! As Baby Boomers retirement draws near, employ conservative strategies to insure a portion of your retirement. It is never too late!

Question: Do you have a retirement plan? (comment below)
NEW: Participate in the HybridCare Poll

Article and Statistical Information Credit: By Humphrey Taylor, Chairman, The Harris Poll, Harris Interactive

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This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. Please consult with a professional specializing in these areas regarding the applicability of this information to your situation.

How is Medicaid going be be funded as the Baby Boomer generation grows older?

Many Boomers were hard hit by the financial crisis of 2008-2009. There is a real possibility that there will be cuts and/or strict limitations on placed on Medicaid. The tension between the States and Federal Government are pushing the question into the main stream;

• What is the future of Medicaid?

Perhaps, the economic and political situation we find ourselves in today will lead to America finally dealing fiscal challenges and sustainability of programs like Medicaid, Medicare and Social Security.

Above is a discussion from Kaiser Health News “Health On the Hill” (Video) from 2/1/ 2011.
Link to Video

HybridCare is dedicated to bringing you relevant information and advice regarding healthcare and retirement. Each of us must engage the challenges and understand the long term implications of any legislation that cause changes in Medicaid.

Question: How are you preparing for healthcare challenges that may be in your future? (comment below)

Video Credited to http://www.kaiserhealthnews.org / © 2011 Henry J. Kaiser Family Foundation.

Accompanying article by Lance Cashion

“What your future retirement looks like depends on where you find yourself right now. The only way to be truly diversified is to have a portion of your retirement in a safe place where it is guaranteed to grow regardless of market behavior and provide a guaranteed income for the rest of your life. I like to call it “retirement insurance”. Insuring larger portions of your retirement as you age is the most important part of the diversification puzzle. No one can argue with that.” Read more here

Question: How comfortable are you with your retirement plan?

Hill says; “Far more people who are working in retirement are doing so because they want to, not because they need to. For them, there’s good news. The pool of part-time, flexible-schedule, professional jobs – precisely the ones that appeal to retirees – is growing.”

The Smart Money article continues; For many retirees, “‘working in retirement’ is quickly becoming a new stage in career progression,” a 2010 Families and Work Institute Study concludes Of the 20% of retirees currently working for pay, nearly half do it because they’d otherwise be bored or want to feel helpful or productive; 53% also say they’d like a little extra money. But just 18% say they work because their current retirement income is insufficient, according to the study.”

If you are currently retirement-age or approaching retirement age, where do you find yourself? You can work if you want to, and the choices are many.  The Smart Money article offers four interesting part-time career options for retirees.  Click here to read more; The Best Part-Time Jobs for Retirees (Author: Catey Hill)

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Credits: Article reference credited to Catey Hill (Smart Money) “The Best Part-Time Jobs for Retirees” Jan. 21,2011

Article: “medicare news: open enrollment begins today” (11/15/10)
See our post about medicare open enrollment scams as well.

As always, we recommend visiting www.medicare.gov for more information.

Please contact HybridCare if you need assistance with your Medicare or Health Insurance Needs.

1. Be careful sharing you personal and banking information with people stating that they “represent Medicare” or “endorsed by Medicare”
2. Stop the selection process if you do not understand how a product will function
3. If you feel pressured into buying, DO NOT BUY.
4. Use resources: Call 1-800-Medicare or go to www.medicare.gov
5. Learn what type of product suites you better; Medicare Supplement, Medicare Advantage, etc (contact us if you need more information)

The best thing you can do is educate yourself and your family about Medicare.
Our team is here to help answer questions. You MUST know how a product functions before you purchase. We encourage you to ask and compare.  Yes, there are a few crooks that make our job serving you more difficult.  However, we want to give you the knowledge and tools to protect yourself and make a good decision in regard to Medicare.  A knowledgeable consumer is a good consumer.

Contact us: (800)-772-2355

Call us to experience ‘Insane Customer Service’! (800)-772-2355