Episode 035:
De-Mystifying Medicare - Part I

Life is a Circus! About the Bretl family’s fantastic big-top encounter with The Triton Troupers. Sweet clowns. Clowns on stilts. Old and young clowns. No creepy clowns!

Getting Right Down to It: Breaking down and demystifying Medicare.

Buckle Up for the Nuance: An overview of Medicare planning – one of the five key components of (and a big expense to be factored into) retirement planning.

Turning 65: Almost everyone will be impacted in one way, shape or form by choices related to the rules and decision-making around Medicare.

Be Reassured: Even though it’s a massive government-run program, Medicare is a very comprehensive and solid health insurance benefit.

The vast majority of doctors and hospitals accept Medicare, but it’s true that some do not (because they don’t want to accept the program’s rules).

Basics to Know:

• Everyone becomes eligible at age 65.
• There are four parts to Medicare (A, B, C and D but C differs slightly).
• Parts A, B and D are all federally managed. (Part D differs slightly and will be a topic of conversation in Part II next week.)

How Medicare’s Various Parts Work:

• A: Hospital coverage – is free and a baseline benefit for all.
• B: Covers doctors and nurses – requires enrollment and costs money each month, regardless your situation.
• D: Covers prescription drugs – is an option that people opt for depending on their circumstances. If you don’t enroll in a timely manner there can be penalties.
• C: “Medicare Advantage” programs run by private insurers. If you take “C” you no longer receive Parts A and B.

Word to the Wise: Medicare can be costly so it’s important to look at true out-of-pock expenses (premiums, deductibles, co-insurance) and understand how the amounts are impacted by income.

Embracing IRMAA: Income-Related Monthly Adjustment Amount plays a role in the threshold at which retirees pay for their Medicare insurance.

About the Limits: Co-payments and other fees arise because Medicare doesn’t provide blanket coverage, which is why a lot of people choose to purchase supplemental Medi-gap policies, which are sold by private insurance companies.

Word to the Wise: The first decision you make about which private policy to buy is important because insurers can’t impose any pre-existing condition restrictions. If you switch providers later, that same protection doesn’t apply.

Why Part D Requires Your Annual Review:

• The prescriptions you need will vary.
• Individual insurers’ coverages are not federally regulated and may differ.

Let’s Get to Know Josh & Dave (and watch our ratings soar!): If you were to be in the circus, what special talent would you bring?

• Dave would use his acrobatic superpowers to be a Cirque du Soleil-style aerialist and maestro of the trapeze!
• Josh would opt out of flying (motion sickness!), but he would love using his many talents to take command of the big top as Ring Master!

#DR2R: Medicare reminds Dave of his checkered past with high school U.S. history, a mandatory class that he had to figure out how not to flunk out. In other words, when it comes to Medicare, retirees either need to study up or find a diehard classmate like Josh to help them pass the “class” – avoiding high premiums and poor coverages!

Stay tuned for an action-packed Part II featuring David Wylly of Medicare Solutions Network, who is breaking down the nitty-gritty on Medicare. You won’t want to miss it!