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Frequently Asked Questions

MEDICARE FAQ

Frequently Asked Questions about

Medicare

  • Medicare Part A helps you pay for hospital stays and inpatient care.  The Part A deductible is $1,632 per inpatient stay in 2024.  Do you want to pay that much out of your own pocket?
  • Medicare Part B helps you pay for doctor visits and outpatient care.  The Part B deductible is $240 in 2024 and then you are responsible for 20% with no maximum.
  • Retail prescription drugs are not covered by Part A and B, for the most part.  So that’s all coming out of your pocket… unless you have Part D.
  • Since Original Medicare (Part A and Part B) only pays for about 80% of inpatient and outpatient costs and nothing for retail prescriptions, I recommend you buy a Medicare Supplement plan with a Prescription Drug plan or a Medicare Advantage with the Prescription Drug Plan baked in.

Medicare Part D is a stand-alone Prescription Drug Plan (PDP) that is administered by various insurance companies that have a contract with the federal government.  Plan designs have to follow CMS-approved guidelines, but can vary by prescriptions covered, deductible amount, and copayments for each tier or level.  Staying inside the pharmacy network and choosing a “preferred” pharmacy can save you money.  Premiums, plan design, copayments / coinsurance can all change each calendar year.

It’s important to review your PDP coverage each year to make sure your current plan will meet your needs starting each January.

Medicare Part C is also known as Medicare Advantage, and is made up of Part A, Part B, and can include Part D as well as additional coverage.  I call Medicare Advantage plans the option that lets you “pay as you go” since each plan has specific copays that members pay when they use the plan for specific services.  Most Medicare Advantage plans have a network list of participating providers, so work with Right Fit Insurance to ensure your doctors are In Network.  Plans are based on where you live, and plan designs can change each January. Therefore, it’s a good idea to review your Medicare Advantage plan each year during Annual Election Period (AEP is October 15th to December 7) to determine the new year’s plan benefits, that your physicians are In Network, and how your current prescriptions will be covered each January.

Yes.  Medicare Supplement insurance (aka Medigap) plans help pay for some of Original Medicare’s out of pocket costs.  They have a monthly premium in addition to the Medicare Part B premium, and generally do not cover prescriptions that you get at the pharmacy counter.  I call Medicare Supplement plans the option that lets you “pay ahead,” since you have a monthly premium and very few out of pocket costs when you have Medicare-covered treatment.  It’s important to pair a Medicare Supplement plan with a Prescription Drug Plan and realize that Medicare Supplement premiums will rise an average of 10% per year.

You also might want to buy additional coverage for Dental, Vision, and Hearing since these benefits are not generally covered by Original Medicare nor the Medicare Supplement plan.

Yes, you can have VA and Medicare at the same time.  Your VA benefits are covered by the Veterans Administration and your Medicare benefits are covered by CMS/Medicare.  The type of VA benefits a veteran is awarded is based on years of service, any service-related injury, and his/her service connection.  Some veterans like to have all their care at the VA and others like having some or all of their care outside of the VA.  I can help you choose the right Medicare plan based on your situation.
Most retirement plans require their retirees to have both Medicare Part A and Part B.  You can check with your plan administrator to find the exact requirements.  It’s a good idea to compare benefits in your retiree plan and what’s available on the open market every couple of years, to make sure you’re in the best position each year.
Sometimes a new plan is simply not a good fit.  Thankfully, Centers for Medicare and Medicaid Services (CMS) / Medicare allows you to make changes under certain circumstances.  If you have a Medicare Advantage plan that started January 1st, you can make a change to a new Medicare Advantage plan from January 1st through March 31st, or you can return to Original Medicare with or without a Medicare Supplement and with or without a Prescription Drug Plan.  If you’re brand new to Medicare, you also have the ability to make changes, but contact me so we can go over the details of your situation.
10/15 to 12/7 of each year.  A person with Medicare Part A and/or Part B can elect or switch their Prescription Drug Plan.  A person with both Medicare Part A and Part B can elect or switch their Medicare Advantage Plan.  Applications during AEP are effective January 1st.

If you have a Kentucky Medicare Supplement, you can switch to a new Medicare Supplement company within 60 days of your birthday each year without health questions.  You must keep the same Medicare Supplement “letter,” so contact me for more information.

Apply for Medicare under age 65 by contacting Social Security.  Certain work rules apply.

Contact me as soon as possible.  You have 60 days from the change to elect new Medicare Advantage coverage.

You have 8 months from loss of coverage to elect a Medicare Supplement with a Prescription Drug Plan or a Medicare Advantage Plan.  If you previously did not have Medicare Part B or Part D, Social Security might require additional forms from your employer. 

You have 60 days to move your Prescription Drug Plan or Medicare Advantage Plan to a plan that is covered in your new service area.

You have the 3 months before Medicare starts and the 3 months after Medicare starts to elect a Medicare Supplement with a Prescription Drug Plan, just a Prescription Drug Plan, or a Medicare Advantage Plan.

1/1 to 3/31 of each year. A person with a Medicare Advantage Plan can change carriers, change plans within the same carrier, or drop their Medicare Advantage plan and return to Original Medicare (Part A and Part B) with or without a Prescription Drug Plan.

Typically you can apply for Medicare 3 months before your turn 65, the month of your special birthday, and 3 months after you turn 65.  If you wait until your birth month or later, your Medicare effective date will be delayed.  Therefore I recommend that you apply for Medicare 3 months before your special birthday.  Your new coverage will begin the 1st of the month you turn 65, unless your birthday is 1st of the month.  Contact Social Security or go to SSA.gov.

NOTE: Information taken from www.medicare.gov/basics/get-started-with-medicare/get-more-coverage/joining-a-plan.
Don’t do Medicare alone.  Please contact me if you’ve experienced life changes.  I’m happy to guide you into the right path based on your situation.
LIFE FAQ

Frequently Asked Questions about

Life

Great question!  I personally believe we are here on this Earth to love God, others, and ourselves.  I get to do what I love and show love to others by walking people through their health, life, and savings options.  Keep searching until you find your purpose; the journey is worth it!
Excellent for thinking ahead, but did you realize you generally prepay the expenses that the funeral home can control?   They can’t control the costs of caskets, headstones, or cemetery plots.   Please don’t leave your loved ones with a large bill to bury you with dignity.   Consider purchasing a small final expense plan.
Ever heard the term, “downsizing?”   Having a job with benefits is no longer guaranteed.   Your Life insurance through work can end or become very costly when you leave your current job.  Lock in your age and current health now, so you don’t get stuck being “uninsurable” later.   Consider your time of life (Young kids at home?   New home?   Children gone?   Raising grandkids?), and then review your options to see if Whole Life or Term Life is the best fit for you.
Children under age 18 are not allowed to receive Life insurance proceeds.   It’s better to name an adult as beneficiary.   Some people choose to work with an attorney to create a Trust and appoint an executor who administers the Trust; the Trust is then named the beneficiary.

Yes, it’s okay to name more than one person as your beneficiary, but make sure you specify what percentage you want each person to receive.

The contingent beneficiary receives the Life insurance money if the primary beneficiary is not living when the person with Life insurance dies.
You should review and update your Life insurance beneficiary any time you have a major life change, like marriage or divorce.   I also recommend reviewing your Life insurance when a family member passes, when children become adults, with a job change, or upon retirement.
ANNUITY FAQ

Frequently Asked Questions about

Annuities

Do you like the idea of protecting your hard-earned nest egg from down markets?  If you don’t have 10 years to recover from a down market, annuities are a good option to grow your savings risk free.  Annuities have several ways to grow: a fixed interest rate (the most conservative), a fixed index (which points to certain aspects of the stock market without risking your money), and variable annuities (which have the chance for the highest gain but also risk your account value).  I do not offer variable annuities.
These days annuities allow you to withdraw 10% per year penalty free, subject to income tax.  A person under age 59 ½ might also have an early withdrawal penalty if the annuity was funded with pre-tax money.  Yes, annuities have timeframes or terms, so work closely with an expert to meet your retirement goals.
These days many annuities have a death benefit which goes to the named beneficiary.  Keep in mind that annuities are not the same as Life insurance, so beneficiaries must follow rules to withdraw the money over a certain period of time, such as 5 years.

If pre-tax dollars (like a 401k) were used to fund the annuity, then 100% of your withdrawals are taxable.  If post-tax dollars were used to fund the annuity, then the earnings or gains in the account value are taxable.  Using techniques such as income riders, laddering, and slowly rolling pre-tax to post-tax money can lower the amount you pay in taxes.

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