This week we would like to highlight our Medicare resource partner, Paul Davis. Paul has been in the health insurance industry for more than 33 years, specializing in Medicare and Medicare Advantage plans.
If you have a question about Medicare or would like to find the best Medicare and Medicare Supplement plan options, I encourage you to get in touch with Paul. Here are several ways to contact him:
Website – http://www.pdinsure.com
Email – paul@pdinsure.com
Telephone – 818.888.0880
Our article this week comes from Paul, 10 Medicare Mistakes. This week we’ll present part 1 and next week part 2.
Reaching age 65 is a turning point for Americans who qualify for Medicare. Medicare offers seniors more varied and cost-effective health care options than can be had prior to 65. But, Medicare can be very confusing and many people make poor decisions that can lead to costly mistakes. Here are some of the mistakes that you need to avoid:
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Signing up for part B at 65 and paying premiums when your employer group plan doesn’t require it. (Paying $134/mo. that you don’t need to pay). This applies to groups of more than 20.
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Opting out of group health coverage just because you’re 65. For some people the group plan remains the most cost-effective choice. Premiums may be subsidized and deductions may be pre-tax. Prescription drug benefit may be superior to Part D.
The cost of Part B is a function of your Modified Adjusted Gross Income. This cost can be as high as $503 a month and is generally not tax deductible. You don’t need to pay this if you’re on a group plan with more than 20 employees.
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Staying on a group plan past age 65 when there is significant share of cost for that plan. You may be able to save money by enrolling in Medicare and transitioning to a Medicare supplement or Medicare advantage plan and opting out of the group plan. (yes this is the opposite of #2 because different people are in different situations).
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Not signing up for Medicare parts A and B when initially eligible. Unless you have coverage through an employer group plan this may force you to wait for an enrollment period and incur a penalty of 10% per year delayed.
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Signing up for Parts A and B only. Medicare parts A and B provide a lot in the way of coverage. But, without additional coverage you will be faced with deductibles and share of cost. Failure to sign up on a part D plan can saddle you with full cost of prescriptions and a penalty for Part D when you eventually do enroll.
By Paul Davis (CA license # 0669770)
If you have any questions about Medicare please feel free to contact me.
