October 2022
Financial Planning

Medicare Enrollment Time is Here

By Myra Alport

I reached a new pinnacle in my life in that I turn 65 this month! Woohoo! In case I wasn’t sure of my age, for the past year or so my mailbox has been flooded weekly with Medicare postcards and other mailers reminding me that 65 was around the corner AND coincidentally at the same time as the new open enrollment period. Sound familiar? Wrapping my head around the ins and outs of the enrollment process and reviewing the numerous options and drug plans was equivalent to choosing college courses back in the day!

With all of the reminders I wanted to get my ducks in a row early on. Did I want a Medicare supplement (aka “Medigap” or “Gap” policy”) or a Medicare Advantage plan? Did I want a dental or vision plan (not included with basic Medicare or Medigap plans but offered through Medicare Advantage)? What prescription drug plan made the most sense for me? What were the costs of said plans and what medical carrier plans were approved for AZ residents? A family member in Minnesota may have different options, so best to keep an open mind. Fortunately, at my back was my friend Don, a Medicare broker who kept me on task along the way. He did much of the grunt work, for which I am truly grateful! Nothing about this process happens unless you are proactive.

Now, you may be wondering if I might have held off and remained on my employer’s medical insurance plan. The more I thought about it, I could have but it didn’t make sense for me to potentially incur the high deductible each year that I continue to work. I’m not a big gambler when it comes to my health, so I opted to drop my workplace insurance for Medicare Supplement G plus a drug plan. This was a personal choice based on many factors. There is no one size fits all approach.

The online Medicare enrollment process was fairly simple (remember we are dealing with a government agency). I learned pretty quickly that I needed to first log in to my online Social Security account at ssa,gov to confirm my eligibility to participate in Medicare. If you haven’t established a log in, you can create one or call 1-800-772-1213 (avoid Mondays - long hold times typically but early morning or late afternoon are better - allow plenty of time). Since I’m not yet taking a Social Security benefit there’s an Apply for Medicare Only tab that brought me directly to the Start a New Application tab. There are sections to enter your personal info, birth and citizenship information and other pertinent details that take 10 minutes to complete. I learned that once I submitted my application, Social Security would contact me if further clarification was needed. If not, I could expect to receive my Medicare card by mail within 3-4 weeks. Sure enough, it arrived in 3 weeks.

With my Medicare card in hand, the next step was to establish a log in at www.medicare.gov to sign up for my Part A (hospital insurance) and Part B (medical insurance) options here. The website provides a vast amount of information to educate yourself. At this point, if you are a DIYer, you can compare the various Medigap options yourself and proceed. If you are like me, you can work with a Medicare broker licensed by your state to complete your enrollment. Their services are free to you; agents are paid by the carriers they are licensed to represent. Don helped me narrow down my options, costs, services covered and ran a screen of my medications so I would know where to get my prescriptions filled at the lowest possible cost. I was surprised to learn that out-of-pocket costs at Walgreens were considerably higher than at CVS or the Fry’s pharmacy where I usually get them filled. That may not be the case for you so please do your homework.

When all was said and done, I promptly received welcome letters and emails from the plans I selected. Within 2-3 weeks the Plan G supplement and prescription cards arrived, which are now on file with my pharmacy.

Medicare, here I come.

If you are able, please plan to attend our upcoming Medicare Lunch N Learn events in AZ (Oct 13) and UT (Oct 19). Call the office for more information.

Thursday, October 13th – 12 PM – 1:30 PM
Maggiano’s Little Italy - 16405 N Scottsdale Rd (Promenade), Scottsdale, AZ 85254

Wednesday, October 19th – 12 PM - 1:30 PM   
The Velvet Room, Water Tower Plaza at Thanksgiving Point - 3003 N Thanksgiving Way, Lehi, UT  84043

Medicare Eligibility

• You’re eligible for Original Medicare (Parts A and B) if:

  • You’re at least 65 years old, or you’re under 65 and qualify on the basis of a disability or other special circumstances

                And

• You’re a U.S. citizen or a legal resident who has lived in the U.S. for at least 5 consecutive years

Currently Receiving Social Security Benefits?

If you are receiving Social Security benefits prior to age 65, your Medicare card will automatically arrive in the mail approximately 90 days before your 65th birthday.  This will get you set up for Part A (hospital coverage) and Part B (medical coverage) but you will still need to sign up for an optional Supplement/Medigap or Advantage plan and a prescription drug program independently.

Parts of Medicare

Part A  - hospital coverage by the government

Part B   - medical coverage by the government

Part C  - Medicare Advantage Plans – coverage (details here) offered by Medicare-approved private companies.  These plans bundle Part A and Part B with or without prescription drug coverage (Part D) and other optional services such as a gym membership, dental and vision, hearing, to name a few.  You will most likely need to use health-care providers who participate in the plan network (ie, HMO, PPO).

Medicare Supplement Plans (Medigap) – there are several lettered plans that vary by state and benefits.  These plans supplement your original Medicare benefits (Part A & B) and are offered by Medicare-approved private companies.   You can go to any hospital or provider who accepts Medicare.   Details found here.

Part D - Prescription drug plan - coverage from a private company

If you have questions, please contact us.

MARKET UDPATE
FRAUD ALERT
TAX PLANNING
401(K) ALLOCATION

To download the October 2022 Newsletter: CLICK HERE