Avoiding Medicare Penalties

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This is the Truth Network welcome to finishing well brought to you by Cardinal guy, certified financial planner longs at Shiloh best-selling author and financial planner helping families finish well for over 40 years of finishing well will examine both biblical and practical knowledge to assist families in finishing well, including discussions on managing Medicare IRA long-term care life insurance and investments and taxes. Now let's get started. Finishing well, finishing well is a general discussion and education issues facing retirees.com are no advisors.

I'm sure I'll see if Pete insurance this show does not offer investment products or investment advice welcome to finishing well certified financial planner Shiloh in today's show really interesting topic.

Avoiding Medicare penalties and so you know were always concerned about penalties and you know they just did a video on this series that which I had a chance to watch and at the end of the video.

This database, I believe it was Hans and Tom that were doing this video and and Hans said you know the real problem is it's is like being without insurance is a problem and so as I heard that, I thought to myself G being without assurance is a problem you may have heard the term like blessed assurance because it's one thing for your head to know that you're gonna be in heaven. But how about your heart right and those who know that they know that they know are going to be in heaven. Those people have what they call blessed assurance and so I'm open. This helps you because it sure has helped me with this verse from the hundred 19 Psalms verse 165 it says great peace that shalom great peace have those that love thy law, and nothing shall offend them and the idea of that is this almost was writing that was. As you spend time in God's word right if you love love love the Bible you will be reading it every day.

In fact, the more you read it, the more you love it it it's kind of like a manner that it's it's made for your taste, and it gives you everything that you need and as you eat it it transforms your mind so that you now know that you know that you know that Jesus did pay for your penalties and you got permanent fire insurance on this telling so that you could have blessed assurance and so were hoping that by listening to the show today right Hans that people will get an idea of some kind of a blessed assurance about not having Medicare penalties on people that are coming in five hair about the whole business of signing up for Medicare. Yet they don't even bring it up in the beginning because people like they say like this still working I've got group insurance or money is still working. He had a group insurance on the defendant. Then I asked them all.

The question you know like a group of 20 or more big employer will be creditable coverage are you happy with the coverage how much you pay for the coverage and then I show how much Medicare cost them and shown with the coverage is in general terms, and we make a decision.

A lot of people we end up saying you know, essentially, from our perspective, when I tell you anything right now.

Nothing because you don't need to do anything other than just stay right where you are from Africa will discuss whether you sign up for part A, which you can do and not part B and not part D as long as you have that group insurance can what they'll do it then built that list and all that and the one about the family and I can just stand here and even looked at how much it is terrified of it. Then I want to do something wrong right now.

I think you said some really important here that I don't want people to just jump ahead of because in my case, you know, it really is helpful to sit down with somebody and look at all the options of this is your turning 65 right because in my case I did have I and I am working. I did have group health coverage, but by going on Medicare. I increase my coverage significantly and reduce my cost so you just because you're on a group health insurance is mean all you need to stay on that don't even look at this because I know there may be a lot of people that are in my boat that went all while luck I'm getting better coverage and I'm paying less for it by switching to Medicare and so glad that I did on so many different levels and save me a ton of money that first year on on being on Medicare so I it's it's definitely some you need to spend some time looking at right Hans, we know in their approaching their nine month out for lunch with her spouse. There are mean what people are confused and terrified about more than just penalties are concerned or worried or whatever word you want to use their status quo with health insurance and to the point it worked out okay. They think they you think that maybe they have been.

Maybe they have you that our health insurance is okay now.

I got 55, nothing at all you people calling me got all this junk mail company and got no friends. The same age and they're telling all different things and I got a change something I gotta do something. You know it can be changed.

No matter what and so people are naturally don't like change and they're going to be scared of change and upset change and then you know they're going go right in and start buying insurance is what a lot of people do, because that all people, have the offer that person like me just comes into the value going on Medicare you 65. Sign up for and then by the policy for me. You can be great and we don't do things the first thing we want to do that. Do you want to get Medicare do you need to get Medicare now so if you remove the work. If you don't have work insurance as an alternative, then the answer is yes. You need to get Medicare now, but if you group insurance. There you go through a little more work and got the site number one is like in your case. Probably I was wanted by you, your group insurance was expensive. You had a quite a bit you personally and then your employer paid quite a bit yet pick one event so that the problem and then the next problem if you had a pretty good deductible on that if you got sick.

It would have cost like $5000 you yeah yeah that was it that you really didn't have the option to your group didn't have 20 or more people on any but I didn't even need to get to that because the situation you were in when we compared it to get on Medicare environment supplement event better. You were better off going to Medicare and get and what we did so you you are and we never spent much time on penalties because you not okay right now what I want to tell people is the are really the least of your problems and that's what you picked up on the video so that you don't sign up for Medicare part B and part D when you're supposed to, which is at 65 and then you later want to get on. You are to pay a penalty and that penalty want to start on the rest of your life. You can't do anything to get rid of it.

So. Without even looking at the amount of it that even the biggest problem is if you're all of a sudden 68 years old and you discover that the group insurance you are relying on not creditable coverage or maybe you just stayed on your Obama care plan are your affordable care act planner you are, whatever you did sign up for Medicare and what you had is not a suitable substitute for the government and you now just discovered this, or maybe your group plan ended or something and then you sure yet when you get out. Part B penalty.

But if that happened. Right now, in August 2022.

You can even get on part B of Medicare until July of next year in the retail network is that the only time a Application for part B for late enrollee is January February March sometime in those three months you need to apply for part B and then once you do that you wait until July 2023 July 1. That's when your Medicare part B will start so you had to go for without it for 11 more months that he wanted and asked where you got no insurance and I have some people might not find it.

That's that's the real real deal, but again the idea that the crux of it is he going to have a lot of people are not getting on Medicare at 65, but they have credible coverage and so therein lies the big deal is. Do I have credible coverage right exactly. I can help you with that turning 65. We can sit down with the literature, group insurance and I can I can tell you whether your group insurance is about to be credible. The people where we got difficulty is when they come to when they 68 and now I want Medicare and help them get it. We have a lot of the way we do. Out of these regulations without telling the government for, but said that we always fix this, but it is a problem and sometimes we can't fix it because when you want to get on Medicare later you're going to need to prove to Medicare that you had creditable coverage. Whole.

Time South and I go through the second part of the show what all that is that you understand a little bit better if this is in front absolutely and so that's a good time to mention that the suit was brought to my carnal guide.com and since you got a cargo guide.com and you look on the seven worries tabs across the top one to be Medicare and if you click on Medicare under that, there's can be resources and the resources include the show notes, both for the video in today's radio show that you actually even have the Medicare forms on credible coverage and in information all sorts of resources along those lines that all have to do with what were talking about today, it's all right, Cardinal guide.com as well as Honda's cargo guide to planning for and living in retirement and so when we come back more than the nitty-gritty of how to avoid fees and penalties will be right back. Hans and I would love to take our show on the road to your church and Sunday school Christian or civic room. Here's a chance for you to advance the kingdom through financial resources by leveraging Hahn's expertise and qualified charitable contributions veterans aid and attendance IRA Social Security care and long-term care.

Just go to cargo guide.com and contact time to schedule a live recording of finishing well at your church, Sunday school or civic contact time that Cardinal guide.that's Cardinal guide.com will welcome back to finishing well and certified financial planner Hans Schild by Cardinal guide.

Of course, in today's show, avoiding Medicare penalties so Hans you down the nitty-gritty here. Yeah, I really show I'm worried that in the blood current and everything that you put me on the go read that I am the you know the insurance but I'm here today to talk about insurance out what were talking about it penalty and you know the people that were not even on today's show going to identify the monetary penalty understand this from the day you turn 65 are from the first of the month that you turn 65. The rest of your life. Your accountable to have Medicare. In other words, the government 100% of the people that sign up for Medicare that are entitled to letter eligible for participation and that's the reason for the penalties if they want everybody to sign up at 65 so they don't just have sick people find enough and that the healthy people are not enrolled yet and so they put a penalty and what we have a lot of people who that are working beyond 65 and yet they get these messages that if you don't sign up for Medicare 65. You can be penalized later. And although that's a true statement.

There's a way to get out of penalty and the way to get out of penalty later is to prove that you had creditable coverage elsewhere. So, the government made a provision in there that says you don't want to sign up for Medicare 65 Wednesday in your group insurance stay out of the Medicare system and then when you do want it later.

Like you are hearing about your tires or sicker. For whatever reason they get laid off a loser insurance. Now you going to go to Medicare and you can open a special enrollment period will help you do and then they're going to ask you to have your employer sign form CMS L564 which we have right in the show notes on furniture, employers can assign it to give accountability for you having other health insurances credible for the period from your 65 on and send that in along with the application for Medicare part B and therein enrollee right away and they're going to waive all accounts so if you can't send in another work you covered wasn't credible or agent didn't have anything else you can pay a financial penalty for late enrollment penalty on your part B for the rest of your life that is not even the work from the work problem is your faith in the late enrollment would take you some. Time to get into the Medicare system and that the real pal and so what we want to do is help you avoid at the same time went on to sit around worrying about it as you have everything in order and I want tell you another place that people get in the same problem is the people that lapse their part B a few client that usually the well-to-do client because well-to-do people have a lot of money in their account don't pay attention to their bank drafts they're looking at something now and you know I had this guided lab student parking now for a lot of the other intake and ISA security check, but this guy is 67 years old still work. The self-employed need Medicare supplement for me, but he lasted Medicare and any deployment on Medicare because they were sending bills to his old address or whatever doesn't really matter with the government. He had a period of time where he was last and it took him until last month, July 1 to actually get back on part B and she's now paying a lifetime healthy for the rest of his life.

Probably not a huge amount of 2030 bucks a month so he can afford it but the really humidity had yet no insurance for four, six, eight, 10 months on what happened. Fortunately it didn't. Nothing serious but any way shape or form.

If you're not covered under part B, you don't qualify for an exception present.

Time you are going to pay a lifetime penalty in your face to late enrollment get back on and that's the same for part D as well since I have a friend didn't realize you know the part D plan that the drafts were going through and the same kind of thing that that lapsed and so their part D. They have a penalty for the rest of their life right different formula. Same thing monetary penalty and Dan, you know, the late enrollment they're not, they lose their ductility back in. You have to wait till the annual enrollment. Become somebody like me and will re-enroll Yale start January 1 again. The big problem here is the delay enrollment is worth penalty in the county itself and unmarried father.

You gotta keep current on keep current on Friday because once you're on it. There's no premium is but part B, you need to keep current. You need to make sure that premiums paid is deducted from your. Technical problem but if there's any other bill or taken on your bank draft you make sure that things paid and then argue the same way you know so and if you have a period of time that you can account for having substitute coverage or creditable coverage, you got world there is actually nothing we can do about it for you other than consult human explain the rules so this is not something you want take lightly now.

And so, again, for those who are not as familiar with the part D is a drug plan that were talking about. So that's a different thing than your part B, which is your you know your doctors and that kind of stuff are you part a is your hospital and and so the parlay comes with the deal. But the part B. They were there taken a pretty good amount out of your that you gotta pay every single month. What is it $120 for the hundred and $70 a month right that they yell again.

Check if you get one but inherent a layperson like you are then you get paid and they can do a bank draft or whatever, but is your responsibility to see if they get the money I sent the government work.

Guys like John the IRS by G.I. forgot that in the check.

You never have your fill didn't care about the place at the wrong address.

We don't care you all of stack 20 is your responsibility to pay out so having Medicare works the same way those people are all in good hands. So we try to set people up with the consulting with the concept that happened like. I recommend putting your part B on bank draft and I do that so that you can just see in their mother taken out and if they fail to make the deduction that you maybe have a little bit of a case with the government. But if there's any ability or PO Box and you're just relying on receiving that and then mailing a check back in.

Something goes wrong is your call so we set people up on Baker actually like that and then the measurement part BIK people that just dump their party to their management display. Why don't get anything out of it I think is ridiculous to pay the premium when I can go to a good RX and Jennifer left okay that's fine if you not taking any drive but what can happen five years from now when you get some serious and you got expensive drugs and you can't give him a good RX you want to get back on part D now you have a problem. The same thing is later. All or you can have a penalty which you could live with. But you have this delayed enrollment you have to wait a while before you can actually get a parking plan and so I what we do for those people is we put them on silver script which is 67 dollars a month so it's almost like you could say here's a plan, but let's just assume you get nothing out of it.

You probably get something out of it� Assuming you get nothing major. Paying $84 a year to just comply with Medicare and seven bucks a month and is well worth so you know it we get some of those people out there that think