Working with independent health insurance
brokers can save time, money
My Medicare moment has finally arrived. I
signed up for Medicare Parts A and B for coverage beginning in December, the
month I turn 65. Now my mailbox is brimming with advertisements for Medicare
Advantage plans and Part D prescription drug plans, and my voicemail is
cluttered with reminders about Medicare open enrollment.
Ironically, the barrage of advertisements
about Medicare open enrollment, which
runs from Oct. 15 through Dec. 7 each year for coverage beginning the following
Jan. 1, is wasted on me.
As the spouse of a federal retiree, I don't
have to make any of those choices. My husband's federal employee health benefits
(FEHB), which we pay for each month through deductions from his pension, serve
as our supplemental insurance so there is no need to buy a Medigap policy. And
as the FEHB plan includes prescription drug coverage — typical of many retiree
health plans — we don't need a Part D plan.
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But I sympathize with the 61 million Medicare
beneficiaries who are bombarded with Medicare advertising each fall. No wonder
most of them choose to tune out the noise and
stick with their existing coverage.
But that can be a costly mistake. For example,
prescription drug costs can vary by hundreds or even thousands of dollars per
year between drug plans, according to the Senior Citizens League. Yet most
Medicare beneficiaries don't compare drug plan options during Medicare's annual
open enrollment period, mainly because the process can be so overwhelming.
While I applaud the growing trend of financial advisers who are
incorporating long-range health care cost estimates into retirement income
plans, I think many clients would welcome some help with
their more immediate health care costs and the decisions related to Medicare.
I'm not suggesting that financial advisers
should become Medicare experts. They have enough on their plate keeping up on
the latest market trends, investment options and distribution strategies. But
there are experts — independent health insurance brokers — who could help your
clients with critical Medicare decisions, possibly reducing their health care
costs and allowing them to keep more of their investible assets working for
them.
"There are thousands of highly trained
and competent agents who can help you enroll and there is never a charge for
their services," said Jay Cox, an independent benefits brokers at Personal
Benefits Service in Indianapolis.
I asked Mr. Cox what message he would like to
send to the financial adviser community. "We're not trying to steal their
clients," he said. "We want to work with them for their clients'
benefit because nothing will ruin a retirement faster than a health care
crisis."
Referrals to Medicare insurance brokers can
also work as a two-way street as some health insurance clients may be looking
for recommendations of a financial adviser who can help them with their
retirement plans, said Ron Iverson, president and executive director of the
National Association of Medicare Supplement and Medicare Advantage Producers
Inc.
Medicare insurance brokers are independent
agents who represent multiple carriers. They can help individuals review their
options and search for a plan that fits their individual needs and budget.
Medicare brokers are paid by the insurance companies they represent and cost
consumers nothing. Some agencies also offer additional free services after plan
enrollment, such as tracking down billing errors and writing Medicare appeals.
"I've noticed a trend that more financial
advisers are open to working with Medicare brokers," said Danielle
Roberts, co-founder of Boomer Benefits, a nationwide insurance firm based in
Fort Worth, Texas. "It gives advisers peace of mind that they are handing
their clients off to someone who can help on the front enrollment end and the
back end."
Some advisers may want to work with local
insurance brokers who can meet with clients face to face. Others with
farther-flung practices may want to work with a national insurance agency that
can help clients all over the country.
Ms. Roberts recommends consulting the website of the National
Association of Health Underwriters, the trade organization
representing professional agents and brokers who work with Medicare
beneficiaries and Medicare products. There is a "find an agent"
feature searchable by zip code.
Although the current Medicare open enrollment
season is half over, it may be worth investigating some local insurance brokers
or national firms that could help your clients next year or beyond with
their initial and
ongoing Medicare decisions. That way, when you discuss health care costs as an
ongoing part of their retirement plan, you can point them to a professional who
can help them evaluate their health care options and possibly save them a
lot of money.
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