Posted by Allen Heffler on 5/12/2015
Allen Heffler, Medicare insurance broker and advisor in Willow Grove- As part of the “doc fix” legislation that Congress passed and President Obama is expected to sign, some higher income Medicare beneficiaries could see their monthly Medicare Part B premium increase as much as 30%. The bill increases Medicare reimbursements and payments to doctors and will be financed with higher Medicare Part B premiums, starting in 2018, if this passes through Washington. Medicare Part B covers such medical items as doctor visits and outpatient testing. The premium that must be paid is based on the Modified Adjusted Gross Income. The standard monthly premium is $104.90. For those Medicare beneficiaries who have higher incomes, the Part B premium is higher. This new potential change does not affect those with lower to moderate income.
Allen Heffler is a Medicare broker located in Willow Grove, PA. If you have any questions feel free to contact him at (215) 658-1776
Allen Heffler Willow Grove- Don’t Make this Medicare Mistake
Posted by Allen Heffler on 01/30/2015
Don’t Make this Medicare Mistake
You would think that enrolling in Medicare would be pretty easy. After all, thousands of Americans do it daily. But, the devil is in the details; there is much that can go wrong. Most Americans are entitled to it when they turn 65. A common and costly mistake sometimes occurs when people work beyond age 65, delay retirement, and delay signing up for Medicare. People think that they have several months to sign up for Medicare, without incurring a penalty, after leaving their job. Some think that continuing employer insurance through COBRA provides them a time cushion to review their options.
This is a mistake! Medicare regulations say that once a person age 65 or older ceases “current” employment, any other type of insurance, including COBRA, kicks in only after Medicare pays its share. Medicare’s consumer handbook does warn that COBRA coverage isn’t “considered coverage based on current employment,” but it doesn’t explain why that’s important. If there’s no Medicare coverage, the insurer is under no obligation to pay Medicare’s portion—even during that eight-month grace period. Furthermore, by delaying Medicare Part B beyond “current employment” status, they could lose their Special Enrollment Period (SEP). This SEP would allow them to get into Medicare Part B and a Medicare Insurance plan, guaranteed and immediately. Without this SEP, the individual might have to wait for the general enrollment period in the beginning of the year, with a start date of July 1.
All of this sounds pretty confusing, but it is vital not to make a mistake. Any questions- we are here to help! Allen Heffler Willow Grove Medicare broker, call (215) 658-1776
Allen Heffler- The best time to start taking Social Security
Posted by Allen Heffler on 01/15/2015
Allen Heffler Medicare Insurance Willow Grove
This is a nice article by Marketwatch’s Cliff Goldstein concerning when someone should start taking Social Security.
Should you start taking Social Security as early as possible or hold out for bigger payments later?If you’re nearing retirement, you’ll likely be faced with a decision: Should you start taking Social Security at the earliest age possible, 62, wait until you reach your full retirement age (65 to 67, depending on the year you were born), or hold out until age 70 to get the most benefits?
There is really no one-size-fits-all answer to this question. Determining the best age to take Social Security ultimately depends on your income needs, life expectancy, and your ability and desire to continuing working. It also hinges on your overall health, the amount you have accumulated in retirement savings and your family’s financial picture.
Social Security: When delaying makes sense
The earliest age you can start receiving Social Security benefits is 62, but it’s generally a good idea to wait until at least your full retirement age or until 70, if you’re able to. Benefits are reduced if you take Social Security before your full retirement age, so the longer you wait, the greater your benefits.
For example, if your full retirement age is 66 and two months, but you start getting benefits at 62, you’ll get only 74.2% of the monthly benefit since you’re getting benefits for an additional 50 months. But if you start at your full retirement age, you’ll get 100% of the monthly benefit, according to Social Security.
Waiting until age 70 yields even greater benefits, as it means a 76% increase in benefits from what you would have received had you filed at 62.
For example, if you were born on Jan. 1, 1950, earn $40,000 this year and plan on retiring in January 2020 at the age of 70, you’ll receive $1,702 in monthly benefits, according to the Social Security Quick Calculator. But if you elect to receive benefits five years earlier in January 2015, your monthly benefit will be $1,129, or $573 less, according to the calculator.
“Generally speaking, for every year you delay taking Social Security, it increases your benefit by around 8%,” says Allan Moskowitz , a financial planner with Progressive Wealth Management. “It is generally best to wait until you are 70 if you are in good health, have other sources of income and don’t need it.”
You should still file and suspend benefits as soon as you’re eligible, even if you don’t think you’ll need it, Moskowitz says. “That way, if something happens to you and you do need it before reaching age 70, then you can collect part of it retroactively,” he explains.
“Unless you have good reason to believe you have a shorter than average life expectancy, and assuming you have other income sources to tap into, delaying your S.S. is prudent and maximizes its value as longevity insurance, given that this income is guaranteed for life and cannot be outlived,” says Joseph Alfonso, a financial planner with Aegis Financial Advisory LLC.
Also, collecting benefits while earning income from work can increase your marginal income tax bracket, says Mark Smith, president of Vision Wealth Planning, LLC. “Delaying the benefit until there are no earnings from work can therefore provide a tax benefit,” he notes.
When delaying doesn’t make sense
However, waiting until age 70 to receive Social Security is just not an option for some, due to smaller retirement savings, an inability to work past age 62, high health care costs or an overall higher cost of living. A lower life expectancy, in some cases, and your spouse’s income level can also play a role in your decision.
When it comes to couples, it may be appropriate for the higher earner to delay his or her benefit to age 70 if possible, given that this will ensure a maximized survivor benefit since the benefit is based on your total earnings, Alfonso says.
“Given the high likelihood that at least one spouse will live well into their 80s, delaying makes sense for couples even if the higher earner has a shortened life expectancy,” he says.
It can also make sense for divorced or surviving spouses to delay their own benefit until age 70, since they can claim either a divorced spouse benefit or a surviving spouse benefit now, while their own benefit continues to grow to age 70, Alfonso says.
The bottom line is the decision on when to take Social Security depends on numerous personal factors.
If you need the money sooner to cover health-care costs and living expenses, and you have a small retirement nest egg and a lower life expectancy, taking Social Security earlier makes sense.
But if you are healthy, can work longer and have other sources of retirement income, delaying Social Security until age 70 is the better choice since your benefits will be greater.
Allen Heffler- Help with Medicare Prescriptions (Pt 1)
Posted by Allen Heffler on 01/12/2015
Allen Heffler Medicare Insurance Broker Willow Grove, PA
If you are on Medicare Insurance and also have Medicare Part D for your prescriptions, you may be eligible for assistance for your prescription drugs. In this blog, I will review the help you could receive on a state level; my next blog will review assistance on a federal level.
If you are a Pennsylvania resident, you may be eligible for PACE or PACEnet. These programs are PA’s prescription assistance programs for older adults, offering low-cost prescription medication to qualified residents who are age 65 and older. To be eligible for PACE or PACEnet, you must be a PA resident for over 90 days, age 65 or older, and not be enrolled in Medicaid. PACE and PACENET eligibility is determined by your previous calendar year’s income. Medicare Part B Premiums are now excluded from income. This is a positive change, since it has the same effect as raising the income limits for eligibility. PACE
· For a single person, total income must be $14,500 or less
· For a married couple, combined total income must be $17,700 or less
If you are eligible for PACE, copays for Brand Name will be $9 and Generic copays $6
Furthermore, you could also get a reduction for the cost/premium of Part D plan.
PACENET
· PACENET income limits are slightly higher than those for PACE
· For a single person, total income can be between $14,500 and $23,500
· For a married couple, combined total income can be between $17,700 and $31,500
If you are eligible for PACEnet, copays for Brand Name will be $15 and Generic copays $9
For more information concerning the PACE program, you can go onto their website PACE
If you think you are eligible for PACE or PACEnet, you should take advantage of the program! Need help or have questions? Just call Allen Heffler at (215) 658-1776.
