We are getting closer to the annual open enrollment which always brings out the best in health insurance radio and tv commercials, if you are anything like me I love the commercials almost as much as I love my shows. When I watch these commercials or hear them on the radio I am amazed at the number of times they use multiple terms for the same "feature" of Medicare or health insurance. I said on my weekly radio show today that, "Before you jump into the murky waters of Medicare or health insurance give us a call, we will act as your insurance life guards."
As an introduction to the "waters" of insurance here are a few terms that you may get confused about. Original Medicare is also know as Medicare Part A and B, Part A covers hospitalization and Part B covers doctors visits. Medigap Insurance is always referred to as Medicare Supplement Insurance, these plans covers most of the areas that Medicare does not cover. Where there is a "Gap" in Medicare we try and fill it with a supplement plan (get it?). Medicare Advantage Plan is also called Medicare Part C which also helps cover the areas that Part A and B don't cover, even in our short little paragraph here we have words that are overlapping.
Since we are on the idea of communication, PLEASE!! stay in contact with your financial advisor and your tax person as you get closer to starting Medicare. Doing this helps in a couple of different ways but the most important thing to remember is that if you make too much money Medicare will charge you more for your insurance. An individual can not make more than $85,000 per year with out paying a penalty. A couple must not make more than $170,000 in a year which seems easy to do but this also includes removing money from taxable investments, 401K, etc. Once you start piling up a couple of withdraws that numbers doesn't seem so crazy high and if you go over that mark you will pay more for Medicare for making too much money.
If you have any questions or if you would like learn more about Medicare call us at 605-692-4722 or check us out online at www.insurance4sd.com.