Lower Priced Medicare Supplements

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Welcome to finishing well brought to you by Cardinal guy.com certified financial planner belonged to Schild, best-selling author and financial planner helping families finish well 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 with finishing well welcome to finishing well certified financial planner Schild today show like this lower-priced Medicare supplements which was really relevant to my life because it is age 64 to be 65 year this October in a way we have a case study in Robbie today on that but I but before we go there. Johan's this this this area of Medicare and Medicare supplements is so confusing. It's so you like, you can't help but see the chaos that's involved in wonder.

My goodness did. Satan himself this. I think that's Satan just thrives where you know there's chaos where there is a lack of understanding and so hopefully through today show. You know you we won't get that question we ask Eve, did God really say that you should take in a plan that can't really say that you know of Medicare advantage was the way to go if you know this doesn't some of the lives that we hope to untangle today as we go through actually a bit of a case study in Medicare supplements or there's other ideas along the lines okay so most people that either have Medicare insurance or their coming up on Medicare can't tell me the difference between a Medicare supplement original Medicare and a Medicare advantage plan.

They have no idea what I'm talking and so people that are on Medicare advantage plan. Many of them can identify that they are. They think it's a Medicare self have a dear relatives it's related to my wife. You know she was on a a Medicare advantage plan, but we we spent a lot of time trying to get to the bottom of exactly what she had because she said she really didn't understand yeah so so let's try one more talk in Medicare and supplementing it and preparing for Medicare if you're on it, but let's talk about the difference so got part a and part B of Medicare to really original Medicare part a is hospital part B is Dr. an outpatient. And if you're over 65 probably have one of those red white and blue cards tells you the date it started and if you're under 65 and you have one of those is because you disabled and that's basic Medicare that you get from the government and be now if you have your insurance with a company like I'll just name a few of them. Blue Cross Blue Shield United healthcare Aetna, Cigna, Humana if you got one of those companies you're over 65 and you're not paying a premium for your paying a low premium like 2030 $40 a month. Most likely you're on a Medicare advantage plan. So me tell you little bit about what that is is you made an election at some point maybe last enrollment.

Maybe a few years ago you made an election to the government through that insurance companies said I no longer want to get my party in my part B straight from the government. I want to get it from Humana want to get it from Aetna to get it from United healthcare. So you made the selection and you now when you send in claims or you collect on your insurance. You don't get paid money are the doctors don't get paid money directly from the government they get it from Humana and in exchange for that, you got the presumption of better benefits than original Medicare gives you from the government.

So you get better benefits or smaller deductibles, smaller copayments and you also get some extra benefits. Maybe like they give you trips to the doctor eyeglasses or dentist or something like horse thinkers silver sneakers so you're on a Medicare advantage plan okay and that is very different than a Medicare supplement policy now the people that go the original Medicare route and Medicare supplement they're not on a Medicare management. You can buy a Medicare supplement from all those same companies. I just name every single one of those companies. They also sell Medicare supplement policy, see if your tracking with me is confusing, now yeah and I have been told about the benefits yet which are options and I happen to know that the megatrend manages parts he needed yeah I'm I'm just trying to lay out the groundwork really of the confusion and then were to try to add a little sense to can remove some of the confusion so so why would you want to stay on original Medicare part a part B get your benefits directly from the government and then if you do that most people purchase a separate Medicare supplement policy, which they have to pay for can be 100 hundred 50 bucks a month can be more than that can be 200 bucks a month. So why would you want to do that pay all that money get your money directly from the government as opposed to paying nothing or $20 a month and get there from Humana or something, answer my own question is when you stay with original Mac Medicare. You keep control of your healthcare so you can go to any doctor in the country or hospital that accepts Medicare and you can just show me your Medicare card. Nonetheless, you can run up a lot of out-of-pocket. If you go on the Medicare advantage if you take the zero premium dealer. The low premium dealer I am.

I look at that and I'm going okay and you and and actually as we talked about the word use for me that were very helpful if you walk around Medicare advantage you're sitting on a possible $6000 dollar liability basement what what what you might have to go out of pocket that you get. That is exactly right. And so when I'm looking at that, unlike holy mackerel now compare that to what you shall be given him an and one more thing to spend at $6000 in your pocket you have to go to their doctors and their hospitals.

So if you in the process of spending that much out-of-pocket. You can probably be referred to some specialists and so you've got the added hassle.

If you got a play in network with the Medicare advantage plan to be able to pay almost deductibles and copayments: so as I'm looking at my options. I'm like okay what happens if I stay with original Medicare and I get the what I considered to be that the mental could chaining that the pest plan the best plan.

The plan that seems to make the most sense.

They upgraded plan a Medicare supplement looks like a semi-cost me in the right neighborhood of $90 a month right through you through Mutual of Omaha great, I and then I'm in need of drug plan, which is the cost me another $15 month. So instead of paying $500 a month to have horrible insurance.

I'm sure that if I was director is that I might feel a little differently than that.

When I look at I got six valid out of document and five dollars Muppets have pretty much like horrible insurance to but when I compare that not all I pay $115 a month and the most I cannot have to pay out of my pocket.

If if if I end up with the worst possible no cancer here we go is $190 fine plus you deductibles on your drug plan of the medicines might bill a bit more but as far as mine done for your health insurance just call 200 bucks is your maximum on Park swimming. This appears to be like oh my goodness number one. Thank you God. I mean how awesome are you that you're going to give me an old man at 60 metal anyway. How cool is it that I'm in a get an opportunity based on you know that thing I heard was horrible all my life Medicare like oh, the government horrible stuff all my goodness, this seems like all and understand for my own personal situation. I'm paying 100 and going to be paying very excited about hundred $15 a month with a possible out-of-pocket of 200 versus $500 a month with a possible out-of-pocket of 6000 and it's wonderful and most people come in on Medicare like you, they have no idea how much they're going to like their Medicare once they get on and this option of having original Medicare supplement is is confusing enough everything we've just gone over the first part of the show here, but now when we get to Medicare supplements. Now we can open up a whole box of more options that I haven't really done to this point with you or with the listeners today and the second part of the show were going to go there second listing to finishing well, a certified financial planner on. Thank you for for what you provided for me in this understanding is just almost beyond priceless as I think about what is done for my family was done for me. I come from the book the complete cardinal guide to planning for living in retirement, which is brought you like the show from cardinal guide.com if you go there you see this and worries tab which one of which is Medicare and as we all talk about the whole chapter on Medicare is right there, both in the book the workbook or just email Hans and I say I want the books visit again like we talked about last week's on Social Security. Robbie's plan is not necessarily your plan and this would take him a few minutes to call and talk to a professional time right there free to say give him your situation and and and look at this right yes it is like man this is so we come back whole lot more on lower price.

Medicare supplement.

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 Hans expertise and qualified charitable contributions veterans aid and attendance IRA Social Security care and long-term care. Just go to cardinal guide.com and contact Tom to schedule a live recording of finishing well at your church Christian or civic group contact Tomczyk cardinal guide.com that's cardinal guide.com welcome back to finishing well, a certified financial planner Hans Schild with cardinal guide.com today show attorney about lower-priced Medicare supplement options, which is really beyond cool. Since I'm at that stage my life and we become is looking at that a little bit but there are people lower income people where really can't afford $100 a month and in their Medicare advantage actually is an advantage for them because it will end and there's people that aren't lower income that are just pretty tight with the coin going out every month and they they want to go with those and they put value on those extra benefits so I don't want to sound like were trashing them.

I represent my firm represents those companies that I mentioned to you in the first part of the show we sell us things, and enough room in the real helpful to a lot of people and I'm also a financial planner and we do financial planning for people right retirement right when they're going on Medicare. That's one of the reasons were in this business and I find people very confused when I first this is the typical customer care.

The rich poor educated uneducated people are confused but stop and again they're coming in the door and there they've got a lot of urban legends with them and they got a lot of this is what so-and-so told me and I told this to me, just listen to them for sometimes five minutes and you just say you we did we do the work to do here but educating them about the whole system and limited tell you that most of the clients that can afford financial planning and that there wanting our advice they they end up purchasing original Medicare you get a free get a pay for B and then they buy the highest option plan G Medicare supplement and then they buy drug plan which is going to cost usually 15 to 20 bucks a month for some people and a lot of drugs and severely be in the more but that takes care of most people so what I wanted to do in the second part of the show is just talk a little bit about the high option plan G.

Most people by showing you some of the options within that term. So we ran this not for you Robbie, but we ran this just for averages on a 70-year-old female who lives right here in North Carolina done smoke in this.

These prices include the household discount means that she is married or has another adult living in the house. In any case, I got prices for the high option plan G for this lady. The lowest prices from heartland national life insurance Company, $89.93 a month for this plan G and then I've got four pages of companies that all of which I represent me we could.

We had to go to the second page defined Mutual of Omaha were talking about earlier the exact same plan G for Mutual of Omaha as 101 78 a month so we can have sitdown percent with this lady and would have to decide whether the name of Mutual of Omaha is worthwhile bucks a month, or if you go all the way atop the pay meant you could pay for the same plan G with exactly the same coverages but I guess American retirement life insurance Company feels like they're worth it yellow they do in the these 192 box. These bottom two are with they call substandard plans so there you can buy these and still be sick, so I want to go up a little higher and show you really the most expensive one offering exactly the same thing with the same underwriting of the United American for $220 a month. By the way, thinning and finishing a close enough second to last as AARP hundred 80 bucks a month for the plan G hundred 8006 slot.

It's a lot to pay for name and so the thing which can't just jump out at you is that unfortunately you most the people out there selling Medicare supplements represent how many countries one company soak so they don't even tell you about this list. So just for starters we sitdown work with the client were to start looking around these numbers. This is the first report we ran and then were not necessarily go to the least expensive one. I mean a lot of times we can look down the list and we can go to Aetna health insurance company there only five bucks more and people are more comfortable buying their health insurance from summative heard of before. Doesn't make us any difference mean heartland national's is fine and I know those people. Pan-American is 97. But my point is, is there's a whole bunch of companies selling this for 9000 hundred and five a month and then there's a whole bunch of companies selling it for hundred and 3047 my sanity, killing speaking, you got all kinds expensive at times.

So the person that buys it from you nicely talk about Mutual of Omaha versus heartland national since it's actually Medicare.

I suppose just the bills that are coming are the representation. Since everything is paid but that hundred $98.

What's really happening. It's all done by computer and why these companies hire administrators any and the steps reinsured by Mutual of Omaha men. I happen to know that that heartland national actually reinsurers their Medicare supplement with Mutual of Omaha so the sauna for 20 bucks a month less.

Consider me so well I say anything about that same insurance company same coverage is $21 month less you know so it's it's like to write within the just the plan G which is one option is the best option. I got 28 different alternatives there selling exactly the same thing so thought the market this now if this lady that was 70 had to go through underwriting. These companies can have different rules for acceptance so there could be a reason to go here. There around your turning 65. You get open enrollment right so you do so when we rerun this for you. Underwriting means nothing other than the fact that you could get stuck with whoever you buy it from for the rest your life. So we gotta keep that in the back room.

I know there's no health questions. I say stock is a buy from the cheapest one sight unseen and then you find out that this was really a lousy company and 10 years from now. They're doing a bad job for you that you're stuck with them because you got health conditions and you can't go elsewhere.

So there are some ramifications of all that point I want to make is this stuff is exactly the same from company to company and the pricing isn't an you want to get to an independent agent giving you the advice on this. You don't want to be working with somebody that represent has been working with AARP. I got one option for right here and it's right. I'll find a way we can tell you that if you went through each of all its canopy if you asked them what other people charge they just see. Gotta call them right just they don't even know typically just work here where we are and there's another companies that operate like that to a lot of her show up on your doorstep and you know they were coming. You're probably a little bit over the next six months so I want you to take a guy not a friend invite him in Centennial. I solicited Donald Jesus they got okay next what, then, that we started on with the show and it really wasn't as exciting as everything else we've gone over his. They have this thing called high deductible plan okay and so would it really amounts to is it's the same as the high option plan, but it has its own deductible almost 2400 bucks $23-$2400 annually where you're basically self-insuring so your original Medicare. You pay all the deductibles and copayments yourself till they get to like 23 $2400 and when they reach that level.

Now this thing pays out just like the more expensive high option one. So you got a separate deductible and the price for this could be as low for this lady is 3250 a month, actually with Mutual of Omaha's $33.66 Tori see this is personally fitting into the equation is that you've got people that are right now looking at Medicare advantage because it's got no premium they can afford hundred dollars a month for you know the Medicare supplement with a regular deductible and with one for time out we got a total exposure $198. But this person over here that Mike Chait choose this Medicare supplement with a high deductible actually has less exposure than the person on Medicare advantage so that you $30 a month, at least they're not sitting out there on $6000 of what they truly are low income Lincoln and they had a small bill in their out-of-pocket was a thousand bucks. They can make a deal with the hospital and this also fits in with high income people that are just not willing to pay the hundred bucks in their thinking about going without a supplement and just have an original Medicare is a still want to pick their own doctor.

This is like an umbrella policy, just like if the self-insurance thing gets out of hand. I got insurance that kicks in at 2400 bucks okay and it's darn cheap. So, and we've got one page of option. About seven options eight, nine options, one of them. Are these Medicare advantage comes Humana Aetna, Blue Cross and United world which is Mutual of Omaha so in any case, that's the high deductible option knows 1/3 option that week. We actually do a fair amount of this is just is simply a lower option.

Medicare supplement gives you a little more coinsurance yourself is every time you go to the doctor you're going to incur a $20 co-pay and then if you go to a doctor that doesn't take Medicare assignment and balance bills usually balance bills you can know a little bit still very comprehensive coverage and that Knox the premium down but 20% or so so that I get the lowest one on this is 77 bucks a month. It's not a huge amount, but this is where the lower income people that don't want Medicare advantage one is not available in their area. They got all struggle with paying the premium they still want insurance and this is called the plan in so we can help you with with all this stuff and before were to do any of it just like we done the show were going to sit down and were going to learn all about you. Your preferences and your financial situation and then secondly we can educate you about how Medicare works and how it's gonna work for you and then we can involve you in working up pick a route for you to go in something to purchase to supplement your Medicare and I will tell you we have many clients that just cut me off five minutes in the Dylan's assist. Just tell me what I added by John about happens. I have to have to have seen all the but actually it's pretty helpful for me to begin to understand okay this Medicare advantage in certain circumstances it is the writer" and clearly high deductible GR I can see where that's a case of magnetics even and see you. The endpoint pressure and those people that just with AR's original Medicare part a part B, you get a plan G it's this much a month you get a drug plan. I kente the name of the company actively to put all your drugs in the computer but it's can end up being about 20 bucks a month and that Tom here will sign you up on that and nuts months of the start talking about your savings and your investments and where were going to go with your retirement income for life. So, sign all these letters are its alphabet soup. It comes at you fast, but at the good news is, is, as I've now spent a couple years because I went from total ignorance to tip. I mean total ignorance to beginning to get it to get a sense of it, and it's really available from his book the complete cargo guide to planning for living retirement which is there a cardinal guide.com eight you know as you read through those chapters are you go back to the podcast and you listen to other shows that we done on Medicare and and like me. I'm hoping that you even begin to see what Hans is is learned through the years.

You can be 44 the stomach itself does not experience that that God provided us to Nina to to use to, you know, leverage these resources. For all I have to do is is one around talk. I felt easiest job in high discovery books ignite a different member content guide.com as for houses book and we will look forward to you. Listen next week is less than finishing what 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 and IRAs, long-term care and life insurance, investments and taxes as well as ponds 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 when you get Hans book go to cardinal guide.com if you have a question, comment or suggestion for future shows.

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