Choosing a Medigap Plan

So you just turned 65 or you are about to, you have to sign up for Medicare and maybe even a Medicare advantage plan. But now that you've reached your golden years is that all the insurance money. Well, there's one more piece of the insurance proposal might want to consider a Medigap policy could save thousands in medical bills advisors Pres. Rob West has what you need to know about Medigap plans now. Today's broadcast is prerecorded. Don't try to call him no one's there, but I hope you'll stick around, that's great information coming today on moneywise live surround Medicare covers some things obviously Medicare advantage plans are like stop Medicare plan.

So what is amending Policy. Yeah, it's a good question and think of it like an extra form of health insurance. Steve you can buy if you already have Medicare like a Medicare advantage plan, which is also called part C. A Medigap policy will help you pay some of the costs that aren't covered by Medicare parts a and B with ANB you still have to pay deductibles, co-pays and coinsurance were approved medical care and services which can add up quickly. Of course, so enter the Medigap plan. It's a private insurance policy that can help you pay for some of the out-of-pocket costs.

The just are covered by Medicare of the premium would of course be in addition to your Medicare part B premium and part D prescription drug premium that one important thing to remember is that you can't have a Medicare advantage plan and Medigap insurance you have to choose one or the other to supplement the basic Medicare. It's good to know. Alright, so then I guess the question is which one is better Medicare advantage or Medigap. Yeah. And of course it depends right depends on your finances and your health circumstances. Now comparing the two Medigap coverage will usually have a higher monthly premium but lower out-of-pocket expenses, but the Medicare advantage plans generally cost less and cover more services, so you might look at it this way if you're in good overall health. You might choose a Medicare advantage plan, but if you have a covered condition that requires frequent medical services with co-pays will then Medigap might be the way to go. Something else to consider traditional Medicare and Medigap policies cover you for any doctor or facility that accepts Medicare but Medicare advantage plans usually limit you to the doctors and facilities in their network okay will that's important Medigap costs more but you get to choose your doctor. That's an attractive feature obviously for a lot of people for various reasons. So, who's eligible for a Medigap policy. Yeah, it's fairly simple. If you're 65 or older and eligible for Medicare and you arty have Medicare parts a and B, well then you can get a Medigap policy.

But again, not if you already have a Medicare advantage plan. As a reminder, you can have both are and what does a Medigap plan cover.

Well, as you mentioned at the top Medigap plans in general cover deductibles, co-pays, and cover coinsurance costs but then things can get really confusing. There are actually many different types of Medigap plans and each is identified by a letter you ready for this. I was a trade of that there is a BDG KLM and in just in case you were wondering. Each plan provides a different level of supplemental coverage to Medicare you have to pick the one that best meet your needs. Fortunately, you can find a comparison of the different Medigap plans@medicare.gov and this should help simplify your decision all Medigap policies have standardized coverage. Every company offering. Let's say Medigap L has to cover the same things.

The only difference will be the price. So after you choose the lettered plan that works best for you just shop for the lowest price in your state okay and what might you expect to pay for Medigap coverage yeah exactly varies depending on your state in the plan you choose, but the average is about 1500 a year or hundred and 25 a month. However, that's only for an individual under the rules your spouse would have to have a separate plan. One of the thing to keep in mind Steve with a Medigap plan.

You may also want to get separate Medicare part D coverage. We mentioned this earlier. It doesn't cover prescription drugs and that's were part becomes okay so if I decide to go with the Medigap plan assuming I can work through the alphabet soup 01. Do I enroll in one what you can sign up for any Medigap plan offered in your state during the six months after you enroll in Medicare part B during that initial enrollment window you're eligible for any plan, even if you have health problems the company has to take you on and they can't charge you for a medical condition after six months you no longer have that guarantees and you can find lots more great information about topics when you visit our website live.org now going to break for just a moment will be right back money and life run on the same track. Unfortunately, sometimes it seems like your money is heading in a different direction from your goal, and never enough three keys to financial contentment. Author Ron blue helps you to break down all your financial options to a basic floor and then shows you how to keep it all chugging along in the right direction on the same track never enough three keys to financial contentment available when you click the store button@moneywiselive.org you have money in a retirement account for just a general investing.

You know, the stock market sometimes possible to enjoy both profit and peace of mind and investing no matter what's happening. You can see a short video webinar on that topic.

Sound mind investing.org since 1990 sound mind investing funds offer financial wisdom for living well sound mind investing thought Margie. This is not why should we pay close attention to God's word, the Bible from Proverbs 4 my son, pay attention to what I say listen closely to my words come out of your sight. Keep them within your heart life to those who find them and help to a man's whole body of all mouse guard your heart rate is the wellspring of life. Put away perversity from your mouth. Keep corrupt talks often on links but your eyes look straight, fix your gaze directly before you make level paths for your feet and take only ways to not swerve to the right conflict from Proverbs 4. Listen to the Bible so do you feel like your hands are tied with deck preventing you from serving God. If you have credit card debt. Christian credit counselors can help through our debt management program we can get out of credit card debt.

About 80% faster while honoring your debt info. For more information on how Christian credit counselors can help visit Christian credit counselors.org Christian credit counselors.org or call 800-557-1985, 800-557-1985 pleasure to have you with us today. This is moneywise more that other guy with the answers. He's wrong and were on the program. Today, however, we are pre-recorded. We will be taking your calls but we've lined up some calls in advance that I think you'll find interesting, helpful and very very practical.

At least we tried to make them that way so stick around around many last thing is, as far as Medigap coverage is concerned, anything else that that we as Christians think about or consider what you know Steve, we often talk about health sharing plans were Christian share each other's medical bills and we have been the big fans of the work of the Christian healthcare ministries is done for a long time effects of our team members or even on that plan.

There are other great ones out there.

You might even hear some on this station that you're listening to this is the one that we just have the most experience with Europe moneywise and we often hear from folks saying does that apply during this season of life and what I would say is know if you arty have a Medicare advantage plan, but you like some additional coverage.

That's where medical cost sharing ministry could be effective as a supplement, and you've got to of course qualify for it, but it really can be a great option. So check that out again. We would love for you to look at Christian healthcare ministries, among others. You can find them online@chministries.org but with for instance Christian healthcare. You can have both Medicare advantage and their coverage, which costs about the same as a Medigap plan and so that would be another option to consider that option and another option for reaching Rob today. If you have a question or a comment, it would be by email. Here's the address questions@moneywise.org its brief questions@moneywise.org if you want Rob to read your question or answer your question on the year. I'll do the reading part make it brief, just a couple of lines like this one from Kim dear Rob, my husband is 66 and retired. I'm 61 and self-employed were out of debt and have more than six months of savings. How much should I be putting into retirement. Yeah well again you got a situation here.

Your husband is retired, you're still working. I love the fact that you're out of bed and you got that six months of savings. That's a good thing.

You know, we say that we really want you to move toward being debt-free over your lifetime and that includes your home as you're able.

Remember, we gotta pay her taxes. We gotta give want to be systematic and generous givers we want to be systematically moving toward paying off all consumer debt and we want to be putting money away which would include things like short-term savings goals member try to buy that house or save for college or long-term saving for retirement, but then ultimately we want to pursue a goal of becoming completely debt-free as you think about what your needs are. You really need to establish Kim a financial finish line for you and I think you could apply some rules of thumb, but what I would prefer to see you do is to do some real and meaningful. Planning with a competent professional. I'd recommend you find a certified kingdom advisor in your area. You can do so would moneywise live.org just click on find a CK height interview CK in the financial planning discipline at least three. Pick one.

That's the right one for you and what you be looking for in this process is what are your needs.

What is your lifestyle to look like. What is your budget going to look like when you are both retired.

How much will it take to fund your lifestyle and the fact your debt freeze can keep that down lower. Certainly that would be otherwise. And what is the amount of assets you would need to generate the income beyond any guaranteed sources like Social Security or pensions that you would need to save for and how does that compare with what you already have and what you might find is you've Artie reached that place or you're on track to reach it, and in fact if you do nothing more than just what you're already doing.

You'll be there and that would give you some peace of mind and know you can increase your giving birth. Perhaps consider other options with surplus. Now, if you find your behind that would be an opportunity for you to say okay during the rest of my working life. I'm going to really strive to put away some extra money so we can reach that goal that would come out of the planning. Kim and I think that's really the benefit that would give you again a lot of peace of mind knowing that you have a plan and you're working towards something right and I Kim Weir were glad that you get through to us today and again if you'd like to send Rob a brief email question. The address is questions@moneywise.org Rob, let's go south to Clearwater, Florida Lisa, thanks for calling today and what's on your mind going back to your whole conversation Medicare when you're 65, right you yeah that mean, that's where you're going to get the best cost for Medicare. You don't have to but it will cost you more later if you miss that six month window really has no effect on when you take Social Security benefits.

A lot of folks will delay Social Security but you will have that option later. The key is it just may cost you more and that's what you want may want to consider going ahead with the Medicare part of my question quite sure how that worked.

Yeah. And I think that's the key is recognizing there really is a difference between when you want to start collecting on your Social Security benefits and when is the optimal time to begin signing up for Medicare and then considering other options now yeah that's where I think you need to begin to look at what is ultimately going to solve for your needs. Giving your health status. Given your budget. Start comparing on the website. We mentioned earlier, the various options so that you know exactly what you're looking for and then you can price shop those in your state and determine what is the best thing for you right now but just recognize you will experience that increased and cost down the road if you don't take that now on we appreciate you calling it Lisa got bless you Lisa, thanks very much quickly to Indiana Arthur, what's on your mind today sir, thank you yeah Arthur appreciate you asking that a certified kingdom advisor. This is a financial professional in one of five disciplines whose earned the designation that simply says they met character requirements. Experience requirements and they really been trained to be a specialist and biblically wise financial advice. Other not employed by moneywise. These are professionals with a whole host of different financial services firms. They just simply earned this designation that really speaks to their competence character and specialize training now as to the cost that would really be up to each professional I mention there in five disciplines.

They work as financial planners, investment advisors, tax and accountants also estate planning attorneys and then insurance professionals and each would have their own schedule of fees and how they get compensated one of the most critical questions you would always want to ask a financial advisor you're interviewing for any one of those is how are you paid and what is that look like so that there's really complete transparency in that area. I will say though, Arthur. If you're looking for somebody to do financial planning or investment management, typically with those folks and certainly with other disciplines as well. You would expect to get to a free initial meeting were you all could meet each other and determine whether it's a good fit before you engage any services and begin to pay somebody for their time and certainly before you were to take on any product of any kind like an insurance product if that's what you're looking for, so you shouldn't have an initial cost, but ultimately you want to know what is the cost involved in the professional that you're interviewing and that's why recommend you sit with at least three before you make your decision. Is that helpful or will all website all yes sir I go to moneywise live.org.

Click on find a CK and put in your ZIP Code. There's about 1500 of them across the country.

You may not find one right in your backyard, but there's a good chance you will if you don't find one. You could certainly connect with the one that's the closest to you.

Arthur would like to call me hope that information helps you wish the best things very much.

This is moneywise with Rob last today's broadcast is prerecorded, so we won't be taking any calls but we have some calls lined up in some great information coming your way that I think you'll find usable at the very very.

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Okay I probably encourage you to roll that out to an IRA. Do you have a traditional IRA already