Tag Archives: Medicare plan changes

Medicare and HSA’s Don’t Mix

I recently have had several clients who had questions about their options regarding Medicare and how it affects their HSA.  An HSA (Health Savings Account) is a tax advantaged account designed to pay for qualified medical expenses.  Medicare rules state that contributions cannot be made to an HSA if someone has Medicare, either Part A or Part B.  Medicare rules also state that Medicare is considered primary coverage for employees who are on an employer health plan that work for a company with less than 20 employees.  These rules can all intersect for some people.

So, a couple of scenarios arise for people who have an HSA:

1. If they work for a company with less than 20 employees and are on the employer health plan, they should enroll in Part B to have primary coverage.  But, if they are on a qualified High Deductible health plan with an HSA, they can’t have Part A or Part B in effect.  So, these people will generally be best served by leaving the employer HSA plan and go to Medicare.

2. If they work for a company with 20 or more employees, they do not need to enroll in Part B because their commercial insurance carrier for their employer health plan is considered primary coverage.  Someone becoming eligible for Medicare, can delay Part A and B to remain on the employer HSA plan.  They will need to make sure that Medicare does not automatically enroll them in Part A.

If you have an HSA and accompanying qualified High Deductible health plan, think about your options as you approach Medicare eligibility.  If you have questions, you can contact David Higgs at David@ChoicesInMedicare.com or visit www.ChoicesInMedicare.com

Possible Increase in Medicare Part B Premium Costs

Medicare will be 50 years old this month and Medicare’s Board of Trustees released a report this week that among other things, indicated a possible significant increase in Medicare Part B Premiums beginning next year.  While this increase would potentially affect only about 30% of beneficiaries, it could be significant.  Part B premium increases are common but usually small.  The potential increase would primarily affect new beneficiaries and higher income beneficiaries.  The head of Medicare will make a final decision this October.  The report also reported that the Hospital fund is expected to be solvent until about 2030.  You can read more about the report in the article linked below.

If you have questions about Medicare, contact David Higgs of Choices In Medicare at www.ChoicesInMedicare.com.

http://khn.org/news/good-news-bad-news-in-medicare-trustees-report/

 

Recent Study on Medicare Advantage Plan Hospital Costs

A recent study was released on average costs for hospital stays for people in a Medicare Advantage plan.  Some of the comments in the article might make someone fear getting a Medicare Advantage plan the way the hospital costs are explained.  In short, these plans are good for people who are relatively healthy, whose doctor participates in the plan’s network and enjoy the low premium costs ($0 in some cases).  While there is a cap on costs called an Out-of-Pocket-Maximum, some people could hit the caps which range from around $3500 to $6700.  Supplements are a good alternative for people concerned about networks and out of pocket costs, but will pay a higher premium.  A link to the article is listed below.

If you have questions about Medicare, contact David Higgs at ChoicesInMedicare.com

http://health.usnews.com/health-news/articles/2015/06/11/some-medicare-advantage-plans-raising-hospital-nursing-care-copays

Medicare Finally To Stop Using Social Security Numbers as ID

You may have heard about the new Medicare “Doc Fix” bill.  You may not have heard they included a change to Medicare Claim numbers.  In short, they will eventually stop using the Social Security number as the key Medicare ID number.  This change will take up to 4 years to change newly issued cards and up to 8 years to replace existing member cards.  This will be a good change.  Read more about it by clicking the link to the article below.

http://www.nytimes.com/2015/04/21/us/new-law-to-strip-social-security-numbers-from-medicare-cards.html?ref=topics&_r=0

Only 3 More Weeks to Make Changes in Medicare Coverages

ONLY THREE MORE WEEKS REMAIN FOR MAKING CHANGES TO YOUR MEDICARE PLAN.  WE ARE NOW IN THE OFFICIAL MEDICARE OPEN ENROLLMENT SEASON CALLED AEP WHICH RUNS FROM OCT 15TH TO DEC 7TH.  THIS IS THE TIME WHEN MEDICARE BENEFICIARIES CAN ENROLL, DROP OR CHANGE THEIR MEDICARE ADVANTAGE OR PART D PRESCRIPTION PLAN.  AS IT CAN BE OVERWHELMING TO COMPARE AND ANALYZE THE DIFFERENT OPTIONS, WE HELP AND AT NO COST TO THE CLIENT.  GO TO WWW.CHOICESINMEDICARE.COM.