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Allen Heffler – Most seniors can’t pony up more for health care

15 July 2014
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Posted by Allen Heffler on 07/15/2014

Most seniors can’t pony up more for health care

A new Kaiser Family Foundation tool shows the harsh reality of trying to shift more Medicare costs to already-strapped seniors.

By MSN Money Partner Mon 1:40 PM
This post comes from Krystal Steinmetz at partner site Money Talks News. If you think seniors can afford to pay more for Medicare, let’s take another look at that thought. Why is this important? House Republicans have been calling for an end to traditional Medicare, instead favoring a voucher program where seniors pay for private plans. The latest proposal would give seniors a choice of using a government subsidy to either buy private insurance or pay for Medicare premiums in 2024. Many believe a subsidy program would shift more health care costs to seniors over time. Also, if new retirees picked private insurance, traditional Medicare would become much more expensive for those who continued to use it because they’d likely be older and in poorer health. “The Congressional Budget Office has estimated that this effect could boost traditional Medicare premiums 50 percent by 2020 compared with current projections,” Reuters said. Seniors covered by Medicare are already paying for a chunk of their health care costs. According to the Employee Benefit Research Institute (.pdf file), Medicare covered about 62 percent of health care costs for seniors in 2010. Private insurance covered 13 percent and seniors paid 12 percent of costs. Out-of-pocket health care costs totaled about $4,760 in 2011 for a 65-year-old in poor health and $4,450 for a 65-year-old in good health, according to U.S. News & World Report. By age 75, those numbers increased to $5,635 for someone in poor health and $5,220 for a senior in good health. Reuters said:
HealthView Services, which develops software for gauging health care costs, recently estimated that a senior retiring this year in high-cost Massachusetts would pay $7,020 in Medicare premiums alone – a number that will jump to $11,536 in 2024. And that figure doesn’t include co-pays and out-of-pocket costs for things Medicare doesn’t cover, such as dental care. It also doesn’t include costs for a catastrophic event.
So, can seniors afford to pay more? Check out a new interactive Medicare recipient income and assets tool from the Kaiser Family Foundation to find your answer. Reuters did. Among the results:
  • Fifty-three percent of Medicare recipients had $25,000 or less in annual income in 2013. Just 4 percent had income of more than $100,000. And nearly 27 percent had income below $15,000.
  • Half of seniors had savings accounts with less than $61,400 and home equity below $67,700 on a per-person basis.
  • “Median 2013 per capita income for white Medicare beneficiaries was $26,400, compared with $16,350 for African Americans and $13,000 for Hispanics,” Reuters said. While men’s median income was $25,880, women’s income was $21,800.
Kaiser told Reuters that just 5 percent of Medicare recipients will have income of more than $111,900 in 2030, while half will have less than $28,250 to live on.”
“There will always be a small share of the Medicare population with sufficient wealth and resources to absorb higher costs, but most will not be in that position,” (KFF executive Tricia Neuman) says. “The assumption that boomers are healthier and wealthier and that we’ll have a much rosier Medicare outlook down the road just isn’t going to happen.”
Do you support attempting to shift Medicare’s growing costs to seniors?

Some Myths of Medicare

8 July 2014
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Posted by Allen Heffler 07/08/2014
Allen Heffler re-posted this article by Toni King, Houston Newspapers: Recently, I read an article online about the myths of Medicare from E-Health Insurance. I am a 65 year old engineer who retired from BP about 3 years ago. I am now working on a contract basis on various oil related projects Can you elaborate on the Medicare myths? I have recently been diagnosed as having Parkinson’s and want to be sure I make the correct choice. I do not understand why I need to enroll in Medicare, since I have excellent company retirement health insurance. Looking forward to what you have to say … John from the Memorial area Hello John: Below is my response to the myths in the E-Health Insurance article: Myth #1: A person can enroll in Medicare any time after they’re 65 without penalty … FALSE! This idea is absolutely wrong. If you are not working fulltime for a company with true group benefits and wait later than 65 years old and 90 days to enroll in Part B, then you can receive a penalty of 10 percent for each 12 month period or year that you did not enroll in Part B. That penalty lasts for the rest of your life. **John since you are not working full time for the company you have retirement benefits with I would advise you to enroll in both Medicare Parts A and B to keep from receiving the late enrollment Part B penalty. Toni Says: If you or your spouse are not working fulltime with true company benefits be sure to enroll in Parts A and B by the time you turn 65. Wait 90 days past turning 65 and you will get a penalty! Myth #2: Medicare is free … FALSE! The Medicare payroll tax that you have been paying for years is for Part A only! Part B has a premium which is means tested due to income. Most on Medicare are paying $104.90 each month for Part B, but there are 10 percent that meets the means tested income amount and has to pay more than $104.90 each month. If you do not pay the Part B premium, then you will not have any of the Part B benefits. Toni Says: Nothing is free! You worked and paid taxes into the Social Security system. Myth #3: Most baby boomers think Medicare is just like regular health insurance plans … FALSE! Medicare is totally different than traditional group or individual health insurance. Medicare has two Parts A & B. Part A has a $1,216 deductible 6 times a year for an inpatient hospital stay. Medicare Part B includes doctor’s services such as office visits and doctor performing surgery, outpatient services and surgery, scans, x-rays, chemotherapy and radiation, wheel chairs, walkers and the list goes on. There is a deductible for Medicare Part B of $147 once a year with Medicare picking up 80 percent and you pay 20 percent of the Medicare approved amount with no co-insurance or stopping. Not like the typical 80/20 to $5,000 with a stop lost. The 20 percent just keeps on going! Toni Says: Medicare is completely different than health insurance. The out of pocket can be huge. Learn about the different Medicare plan options to pick up your out of pocket costs. Myth #4: Medicare covers everything … FALSE! Most baby boomers are surprised to find out that Medicare does not cover long term care, routine dental care, dentures, cosmetic surgery, exams for hearing or hear aids and acupuncture. Medicare only covers what is medically necessary. Toni Says: Medicare will only pay for medical expenses and if Medicare doesn’t pay, then your Medicare supplement or Medicare Advantage plan will not pay eith

1 comment:

                                             allen heffler                                      posted at 7:01 am on Tue, Jul 8, 2014.            
  • allen hefflerPosts: 2
    Allen Heffler posts: This is a great article. Myth # 1 is an important one. Most seniors are not aware that there are hard and fast enrollment periods or deadlines when people can enroll, change, disenroll. Toni, keep up the god work! Allen Heffler

Medicare Supplement Plan – Fills in the Gaps of Original Medicare

19 June 2014
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Posted by Allen Heffler 06/19/2014 http://ezinearticles.com/?Medicare-Supplement-Plan—Fills-in-the-Gaps-of-Original-Medicare&id=6224778  

Medicare Supplement Plan – Fills in the Gaps of Original Medicare

By   |   First Submitted On April 29, 2011
You are turning 65. Learning the ins and outs of Medicare is confusing. Figuring out all of the options such as Medicare Advantage and Medical Supplements are even more confusing. You know Part A covers Hospitals and part B covers Medical. But you are not sure whether or not you need any other coverage in addition to Original Medicare. Why do many people purchase a Medicare Supplemental Plan and what does it cover? To answer that question, you must first understand how Medicare Parts A & B work, and what is and is not covered. Medicare Part A covers most hospital expenses-but not all of those expenses. In 2011, there is a deductible of $1,132 per visit (as long as each visit is separated by more than 60 days). If you are in the hospital for 61-90 days, you’ll have a per day co-pay of $283. If you are in the hospital for 91-150 days, you’ll have a per day co-pay of $566. Concerning Medicare Part B, there is an annual deductible of $162 (in 2011) that you are responsible for. In addition to that, you’ll be responsible for 20% of all medical expenses. This 20% can really, really add up. In addition to your regular doctor visits and tests, imagine if you would need a knee or hip replacement. That would require months and months of physical therapy-you would be obligated to pay 20% of all those bills. While Original Medicare covers most medical needs, it was never meant to cover all of your medical costs. As you can clearly see, there are a lot of “gaps” in coverage, that you are responsible to pay. For this reason, many people will purchase a Medigap or Medicare Supplement Insurance. These two phrases-Medigap and Medicare Supplement are interchangeable-two names describing the same exact insurance. Most Medicare Supplemental Plans will pick up your Hospital deductible and co-pays, as well as your Part B deductible and the 20%. For most people, it is being exposed to the 20% of medical bills that is the scary part. A battery of test could cost a small fortune. If you need physical therapy or rehabilitation, those twice a week visits, at 20% cost to you, really adds up. Add the potential Part A hospital deductible of $1,132-per visit, and you are looking at quite a medical bill. For this reason, most people want to fill in these gaps in coverage, With a Medicare Supplemental plan, you are adding an extra monthly expense. However, the trade-off is that you will have a known expense, as opposed to a potentially very high expense if you utilize benefits. If you have a Medigap plan in addition to your red, white, and blue Medicare card, this Original Medicare is your primary coverage. They pay your medical bills first. Then, your Medicare Supplement Insurance will pay the gaps (the deductibles/co-pays/co-insurance) that Medicare doesn’t pay for. And voila! If you have Original Medicare and a good Medicare Supplemental Plan, you now have complete, comprehensive coverage with little or no out of pocket expenses.
Allen Heffler, CLU, ChFC has been providing seniors with information on Medicare Supplemental Insurance since 1985. Visit his website https://www.mymedicareadvisor.com for more information or call (215) 658-1555.
Article Source: http://EzineArticles.com/?expert=Allen_Heffler