Seniors, can we talk?
As soon as Ruth and her friend, Jo, walked in my office, Jo was full of questions. She had read last month’s column about enrolling in Medicare Part A and Part B and had questions that could not wait until this column. Jo was concerned about paying a Part B late enrollment penalty. She had read that if she did not sign up for Part B when she was first eligible (at age 65 in her case) she would have to pay a late enrollment penalty for as long as she has Part B. Jo said she is 70 years old, still working and has health insurance through her employer’s group plan. She has a Medicare red white and blue card showing Part A but she does not have Part B. All of her friends have Part A and Part B. Since Jo is working and covered under her employer’s group health plan, she has a special enrollment period to enroll in Part B. She should not have to pay a late penalty. Jo was so relieved and asked about husband. Does this same special enrollment period apply to him, since he’s covered on her group health insurance plan, too? Yes, it does. When do she and her husband have to enroll? This special enrollment period is an 8 month timeframe that starts the month after her employment ends or the group health insurance based on her employment ends, whichever is first. Then Jo asked “How much does Part B cost?” Most people pay the standard premium. If you enroll in 2016 this $121.80 monthly. But . . . . The Part B premium is based on your tax return and may be more (actually it’s based on your modified adjusted gross income from 2 years ago). There are income ranges based on filing individual or joint tax returns or married and filing separate. If you do have to pay an “income related monthly adjustment amount, you will be sent a letter. “How do we pay this?” Jo said she and her husband are receiving Social Security. This $121.80 will automatically be deducted from each of their checks. (If they were not getting Social Security, they would get a quarterly bill.) Jo confided that she and her husband have never had a relationship with an insurance agent. They simply told their agent what they wanted. They are now seeing the importance of having a relationship with an agent – someone they can really call “their agent” and talk with. What’s next? We talked about Medicare Supplement and Prescription plans. Jo asked “What do people mean when they talk about the Annual Enrollment period.” This is the enrollment period for Medicare beneficiaries from October 15 through December 7 every year when you can review your Medicare prescription plan and make any changes. It’s almost that time! What are your questions? Concerns? Call me at 501-868-6650 and say “Caroline, can we talk?”
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AuthorCaroline Beauchamp specializes in personalized life and health insurance solutions. Archives
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