As comprehensive wealth managers, we seek to provide advice for all of our clients’ needs. We acknowledge we cannot be knowledgeable in every area, which is why we partner with outside professionals to ensure that our clients have access to the best services on the market today. In the case of retiree health care, we work with two primary outside providers, Associates of Clifton Park and HPOne. Whether you are in the pre-enrollment phase or have received Medicare for years, below you will find links to helpful educational material from both providers:
“Medicare Used to be Quite Simple” - Shining a light on how Medicare has evolved, here is an overview of how it works today.
“10 things to know about your new Medicare card” - Be prepared when you receive your new Medicare card this month.
Getting ready to enroll?
We have also outlined additional considerations while weighing your options for Medicare enrollment:
- Determining and Plan - Work with our outside providers to determine a plan that best first your needs, such as an original Medicare with an appropriate supplement, or a Medicare Advantage plan.
- Late enrollment – if you do not enroll in Medicare during your initial enrollment period, for every 12 months that you enroll late you will pay a lifetime 10% penalty on your Part B premium. For example, if you enroll two years late, your Part B premium will be 20% higher for the remainder of your life. Once your employment has ended, you will have 8 months to sign up for Part B without penalty.
- Eligibility - You are eligible for Medicare, but you are still working and covered by your employer’s health insurance:
- Over 20 Employees on plan – You likely will be able to delay enrollment in Parts A, B, C and D without incurring penalties on your Part B premium (exceptions apply if you have COBRA coverage).
- Under 20 Employees on plan – You likely will NOT be able to delay enrollment without penalty.
- Health Savings Accounts (HSAs):
- Once enrolled in Medicare you can no longer make tax deductible contributions to an HSA. This is because tax deductible contributions to an HSA are only allowed if you have a High Deductible Health Plan (HDHP).
- You may, however, continue to make tax-free withdrawals from your HSA to pay for medical expenses such as deductibles, premiums, copayments, and coinsurances and other qualified medical expenses.
- You may take penalty-free withdrawals from your HSA after age 65, regardless of whether or not the money is used for qualified medical expenses. The distribution will be subject to income taxes.
Need help with your new or existing policy?
If you’re interested in enrolling in Medicare, please reach out to your Financial Consultant to discuss your options and to connect with one of our outside providers. For the clients already enrolled in Medicare, you will be receiving new Medicare cards this year and it’s a good time to review your existing policy to confirm it is still competitive.
The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Any opinions are those of M.J. Smith & Associates and not necessarily those of Raymond James. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investments mentioned may not be suitable for all investors. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. These policies have exclusions and/or limitations. The cost and availability of Long Term Care insurance depend on factors such as age, health, and the type and amount of insurance purchased. As with most financial decisions, there are expenses associated with the purchase of Long Term Care insurance. Guarantees are based on the claims paying ability of the insurance company. Surrender charges may apply for early withdrawals and, if made prior to age 59 ½, may be subject to a 10% federal tax penalty in addition to any gains being taxed as ordinary income. Please consult with a licensed financial professional when considering your insurance options. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.