The Third Option

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Finishing well, finishing well is a general discussion and education of the issues facing retirees guide.com partner advisors on trial CFP some insurance this show does not offer investment products or investment advice welcome to finishing well certified financial planner Harnish Isle and today's show is it's coming up to titles with the First Amendment to say his third option there often is the third option that that we didn't think about the other one is high Medicare. I mean my high deductible Medicare plan G and you could see were getting it in about a minute before you get into that, though, I want to go back to the idea of the third option. So in John chapter 9, you might recall that Jesus's disciples asked him a question. At the very beginning of the chapter, they said, Jesus who sinned, because this man was born blind was it his parents or did this man sin and I left Jesus's answer he gave neither is that it was so that the work of God could be made manifest in other words, that we could see that God is up to something way bigger, especially when it comes to vision because the whole John chapter 9 is about vision and about seeing what God is doing and in it starts with a vision of wow things aren't always either or. There is often 1/3 option and obviously me to sleep quite often in my own walk with Christ and I find myself up against either or like. It looks like it's gonna go this way or that way, it's good to pause and ask God Jesus is.

Is there 1/3 option that I am that I am missing and so that's kind of how we get to where were at today right Hans restart people were getting ready for Medicare there on Medicare.

We got to go to what is binary either or are you going to go with original Medicare. And then, but were you going to go with Medicare advantage that have not either or, that most of the listeners that are on Medicare on Medicare you've been through the end decision. There is you want to pay the premium for a Medicare supplement which is typically your North Carolina 1500 bucks a year 1400 year maybe 1200 year just turned 65 in your 70s and 80s. It might be for $4000 a year, $2500 a year that could be enough money needed to push you over to the other side of the decision which is to go with a Medicare advantage plan and the Medicare advantage plan typically has a zero premium more people say sign me up that you know that's the either or decision. What were talking about today is is there 1/3 option in the third option that my want take a look at is a high deductible plan G Medicare supplement combined with original Medicare, and it can have a premium more typically about five 600 bucks a year instead of 2500 Bucks Best Way to understand original Medicare is to look at it without some and just say okay and I'm on original Medicare and I got the club that I can go to any doctor that accepts Medicare in the country so that that's a real advantage to original Medicare and on original Medicare. You pretty good deductibles and copayments for a large to the point where people are only on original Medicare, and they have no supplement. They can incur some pretty large charges. So let's talk a little bit about what those are is original Medicare part a of Medicare covers hospitalization and for your first 60 days in the hospital saying you have the hospital you got deductible under Medicare $1556 2022 numbers Korea for 60 days so that's a real bargain if you're in the hospital for 10 days. Even if you're only there for three days.

The fact that you only have to pay 1556 is actually a bargain.

You get a lot of Medicare but we actually have to pay it. That's a problem for a lot of men and we just started at the hospital were not in the rest. Then you got the part of the expenses like if you had outpatient surgery worn in the hospital or even if you were in the hospital. The surgeons bill doctors building anesthesiologist all the follow-up care all the stuff that's covered under part B, part B works in an entirely different way it does in 2022 and has a $233 annual deductible so that means that the first 233 box that you and the doctor outpatient or medical expenses is on a page out of your pocket. Medicare pays 80% of whatever charge they approve on their schedule. Most doctors work on the Medicare approval schedule so there isn't any excess charges, but there could be� Make sure were clear on the 80% is Medicare itself. So if you have $10,000 bill or a $10,233 bill.

So you pay your deductible and then Medicare can have 80% of the 10,000 or eight grand gonna leave you 20% or two. So that's kind of a typical thing or somebody's been in the hospital for a few days that they would know $2000 apart of the $233 part B deductible had met earlier in the year and they know that $1556 so he put all that together your uniter 3500 $3600 of out-of-pocket. If you were going on Medicare all by itself would not that many people in so what would happen is if you had a plan G a regular plan G Medicare supplement. Everything would be paid at 3500 bucks except the $233 annual deductible to love these Medicare and Medicare supplement plan G especially people that it had long ongoing serious illness. I mean between Medicare and the insurance company is despite just about everything pay. People are amazed by and so and frankly many times are reluctant to let go of the supplement and for many years, even if the panic time for because it pays so so you know all that being said, the other alternative that we were talking about.

We were looking at this is an either or is a lot of people these days and including you probably have changed over to a Medicare advantage. You did that partly because you are able to get rid of the Medicare supplement premium that was about 14 1500 year dump that no doubt your part D drug plan premium that came with plan and get all that you got two things.

Number one network and we went to work and we make sure that your doctors that you would using and that you currently use are on the network and the other thing we did. We just prepared you for up to about five grand out-of-pocket which is your maximum out-of-pocket on your Medicare advantage plan that knowing you have to get really seriously sick to go through that whole five grand more than likely you have a bad year urine incur to $3000 out-of-pocket for mullah copayments and deductibles and you have to go to the doctors and hospitals on so we got a lot of people in it.

If you're there you want to stay there and you just really listen to the rest of the show, but were not really talking about Medicare advantage plans were talking about people that are on original Medicare, and they're either considering or they have a Medicare supplement so and then to this point.

We talked about the plan G and the plan G going together with the Medicare supplement. In this example, we came up with what they all out-of-pocket separate 233 now the high deductible plan G is the same as the regular plan G except for the fact that it has a $2490 annual deductible slept on the big deal so that's just a simple is identical to the plan G except for is not, start paying like in our example that we came up with for the person was 3500 $3600 of out-of-pocket. This high deductible plan G would've paid about 1100 and then you would've had to pay $2490. So in this example, if you needed to happen. A high likelihood; very good trade-off, but that is critical is that it is at an annual deductible. So like if you had three trips in the hospital in that year with a high deductible plan G are you paying that deductible per incident. Are you paying it annually and you're paying all the cost would've paid $2490.

Another working parent company of this high deductible plan G once a year, the first in a year is making you pay the first $2190 of expense right so if you actually been in the hospital three times that year, I mean on my goodness that's where it really is plan off so as you can see there's a lot of things I gotta talk about.

Aaron said that he shot on high deductible plan G and the third option, so to speak. So stay tuned. Of course, will I remind you that our show is brought to you by Cardinal died.com where you can reach out and email harms get his book the complete Cardinal died planning for living in retirement as well as we want to make you aware of their YouTube channel which is Carter Cardinal advisors will be a video up about this high deductible plan G where you can actually see a chart where cons has all this written out for different states and also to different scenarios and that's there and Cardinal advisors and you and we will be right back with a lot more third option Hans and I would love to take our show on the road to your church and Sunday school Christian or civic group. Here's a chance for you to advance the kingdom through financial resources and leveraging harms expertise and qualified charitable contributions veterans aid and attendance IRA so security care and long-term care. Just go to Cardinal died.com and contact Tom to schedule a live recording of finishing well at your church Christian or civic contact Tom Cardinal died.com that's Cardinal died.com welcome back to finishing well certified financial planner harms silence today show or talk about the third option is specifically the high deductible Medicare plan G which really works out really good for a lot of folks. I know I'm I was not aware the third option actually until you did this video Hans video for you.

Well you can go over to you to just look at Cardinal advisors orders ORS advised doors on YouTube and you can see just in sync with every radio show. The YouTube video with a whiteboard and it's more descriptive and so you can go to that. Watch this thing know what I want to share with you is where I just talk about prices because obviously the plan G by itself or give the high deductible is what most of our customers have and what many of you listening have run Medicare and I'm not necessarily recommended you dump that the high deductible under showing you the option. Yet the premium is starting to get to you a little bit and you you are thinking of going Medicare advantage, but you just decided to stay with what you got because you you really want to be able to pick your own doctors. That's the main reason people want to stay on original Medicare plus a supplement and if the premium for the plan G is a lot you want. Take a look at this high deductible plan G so in the video. I went over for different company offerings exactly operating exactly the same plan G and offering exactly the same high deductible plan G and I did it across three states. One of them be in North Carolina so and I did it for a 70-year-old man who doesn't. His spouse is not married or spouse is not on the supplement and get a household discount is a non-smoker and mentor generally charge a little bit more than women but just using this for an example, when I looked through this guided bio I just buy a regular plan G in North Carolina was like $1442 Mutual of Omaha $1571 in United American was $3276. All felt exactly the same thing. So obviously we don't want by United American of that so we would probably buy at movie guide at our Mutual of Omaha. They're not that far different price and then if we want to compare plan G with a high deductible you can buy that from Mutual of Omaha for $519. So it's about $1000 a year savings to take on this deductible. Once the initial time I tested in a year or adding a $2590 deductible and only saving $1000 but will you describe it is that the option it is a long-term kind of thing. What you are very healthy person who just looking it says you know over the next 10 years without rate increases on the pay Mutual of Omaha 15,000 know $800 under the regular plan J, Pam $5190 over plan G option so you will be a $10,000 difference and I'm just thinking that I'm not man that many $2409 that's important to me. When I looked at. I want allow asking us to unite when you look at it and big huge numbers like that you like oh yeah which is what the insurance companies are really doing when they set the thing up right plainly averages and I think it you know that this is the giving you the worst case example or the high deductible plan G because I'm using rates in North Carolina using a 70-year-old healthy person that's paying $1500 $1400 and $50 a year or there regular plan G and frankly a lot of market to do it and I probably why we don't even show it so when we got on this is what I've known about all along but I got a client that eight years ago I sold him plan G when he was 65 for about 100 bucks and that hundred bucks a month over eight years became like 250 and then he wanted to change to a lower price plan G with a different company a few times and they turned down because he's got some illnesses that just made him this would take when leading by a cheaper rate. So even very happy about that and the skies pretty well to do and so then I got looking at the high deductible plan G and I start looking at all the companies that operate in one of the companies United American. They don't ask us strict health questions on their application specifically for this guy. You can answer all the questions now in glorious premium to about 600 an hour (600 a year like �2600 and 90 saving to grand actually was more than he saving about as much as the deductible in every given year, so he had a healthy year which he had every year since he studies money.

It was kind of a no-brainer.

Some of you are your parents may be in a situation where there there pantry, $4000 a year for their supplement and perhaps they could look at this thing in the premium is still 600 bucks a year 700 bucks a year you in Europe in your 70s and 80s so that this is relevant when you get that plan G rate regular plan G tends to get very high when people are older and this high deductible plan G doesn't go up, so not to mention the other states that are high, like California, Florida, then it really becomes a kitchen right well yeah next to the plate that we really started selling a lot of stuff that you know the example I got on here is a plan G for the 70-year-old dude in South Florida and $4000 a year. The same thing as North Carolina 50 America and so and a lot of people were dealing with work were dealing with financial planning with no money and taken 4000 year and you're comparing it to thousand so even the high deductible plan G is more expensive in Florida, but your saving on an annual basis more than the early, like a no-brainer and some of those days for the people that have the money that also want to choose their own doctor. Many of these people that are affluent that I want on a Medicare advantage plan. Even though the ring premium is zero.

Just because they don't want to be stuck in a networker, whatever the deal is so. Every sick person situation is different and I just wanted to highlight another option. I think about plans the original reason I went on what it paid out for my dad was absolutely miraculous. I mean, he was in the hospital last year is like most of the year and on the limit was paying his bills and the nothing for nothing. It it it it it it truly a blessing. And the only difference with this, he went out $2490 and actually in hindsight, this might've been an option to offer him went before he got sick when I went out there to see him even really think about it. At that time as he was paying over 300 bucks a month for his Microsoft will you still in good health prides when you look, the premium is more than the dockable it's your money. I have just now is the opportunity presents its own colorless is my advice if you get help. Medicare and not just do it one time when you turn 65.

Good consistently over your lifetime. And if you're younger than that and you still advise somebody or your parents are there somebody that is meaningful to you that up in their 70s and 80s and haven't looked at the stuff in years, yet we can sit down with them and we can just look at all the options you know some of this change is may not be what might be real rise once we sit down and we just lay out the group of options we can do some pretty good about people's costs from Medicare nature, not just the cost from my perspective, is considered one of the reasons we can talk about admit that it's a it's a perfect reason why it's helpful to have a Hans in your corner of the study is you know, one of the struggles I had when I was on my plan G was not with the plan G.

It was with the crazy drug plan right at that I had at and part of the advantage of me going on Medicare advantage had nothing to do with the fact that plan G was awesome.

It had to do in my case with I needed some help with my drug plan and so my part D and so that the nice thing is, I mentioned that having a Hans in your corner, is everybody's like you said everybody situation is radically different and things come up that you didn't see coming in here you've got a guy who understands you know all these things and and they're all related right.

What I will add that many people call you when you call in there like money� God called me to help all comers. Okay, I get the love just satisfaction of helping people and very limited means that I tell my people that are very wealthy about as well, and I made any money off of people that have a lot of well fees and commissions and I'm more than happy to help people even pro bono. So don't hesitate if you got a problem with any of the stuff or you think there's an opportunity to get better benefits or savings or just want to consult by all means get in touch.

Travis asks Cardinal guide.com card like the bird guidance.com and they are not assigned Hans's book, which is really helpful to complete cardinal guide to planning for and living in retirement or should I just tell you that having read that book that it's you not to just get the basics on this test so that you can have a more intelligent conversation, you know, when you call cardinal advisors and you know course of constant email address and always right there as well as as we talked about the YouTube channel. We got more information the more stuff that can help you. It's called cardinal advisors on YouTube so again great episode, and so many different options you know but that that third option is just critical in life to think about.

Sometimes when we seem like rep against a rock and a hard place that there's another place. God bless all of you well, finishing well is a general discussion and education of the issues facing retirees Cardinal guide.com cardinal advisors upon trial CFP some insurance this show does not offer investment products or investment advice. We hope you enjoyed finishing well brought you by Cardinal guide.com visit Cardinal guide.com for free downloads of the show previous shows on topics such as Social Security, Medicare, IRAs, long-term care, life insurance, investments and taxes as well as constant best-selling book, the complete cardinal guide to planning for and living in retirement and the workbook once again for dozens of free resources past shows to get Hans book go to Cardinal guide.com if you have a question, comment or suggestion for future shows.

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