Yes,
Medicare is heavily subsidized. But it is hardly free
by Phil Moeller | April
26, 2019
The costs surrounding
Medicare are arguably one of the biggest points of confusion for people about
to enter into it (hint: it’s hardly free).
In this week’s
column, Phil Moeller, the author of Get What’s Yours for Medicare: Maximize Your Coverage, Minimize Your
Costs and co-author of the updated edition of How to Get What’s Yours: The Revised
Secrets to Maxing Out Your Social Security, offers advice on
this topic.
Got a question of
your own about Medicare or Social Security? Send it to askphil@considerable.com.
Is Medicare really a
bargain?
Loretta: I am so fed up with
excessive health prices! I wish someone would publish all the compensation
received by health care CEOs, clinics operated by physicians, and
pharmaceutical profits.
For the past few
years, I’ve been buying my health insurance from my state Affordable Care Act
Marketplace. With the subsidies, I paid less than $100 a month. Now that
I’m turning 65, I’ll be paying $135 for Medicare Part B plus $57 for a Medicare
Advantage plan.
So, my costs will
nearly double even though I have the same income, live at the same address,
etc.
Many people are
surprised to learn that Medicare is not the bargain they assumed.
Where’s the fairness
in all of this? Thanks for listening.
Phil: Thanks for your
note. Many people are surprised to learn that Medicare is not the bargain they
assumed.
While big CEO
paychecks clearly don’t help, the real “culprit” is that health care costs
twice as much in the U.S. as it does in Europe and other industrial countries.
Also, I know that
many people are as surprised as you were to learn that their out-of-pocket cost
for Medicare is less than for their Marketplace plan.
After paying payroll
taxes for Medicare their whole working lives, they logically assume their costs
will decrease when they get Medicare.
As you learned, this
isn’t the case. Marketplace and Medicare both receive government subsides but
they are larger for the Marketplace plans than for Medicare.
So, while both types
of coverage are heavily subsidized at the federal level, your out-of-pocket
costs rose when you moved onto Medicare.
Can I still file on
my ex’s Social Security?
Sharon: Can I still file on
my ex-husband’s Social Security even though he
put it in our divorce papers he doesn’t want me to be able to?
Phil: Yes, you can still
file. Your husband has no control over this. He has no legal right to insist on
your not filing, and I don’t even know why he would want to. His benefits are
not affected by what you do.
What’s the best way
to plan for long-term care costs?
Michelle: Hi, Phil. My
85-year-old uncle has advanced Parkinson’s and has a urinary catheter, is bowel
incontinent and has a permanent feeding tube.
He’s maxed out his
rehab and is now being transferred to a long-term facility. I don’t think he’s
eligible for Medi-Cal.
Although he and his
wife have assets, they will burn through them in a year or two at $15,000 a
month!
My own mother is 85
and in relatively good health at this point, but I’m realizing now that she
could find herself in a similar situation if we aren’t proactive.
Thank you in advance
for any direction you may provide.
Phil: The devastating
cumulative burden of assisted-living costs needs to have a more prominent role
in financial planning and efforts to shore up Medicare, which does not
currently cover long-term care costs.
It is seldom that my
replies suggest people find an attorney, but that’s my thought here, both for
your uncle and mother.
In your uncle’s case,
it seems that he would qualify for Medi-Cal once he has spent down his assets.
There are attorneys
who specialize in this process. I don’t do recommendations and suggest you
reach out to the National
Association of Elder Law Attorneys for a recommendation to someone
in her area.
Your mother might
benefit from similar advice to help develop a spending plan should she require
assisted-living care as well.
I don’t know anything
about her financial situation, of course, so it’s possible she should consult a
financial adviser if she doesn’t already have one.
No comments:
Post a Comment