Inexpensive Medicare Plans Let’s face it, Medicare insurance can be expensive. Original Medicare Part A is free due to earned work credits, but Part B costs nearly $150 a month for most.

And Medicare Parts A & B only cover so much. There are still gaps like deductibles, coinsurance, prescriptions, dental, vision, hearing and so on.

So how do you fill these gaps, reduce your out-of-pocket, and not break the bank? Below we discuss six inexpensive ways to shore-up your Medicare coverage.

1) The Case For $0 Medicare Advantage Plans

Also referred to as Part C, Medicare Advantage plans offer an affordable way to strengthen your Medicare coverage with little or no premiums. There are some things to know first, however.

When choosing an Advantage plan, you’re turning your Medicare benefits over to a private insurance company like Aetna, Humana, UHC, or one of many others. This means you need to stay in their networks and use their doctors and hospitals. And these plans usually have more out of pocket exposure than staying on Original Medicare and purchasing a Medicare Supplement policy.

However, the good news is many Advantage plans have very low premiums. Several can be found for $0 a month. If your healthcare providers are in network, this coverage can be a good overall fit. And most policies also offer a wide array of ancillary benefits.

Most policies include prescription Part D drug coverage at no extra cost. It’s also common to see dental, vision and hearing benefits included as well. Still others include meals during recovery, quarterly stipends for medical supplies, and free transportation to doctor’s appointments.

All of these benefits can be found in many parts of the country for $0 a month. So that’s an all-in-one plan with nothing else to purchase. You may face more out of pocket exposure for major health issues, but the premiums and ancillary benefits are hard to beat.

2) Medicare Advantage With Part B Reimbursement

A new wrinkle to some Medicare Advantage plans (like the ones mentioned above) are those that offer Part B give back provision. We know government run Medicare is not free.

Most people are entitled to Part A at no cost, but almost everyone pays Part B premiums to the government each month.

However, when you enroll in certain Medicare Advantage plans (even those with $0 premiums), the insurance company will pay a portion (or all) of your monthly Part B premiums. The amount reimbursed varies, but it can be up to the full $148.50, however. This offers a tremendous savings to consumers.

You’ll of course want to make sure the plan is a good overall fit for your needs. Purchasing any Advantage plan on cost alone may be unwise, but reducing your premiums through Part B reimbursements is a great way to lower your monthly outlays.

These policies aren’t available everywhere, but they’re worth considering if you live in a county where one is offered.

3) Enroll In A Medicare Medical Savings Account

Cheap Medicare Insurance Another new gift to the over 65 market are Medicare Medical Savings Accounts. These are high deductible $0 Medicare Advantage plans that offer a separate tax-advantaged account funded by the insurance company.

The insurance company’s contributions always belong to you – even if you disenroll and choose different coverage later. You can spend your allocated funds on a tax-free basis for Qualified Medical Expenses. The coverage works much like a Health Savings Account for those under age 65.

Each year the insurance company contributes a couple thousand dollars to your account. These contributions could be used to meet the deductible, pay for prescriptions, vision & dental care, and a host of other items.

If you don’t utilize much healthcare, your savings account can grow significantly over time. The insurance company will continue to contribute each and every year. And by government rule, your premiums must remain at $0 a month.

The amount contributed depends on which policy you select and when during the year you sign-up. Contributions are prorated if you sign up in the middle of the year.

These no-network Advantage plans work well for savers in above average health who like to keep control of their finances. Medical Savings Accounts don’t include Part D drug coverage, so you will need to purchase that plan separately. Overall, there’s a lot to like about $0 MSA policies.

4) Inexpensive Medicare Supplement Coverage

If you’re worried about the network restrictions you can encounter with some Medicare Advantage plans, you might consider an inexpensive Medicare supplement plan. Depending on your age, gender and State of residence, you can often find Medigap plans for under $50 a month.

One such policy is High Deductible Plan G. It has a one-time, yearly deductible near $2,340 a year. Worst case scenario, that’s the most you would face in any given year. That’s much less out of pocket than several Medicare Advantage plans – and much less exposure than having nothing at all. All of that for a very reasonable price. We see a lot of interest in this particular policy.

And no matter which supplement you might choose, it’s wise to shop when your rates increase. Medical underwriting will likely be required, but it you pass, you can lower your rates dramatically. We help our clients shop whenever their rates increase significantly.

5) Keeping Tabs on Your Part D Drug Plan

If you own a Stand-Alone Part D Drug policy, then it can be advantageous to compare plans each Annual Election Period (AEP) in the fall. Failing to do so can cost you money. We see a lot of consumers with old Part D drug plans paying $50-$80 a month. Oftentimes a newer plan with much lower premiums would provide them with similar, if not better, coverage.

Insurance companies quietly change drug plans almost every year. Old policies are discontinued and you can get automatically mapped into a much more expensive plan if you’re not paying attention. This sometimes results in higher premiums, larger deductibles, and higher copays on your prescriptions.

If you have an older Stand-Alone Part D Drug plan, then it’s wise to shop for new coverage during the Medicare Annual Election Period. This window runs from October 15th thru December 7th each year. It’s usually the only time you can make this change and save money.

6) Low Income Subsidies & Extra Help

There are several programs available from Federal and State Governments for those below certain income thresholds. The Federal Government will send notification if you qualify for Low Income Subsidy – or LIS for short. This program works on a sliding scale and can reduce your Medicare premiums and/or out of pocket expenses.

Others may qualify for Medicaid. This is a state run program and consumers typically need to apply as this enrollment may not happen automatically. If you’re not sure about eligibility standards, call your State Medicaid office to discuss and apply.

Outside of Medicaid, there are other state-run programs that help with pharmaceutical costs. It’s wise to investigate those as well as any discounts you might receive from the drug manufacturers themselves. This information isn’t always volunteered, so you’ll need to inquire and apply. When and where provided, these programs can reduce costs significantly for those who qualify.

Contact Us For No Obligation & No Cost Insurance Assistance

The bottom line: The worst thing you can do is nothing. There are several no-cost and low premium plans that will reduce the gaps in your Medicare coverage. If you do nothing, you’ll likely be on the hook for much larger bills than if you had chosen one or more of the options above.

If you’re not sure which route might be best for you, contact us today. There is not cost whatsoever to use our services for guidance, advice and enrollment.

Category: Medicare Advantage, Medicare Supplements, Retirement Planning

medicare card The 2020 Medicare open enrollment period is fast approaching. It runs from October 15th through December 7th – plan changes will not be effective until January 2021. Our agents are busy training so we can discuss important new plan benefits, costs and features.

In insurance speak, this period of time is also referred to as the Annual Election Period or AEP for short. It is the one time during the year when certain insurance changes can be made for Medicare beneficiaries.

Allowable Insurance Changes During AEP

There are several changes Medicare beneficiaries can make during the 2020 Medicare open enrollment window:

Changing Medicare Advantage Plans
Enrolling in a new Prescription Part D Drug Plan
Leaving Medicare Advantage to rejoin Original Medicare
Leaving Original Medicare to join a Medicare Advantage Plan
Shopping for less expensive Medicare Supplement coverage

If this if your first AEP, it may seem confusing, but if you’re happy with your current insurance coverage, there is nothing that you need to do. The list above is only stating your options.

The most important advice to keep in mind is following the rules. Enrolling in some plans will make you ineligible for others. Missing certain dates can also have consequences. It is a good idea to work with a knowledgeable agent or agency (like ours) if you are considering any of the above. There is no cost to do so.

Switching Medicare Advantage Coverage During AEP

If you are already enrolled in Medicare Advantage Prescription Drug (MAPD) coverage, you can shop for and enroll in similar coverage with another (or the same) carrier if you find a plan that better meets your needs. Sometime plans change year over year and there are plans that reduce your premiums and/or out of pocket exposure. Other times a new plan might offer a better network of doctors and hospitals.

We can help you compare plans starting October 1st, but enrollment must take place between Oct. 15th and Dec. 7th. Your new coverage will become effective as of January 1st 2021.

It is important to learn all the details of any new coverage you might be considering. Medicare Advantage plans can differ quite a bit. That is to say a PFFS plan will differ from a HMO, PPO or Medical Savings Account. And you’ll also want to ask how any changes will affect your prescription drug coverage.

And some plans offer new benefits like a free gym membership, rides to your healthcare provider, meals during recovery periods and/or dental and vision insurance. There’s a lot to compare

Purchasing A New Prescription Part D Plan

Your options for changing Part D coverage may differ depending on whether you are enrolled in a Medicare Advantage or Medicare Supplement plan. Some Advantage plans offer drug coverage and some do not.

If you are considering changing your Part D coverage, you will want to make sure it does not affect any MA (Medicare Advantage) plan you are considering. Enrolling in a stand-alone Part D plan can automatically dis-enroll you from some MA plans!

By rule, all Medicare supplements sold today do not offer drug coverage. Typically, prescription Part D policies are offered on a stand-alone basis. They are separate from traditional Medicare supplements life Plans F, G, and N. Changing to a new Part D plan will have no effect on your Medicare Supplement plan.

Finally, there can be penalties for those who enroll late in Part D drug coverage. If you’re not sure about how enrollment deadlines personally affect you, then contact us.

Leaving Or Joining Original Medicare A & B

During the 2020 Medicare AEP open enrollment window, you can leave original FFS (Fee for Service) Medicare to join a Medicare Advantage plan.

You can also plan leave your MA plan to rejoin FFS Medicare A & B and purchase a stand alone Part D plan.

Either change will become effective January 1, 2021.

There are several reasons you might consider making either of these changes and each decision has its own ramifications. This is not to say one is better than the other, rather that it’s important to know how these changes affect your ability to enroll in other types of Medicare insurance.

The ins and outs of the two scenarios above can be somewhat complex. If you are considering either for the first time, please make sure you understand how that might affect your ability to make changes the following year. It’s best to talk with someone who does this on a daily basis. It’s easy to make mistakes.

Shopping For A New Medicare Supplement Plan

If you are currently enrolled in a traditional Medicare supplement insurance plan and shopping for lower rates, then the 2020 Medicare open enrollment window will have little bearing on your options.

In most states, you can change Medicare supplements any time you wish. The process will be the same as insurance companies will require some amount of medical underwriting to prove you are insurable.

In some states (like MO and CA) there are specific, individual yearly anniversary periods when you can switch Medicare supplement insurance coverage without medical underwriting. These states are the exceptions to the rule. Most times, you must pass medical underwriting to switch to a plan with lower premiums.

The Annual Election Period does not provide you with a window to purchase a new Medicare supplement without medical underwriting. And this is the time of year when Medicare supplement prices are typically going up for the next year. Thus, it can be advantageous to shop for and change your supplemental coverage before the fall season when possible.

2020 Medicare Open Enrollment Assistance

Hyers and Associates is an independent insurance agency specializing in Medicare insurance policies of all kinds. We work in several states and are licensed with many, many insurance companies.

If you are unsure of your options during the 2020 Medicare open enrollment window, then contact us. We will be happy to help you compare plans and advise you on your options.

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Category: Medicare Advantage, Medicare Supplements

Annuity Death Benefits Annuities serve many purposes, but you might want one to safely and efficiently transfer assets to your heirs. One popular annuity feature offers an increasing death benefit in order to guarantee growth each year.

This rider might be appropriate for someone who does not anticipate needing their funds. Perhaps they have ample liquidity and investments elsewhere. The annuity would only be accessed in an emergency, but would otherwise grow and increase in value.

Understanding Annuity Death Benefits

First, it’s important to understand almost all annuities offer a death benefit of some kind. Usually it’s the accumulated contract value – and usually surrender penalties are waived at death. That’s not the case 100% of the time, however. It’s a good idea to ask your agent just in case.

But in this low interest rate environment, some companies offer a rider that allows your death benefit to grow each year. Your account can grow for 10-15 years with some contracts. The growth would be locked in for the life of the rider. For example, one popular annuity policy is offering a 7% simple interest increase that’s guaranteed for 15 years.

This is a very smart way to lock-in growth and pass wealth to your beneficiaries. You’ll always know the value of your account and you don’t have to worry about market fluctuations.

Who Might Benefit From Guaranteed Annuity Growth?

With an account like this, it’s best to set it and forget it. You may not want to take regular withdrawals unless it’s absolutely necessary. That’s not to say you can’t, but any withdrawals would reduce your death benefit. That could defeat the purpose of the rider.

Thus, this policy might not work well for an IRA account. Why? Because IRAs have Required Minimum Distributions as you get older. Those forced withdrawals would decrease the death benefit.

It’s better to use post-tax money to fund this type of annuity. These are called non-qualified annuities. You are never forced to take any withdrawals from a non-qualified account.

Our clients who are most interested in this strategy usually already own a non-qualified annuity. In many cases, their existing contract hasn’t performed very well or it’s settled in at a low rate. They usually haven’t touched the investment – and don’t anticipate any regular withdrawals.

In this case, we would set up a 1035 tax-free exchange and transfer the old annuity to this new one. Any gains in the old annuity are deferred and no taxes are due. The account then rolls up at the established rate for the term of the rider.

Let’s take a look at an example using a $200K deposit with a 72 year old client.

Guaranteed Death Benefit:

Age	Interest Credits	Contract Value	Death Benefit Increase	Death Benefit
72	$0	$199,000	7.00%	$214,000
73	$0	$197,930	7.00%	$228,000
74	$0	$196,790	7.00%	$242,000
75	$0	$195,580	7.00%	$256,000
76	$0	$194,300	7.00%	$270,000
77	$0	$192,950	7.00%	$284,000
78	$0	$191,530	7.00%	$298,000
79	$0	$190,040	7.00%	$312,000
80	$0	$188,480	7.00%	$326,000
81	$0	$186,850	7.00%	$340,000
82	$0	$185,150	7.00%	$354,000
83	$0	$183,380	7.00%	$368,000
84	$0	$181,540	7.00%	$382,000
85	$0	$179,630	7.00%	$396,000
86	$0	$177,650	7.00%	$410,000
87	$0	$175,600	0.00%	$410,000
88	$0	$173,550	0.00%	$410,000
89	$0	$171,500	0.00%	$410,000
90	$0	$169,450	0.00%	$410,000
91	$0	$167,400	0.00%	$410,000

Non-Guaranteed Death Benefit:

Age	Interest Credits	Contract Value	Death Benefit Increase	Death Benefit
72	$0	$199,000	7.00%	$214,000
73	$40,802	$238,732	7.00%	$238,732
74	$0	$237,592	7.00%	$242,000
75	$48,860	$285,242	7.00%	$285,242
76	$0	$283,962	7.00%	$283,962
77	$0	$282,612	7.00%	$282,612
78	$0	$281,192	7.00%	$281,192
79	$62,077	$341,780	7.00%	$341,780
80	$0	$340,220	7.00%	$340,220
81	$17,425	$356,015	7.00%	$356,015
82	$0	$354,315	7.00%	$354,315
83	$72,675	$425,220	7.00%	$425,220
84	$0	$423,380	7.00%	$423,380
85	$87,118	$508,588	7.00%	$508,588
86	$0	$506,608	7.00%	$506,608
87	$0	$504,558	0%	$504,558
88	$0	$502,508	0%	$502,508
89	$111,072	$611,530	0%	$611,530
90	$0	$609,480	0%	$609,480
91	$31,260	$638,690	0%	$638,690

Outperforming The Guaranteed Value

In the above example, we used a $200K deposit for a 72 year old client and assumed no withdrawals. The annuity death benefit increases at a 7.00% simple interest rate guaranteed for 15 years. As of the writing of this post, these are real numbers with an existing product. None of this is made up.

You can see each year how the value of the death benefit increases. Should the owner pass away in any given year, the full listed death benefit would pass to their beneficiaries. After 15 years, you can see the annuity death benefit would be worth $410,000 on a guaranteed basis.

But this does not tell the whole story. There are guaranteed and non-guaranteed values at work here. The $410,000 assumes zero growth in the underlying investments in the annuity. In other words, this is the worst case scenario… and a highly unlikely outcome.

This particular indexed annuity offers several investment options. We used historically accurate data to show how the death benefit would increase assuming normal growth in a popular 2 year indexing account.

After 15 years the annuity death benefit (and contract value) would be worth much more. Assuming modest historical returns in the future, the death benefit would be over $500,000. But no matter what happens, the $410,000 is always guaranteed.

You always have the guarantees to fall back on, but if the annuity performs even reasonably well, your death benefit (and contract value) will be more than the guaranteed amounts. There is little risk in investing more aggressively. Most of our clients want to maximize growth using the indexing options available to them.

What Is The Cost? What About Taxes?

This particular death benefit rider has a .50% yearly cost to the policy. If you look at the contract values in the above example, you can see they decrease each year by 50 basis points. This fee does not decrease your guaranteed death benefit, however.

It’s important to note that this is not a life insurance policy. This means, yes, taxes are do on the gains when they are withdrawn. That occurs when the owner passes away.

Only life insurance passes income tax free to your beneficiaries. That’s why fixed and single premium life insurance policies are popular as a wealth transfer strategy. But not everyone can qualify health-wise for life insurance. An annuity policy like this one asks no health questions and has no medical underwriting.

At passing, your heirs (or the estate) would pay any income taxes due on the growth… same as all other annuities. So it’s only tax-deferred, but not tax-free. But that’s no reason not to try and grow the account as much as possible. Your beneficiaries might choose to withdraw the funds over 5 years to help reduce any income taxes owed.

Request Illustrations & Information

There’s a lot of creative ways to efficiently grow your money and transfer it to your loved ones. You could also use this to provide for a favorite charity. At Hyers and Associates, we specialize in annuity and life policies for wealth creation, tax mitigation, and asset transfer.

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Category: Annuities, Retirement Planning

Which Medicare Insurance Is Best? Currently, there are approximately 66 million Americans enrolled in Medicare. And that number is climbing daily.

Medicare is a government-backed health insurance program helping those 65 and older afford health care. However, it does not cover all of your expenses.

You’ll usually want to supplement your coverage. Unless you have group, retirement coverage, or VA Benefits, this means you’ll want to compare Medicare Supplements to Medicare Advantage plans.

The Case For Medicare Advantage Plans

Medicare Advantage is one way to round out your Medicare benefits. Medicare Advantage insurance is private, but includes coverage for Vision Insurance, Dental Insurance, Hearing Insurance, and qualified Wellness Programs, such as Silver Sneakers.

They can also cover expenses such as transportation to doctor’s visits, over-the-counter medications, and adult daycare services. These policies can even be found for $0 a month. They are affordable and help close many gaps for seniors.

However, there can be network restrictions as these plans are usually HMOs and PPOs. And your out-of-pocket exposure can be higher for hospital stays and other medical expenses.

The Case For Medicare Supplement Insurance

Medicare Supplements, or Medigap, are another great way to help you pay for out-of-pocket expenses not covered by Medicare, such as deductibles, copayments, and coinsurance.

There are 10 different plan options, the most popular of which are Plans F, G, and N. All three offer the most comprehensive coverage.

There are no networks to worry about. You can see any doctor or hospital that accepts Medicare. And you have very little out-of-pocket exposure with most Medicare Supplement policies. There will be less to pay when you go to the doctor or require hospitalization.

Which Coverage Should I Choose?

While you may say, “that’s great, I’ll take both!”, unfortunately, you are only eligible to choose one or the other.

Because of that, one question that may better serve you is, “What’s the cost difference between Medicare Advantage and Medigap?”

Medicare Advantage plans usually have lower premiums, but may not have as broad of coverage. This results in more out-of-pocket expenses.
Medigap offers more expansive coverage across the United States, as well as more flexibility with out-of-network physicians. Medigap makes it very easy to file a claim, but often has higher premiums.

However, Medicare Advantage policies offer prescription drug coverage with most plans, where Medigap users must purchase separate Stand Alone Part D coverage.

Contact Us With Questions

Which is better? The answer is not the same for everyone. Some may benefit more from a Supplement while others save money with an Advantage plan.

One size does not fit all. A lot depends on your utilization and overall health. And you’ll want to know how your decision today affects your options for change tomorrow. There’s a lot to know!

Hyers & Associates can help you work through the options. Call or request a no-cost, virtual appointment today!

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Category: Medicare Advantage, Medicare Supplements

Medicare Plans K & L When researching Medigap policies, you may want more information on Medicare Supplement Plans K & L. These two unique options are less popular than traditional policies like G & N, but they do offer value.

They might be right for some, but not all consumers. It’s important to understand what you can expect from these two cost-sharing plans should you enroll.

You may have more out of pocket, but premiums are less. We’ll compare Plan K & L to traditional Plans like F, G & N.

Supplement Plans K & L: More Cost Sharing

Aside from Plan F, every Medicare supplement sold today has some amount of cost sharing for the insured. This means you will likely have some amount to pay if you go to the doctor or hospital. It can be a copay with Plan N – or a small deductible with Plan G.

Of all the plans sold, Plans K and L have the most cost sharing. This means you are responsible for more of the bill. When you look at the abbreviated Medicare Supplement coverage chart below, you see there are a couple of gaps plans K & L don’t cover – and some only covered at a certain percentage. This leaves an out of pocket maximum for the insured each year.

Supplement Plan:	F	G	K	L	N*
Part A Hospital Coinsurance
Lifetime Reserve
365 Hospital Days
Parts A and B Blood			50%	75%
Part B Coinsurance			50%	75%
Hospice Coverage			50%	75%
Skilled Nursing			50%	75%
Part A Deductible			50%	75%
Part B Deductible
Part B Excess
Foreign Travel Emergency
Preventive Care
2024 Out of Pocket	$0	$240	$7,060	$3,530	N/A

Key: The ✔ means the benefit is covered by the supplement. For example, Plans F, G & N cover Foreign Travel Emergency, but Plans K & L do not.

*With Plan N, you have $20 office and $50 ER copays.

Understanding The Medicare Supplement Gaps

Looking at the chart, you see plans K & L do not cover the Part B Deductible or Part B Excess Charges. In this way, they are similar to popular supplemental plans G and N.

Then there are five highlighted gaps that Plan K covers at 50% and Plan L covers at 75% respectively. This is what sets these two Medigap plans apart from the rest. By only covering a percentage of each gap, they leave behind more cost sharing for the insured.

For any given year, there is a maximum out of pocket for each policy. You can see those amounts in the chart above. This is your maximum exposure should you reach it through doctor’s visits and/or hospital expenses. Put another way, this is the amount you would pay after Medicare and your chosen supplement pay their parts.

(It’s difficult to determine the out of pocket maximum for Plan N even though it’s a comprehensive plan. Copays and Excess charges are different for everyone.)

Do Plans K & L Offer Good Value Overall?

When it comes to Medicare Supplement Insurance, you want to balance premiums and benefits. Simply stated, some policies do not provide great value. You might be paying for benefits you won’t use – or paying higher premiums than needed to fill small gaps.

Monthly premiums for supplements differ widely and depend on several factors. But in our experience, premiums for Plans K and L are not extremely compelling based on their out of pocket exposure. One reason is these two plans are not extremely popular. Without competition amongst insurers, rates remain higher.

A fair comparison might be with High Deductible Plan G. This option has roughly $2,400 in out of pocket exposure. But this plan can be found for under $50 a month across the country. Both Plans K and L have more out of pocket and usually come with higher monthly premiums. It should be noted that Plans K and L begin paying before High Deductible plans do, however.

Our advice: Shop wisely and with agent assistance.

Understanding Your Medigap Options

There is a lot of nuance when it comes to Medicare supplements. It’s not a one size fits all proposition. You might be surprised how much there is to know

It’s smart to work with an independent broker. Not only do we provide needed insight, but you don’t pay a penny more for our services. Contact us today to review quotes and strategies.

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Category: Medicare Supplements

United Healthcare offers affordable short term health insurance rates across the country. Individual and family policies are offered through their subsidiaries Golden Rule and Pacificare.

Group coverage is offered through United Healthcare and collectively they are all now known as United HealthOne. UHC is well known for their large network of doctors & hospitals as well as their ancillary coverage options.

Short term coverage is one of their most popular options, but they also offer accident, illness, indemnity, term life, teledoc services, and UHC dental and vision coverage as well.

Golden Rule Health Insurance Coverage

Individual & Family Plans
Short Term Health Insurance
Accident & Illness Plans
Dental and Vision Coverage
Term Life Insurance

Recently UHC added several new benefit options to their individual and family plans including preventive care, dental & vision coverage, term life, accident coverage, wellness visits, as well as additional deductible and coinsurance choices.

While UHC is not as actively involved with ACA plans, their short-term policies are thriving. One reason is cost. These policies can cost up to half as much as a non-subsidized ACA plan on the Federal Marketplace. For younger, healthier consumers plans can be found for under $100 a month!

United Healthcare Short Term Health Insurance

Consumers want catastrophic health insurance plans with low premiums. UHC short term plans fit that bill. There are several deductibles to choose from with and without coinsurance.

Deductibles will range from $2,500 – $12,500 in most areas and different coinsurance options. Most common are 80/20 plans. Depending on the rules in your state, plans can be purchased to cover just a few months – or up to three years. This means no medical underwriting is necessary for three years – the plan automatically renews.

Most plans carry a lifetime maximum of $2 million per insured person. And most importantly, all plans are PPOs. This means you can see doctors in and out of their very large network. One drawback to ACA plans is most are HMOs with smaller networks. This is not the case with United Healthcare short term PPO policies.

Office Copays, Prescriptions & Medical Underwriting

It’s important to know that short term plans are not the best option for everyone. They don’t always offer some of the same benefits as ACA plans. For instance, you might only get one or two office copays with some policies. And they won’t cover preventive care at no cost like most ACA policies.

Prescriptions are another concern. Most short term plans will cover Tier I & II generic prescriptions, but not the more expensive, higher Tier ones. If you are on one or more expensive prescriptions, you might be better off with an ACA policy.

And short term policies from United Healthcare require medical underwriting. This means you can be turned down for coverage due to ongoing or past health issues. ACA plans don’t do that. And even if you are accepted, preexisting conditions might not be covered. These would be conditions you’ve been treated for recently.

Competitive Niche For UHC Insurance Plans

UHC policies are competitive in many age groups for individual, families and groups. Our clients enjoy their large nationwide network and affordable rates.

In summary, United Healthcare offers several affordable plans with different coinsurance and deductible options. Affordability, network strength, and underwriting options are their most attractive features. As with all insurance, it is important to read the brochure and/or policy provisions for possible exclusions. Contact us to learn more.

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Category: Health Insurance

Cigna Dental Insurance Cigna offers several dental, vision and hearing insurance plans to choose from. Some are geared toward dental only. Others are more comprehensive and cover dental, vision and hearing.

All are PPO policies that allow you to use any of their 93,000 network providers. Additionally, those who previously had dental coverage can avoid waiting periods on most services. Click the “Get Quotes” box on the right sidebar to compare plans and enroll today.

Cleanings, Basic and Major Services

There are several plans to choose from in most areas. All policies cover preventive dental care like cleanings, x-rays, and fluoride treatment. The others cover Basic and Major Services as well. Policy maximums range from $1,000 to $5,000 per year in most areas.

Depending on your needs, you can find coverage that best suits your budget and service requirements. For instance, some plans cover orthodontia while other cover implants.

Preventive & Diagnostic Coverage: Oral exams, routine cleanings, x-rays, sealants, fluoride treatment, space maintainers
Class II and III Coverage: Periodontics, x-rays, crowns, root canals, tooth extraction, dentures, partials, bridges
Class IV: Orthodontics, braces, dental implants

Who Is Eligible For Dental Coverage?

Anyone can purchase a Cigna dental plan! Coverage is available for children only, individuals, families and for those over age 65. Please contact us if you’re interested in a group employer based plan.

A 15% discount on monthly premiums is available when additional family members are added to a plan. There are no application or processing fees. You are enrolling direct. No referrals are needed to see a specialist and there are nearly 309,000 offices across the country accepting this coverage.

What About Vision and Hearing Insurance?

Fortunately, Cigna has you covered there as well. Several plans also include vision coverage and hearing benefits as well. You can mix and match benefits to find the best plan for your needs.

The coverage level selected will determine your costs for eye exams and allowance for lenses, contacts and frames. Plans offer up to $400 per year combined for all.

When hearing benefits are added, you can expect a small copay for an exam and $500-$1,000 per year for hearing aids.

Are There Waiting Periods?

When you purchase a Cigna dental plan, coverage will begin on the first of the next month. For Example: A plan purchased on June 15th would be effective July 1.

If you’ve had dental insurance for 12 consecutive months prior to enrolling, any waiting periods will be waived for basic and major services. This is a great benefit for those who might be retiring and losing group employer coverage.

For all others, there are no waiting periods for basic cleanings. However, there will be a 6 month waiting period for Basic Services (like cavities) and a 12 month waiting period for Major Services (like crowns and root canals). And there is always a 12 month waiting period for orthodontia.

Dental, Vision & Hearing For Those On Medicare?

You probably know that most Medicare supplement insurance plans do not cover dental, vision and hearing insurance. Some Medicare Advantage plans offer these benefits, but not traditional supplements. Cigna insurance policies are available on a stand-alone basis to those who are on Medicare and don’t have ancillary benefits elsewhere.

If you’ve recently retired and lost a coverage through a group employer plan, then you can avoid any waiting periods. This is a great feature and it’s somewhat unique to Cigna. Most other insurance companies will make you satisfy their waiting periods even if you have no gap in coverage.

Contact Us

If you’re not sure which Cigna Dental, Vision & Hearing plan is best for you, then please contact us with your questions. We will walk you through your options and help with a direct enrollment.

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Category: Dental & Vision Insurance

If you are looking for affordable health care options, short-term health insurance may be right for you. At Hyers and Associates, we educate our clients about all of their options. Here is what you need to know about this type of insurance.

Short Term Health Insurance Has Changed

Major changes have occurred regarding the availability of short-term health insurance. Until recently, these plans could only be used for a 3 month time period. Now they can be used for much longer.

Now you can purchase a policy that lasts anywhere from 6 months to 3 years depending on the rules in your state. Policies that automatically renew for multiple years eliminate the need for future medical underwriting and possible declines.

The Pros

These policies are designed to cover people that are transitioning from one long-term health plan to another. Usually, they are purchased by young, healthy adults. These individuals cannot or prefer not to purchase more comprehensive insurance through the Affordable Care Act.

Usually they cost less, are available any time of the year, and do not have a limited enrollment period. Most doctors and health care providers will accept the short-term PPO policies.

Also, the policies would typically cover an unexpected surgery or hospital stay. However, there are some situations they frequently will not cover. Your eligibility for a short-term policy is not guaranteed. Your age and health condition are taken into consideration when your application is medically underwritten.

The Cons

There are several factors to consider. For starters the subsidies that are offered by the Affordable Care Act’s comprehensive insurance providers are not offered on these policies. There are no tax credits available with short term health plans.

These do not cover:

Most preventive care visits
Pre-existing conditions
Maternity care or pregnancies
Expensive prescriptions

And you cannot always renew your policy at the at the end of your chosen term. If your health has changed, you might not qualify. It’s best to have your short term policy end during the Annual Open Enrollment Window. That way you can purchase an ACA plan if you don’t medically qualify for another short term health policy.

Your acceptance is not guaranteed; medical underwriting is required. Major medical insurance might still be your best option depending on your needs.

You’re In Control of Your Insurance Choice

The recent Affordable Care Act changes give you the opportunity to have more control over your coverage. You can decide how much you are willing to spend to get it.

Here are a few questions to consider before buying short term insurance:

How long do you want your policy coverage?
What kind of deductibles and coinsurance are you willing to pay?
What kind of risks are you willing to take?

The new plans are customizable to meet many needs. It can give you some comfort in knowing that if the unexpected happens, you won’t have to cover it 100% out of pocket. So, today you have a lot more control over the insurance you want. It’s also important to note that you decide how much you want to pay for that insurance.

Many of our clients also purchase Accident, Illness and Hospitalization policies along with short (and long term) health policies. These ancillary plans are inexpensive and can bridge the gap when you have large deductible and coinsurance out of pocket exposure.

The Tax Penalty Was Lifted

The other good news is that in previous years the Affordable Care Act assessed a tax penalty to anyone that did not have comprehensive medical insurance. Recent changes have changed that.

As of 2020, there are no longer penalties for not enrolling in an ACA policy. This could change in the future, but it short term plans that last all or most of the year a feasible option for many.

We Can Help You

How do you decide what is the best route for you to take? Get in touch with Hyers & Associates. We can help you sort through the options of what is available and affordable for you. We’ll take the time to answer your questions and point you in the right direction.

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Category: Health Insurance

Tags: short-term health insurance

invest annuities With increasing interest rates, you may want to know how your business can invest in an annuity account. In most cases corporations, partnerships, trusts, and other entities can own an annuity. This process works much like it would with individual ownership.

That’s the good news, but there are subtle differences in how these accounts operate on a tax and operational basis. You’ll want to understand what to expect from this structural change to avoid issues later.

First There Must Be An Annuitant

Annuity accounts are annuitant-driven. This means even though a trust, partnership, or corporation can own an annuity, the investment must be based on a living person. The same is true with life insurance. Entities can own a life insurance policy, but it’s still based on someone’s life.

So there must always be an annuitant. While this person(s) may not own the policy outright, the contract is based on their life. In other words, the owner (corporation, trust, etc.) and the insured (person) are different.

Once the last annuitant passes away (some policies have joint annuitants), then the policy would end based on the contract terms.

A corporation, trust, or other entity cannot continue contracts indefinitely. There must be a living annuitant listed on the policy. Once one or both annuitants pass away, you cannot appoint a new insured. The policy would end at that time.

An entity can own an annuity contract so long as it’s based on a living person listed as the annuitant(s). This person might be an owner, president, or officer of the company.

Annuities Have Unique Tax Features

Annuities grow tax-deferred. Owners can defer taxes for their lifetime if they wish. The annuitant (or the annuitant’s estate) pays the taxes on that growth at passing. This setup takes advantage of compounding interest.

The taxation of annuities works differently when owned by an entity. A trust, partnership, business, or corporation that owns an annuity cannot defer taxes like a natural person.

View Current Fixed Annuity Rates

All corporately owned annuity accounts are non-qualified. If the owner was a person, then yes, taxes can be deferred. However, IRS rules state when a business entity owns an annuity, it would be subject to normal yearly income taxes based on the policy gains. The tax ID of the corporation, partnership, etc. would receive the 1099 each year.

One advantage of annuities is tax-deferral. This feature is lost if a non-person is listed as the owner. When interest rates are high, however, investment growth might outweigh tax-deferral.

How Do Annuities Work With Trusts?

Most trusts are revocable and simply set up to avoid probate. Annuity accounts avoid probate by way of beneficiary designations. Thus, you may have a couple of choices on how to establish ownership.

Some consumers make their trust the owner of the annuity while others will make their trust the beneficiary. Your best way forward may depend on the type of trust you have and how your wish to bequeath the proceeds.

When working with trusts, it’s best to talk with your lawyer and tax advisor to confirm you’re taking advantage of all the benefits annuities offer. In some cases, you and/or your beneficiaries will unnecessarily lose tax advantages if your annuity is established improperly.

Are These Contracts Safe & Insured?

Other than tax implications, most other annuity features are the same when owned by an entity. Contracts are insured for up to $250,000 in most states. You’ll want to refer to your State Life & Health Guaranty Association to view their rules and requirements.

Distributions, liquidity, income withdrawals, and surrender charges would all be the same as listed in the contract.

Some annuities carry more risk than others. Variable accounts buy into the market and go up… and down. Fixed, indexed and deferred accounts do not own market instruments and do not lose value when the market drops.

Your best options depend on your risk tolerance. Most of our clients look for the reliable returns of indexed and fixed annuity quotes. We can help you compare your best options.

Contact Us To Learn More

Hyers and Associates is an independent insurance brokerage. We offer policies from several highly-rated companies. We’ll help you find the corporate annuity account that best suits your needs and risk tolerance.

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Category: Annuities, Retirement Planning

Now that you are ready to retire, it means more free time – and sometimes, less income. And with a reduced income, there are thoughts of ways to save money. After all, you also want more discretionary income to enjoy your free time. Is ending your life insurance policy – or never investing in one at all – the solution? Find out why many people decide to carry life insurance in retirement and well into their golden years.

Retirees With an Income

Some retirees stop working altogether. Others might have a limited or a small pension, which means finding part-time or full-time employment in another field. In most instances, seniors work fewer hours and find jobs with fewer demands. But working seniors usually need an income. And sometimes others depend on the money they earn, including spouses, children, and grandchildren. In this instance, it is prudent to have a life insurance policy to continue to supplement that income when you are gone.

Leaving a Secure Legacy Behind

After decades of hard work, you are comfortable enough kick back during your older years. But you still might not have enough to leave a legacy behind for your loved ones. Saving might be needed for basic living expenses and funeral expenses in the event of your death. And you want to leave something extra for the people you care about.

One of the best ways to do it in investing in a life insurance policy. In most cases, life policies pay out tax-free to your beneficiaries. And you can establish a single premium life insurance policy – or one that requires a set number of known premiums. This way you know exactly what your cost will be.

Paying for Funeral Expenses & Burial Costs

Perhaps nobody continues to depend on you for income. Your spouse might be deceased, and your children are independent. Or you might be on your own. Either way, there will be expenses for your funeral. If you have certain religious beliefs or personal preferences, you might want specific arrangements made for your funeral.

A funeral expense life insurance policy can pay for them to ensure your final wishes are met. Most of our clients think a burial policy is the smart way to go. Instead of a pre-paid plan with a company that might be out of business in the future, you can be in control of the proceeds.

Taking Care of Children Later in Life

People who had children later in life need to consider their well-being and future. Even if your children are in their late teens, there will be expenses for college, transportation, and weddings. If you pass prematurely, these costs could become overwhelming as they need to funds to start their journey forward. You can help take care of them well into the future by continuing to carry life insurance.

This might be done with a shorter term life policy – or a universal life plan. These may expire before they are ever needed, but you know your financial bases are covered if the unexpected occurs.

Family Members With Special Needs

Anyone who takes care of a child, spouse or family member with special needs recognizes there are ongoing expenses for care and treatment. And if any complications arise, these costs can add up quickly. Having life insurance helps take care of a special needs family member long after you can’t. Life insurance gives them the quality of life they deserve.

Owner of a Small Business

Many retirees continue to own all or part of a small business. Some are silent partners while others continue to provide their ongoing expertise in the background. If business partners still rely on your specialized skills and knowledge, it is essential to ensure operations continue as usual after your death. Investing in a business continuation life insurance policy (or key man coverage) helps your successors move forward with less interruption.

Consult with our independent agency to find out whether you need to pay for life insurance in retirement. You might find the expense is necessary to protect the interests of the people you care about most.

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We are an independent life insurance broker in Columbus, Ohio. Contact us to discuss your options for Medicare insurance and life insurance planning today.

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Category: Life Insurance

Medicare IRMAA Fees If you are approaching your Medicare eligibility, you should be aware of the Medicare Income-Related Monthly Adjustment Amount – IRMAA for short. It applies to higher income earners and results in increased Part B and Part D premiums.

These increases might affect your decision to stay on your employer policy. If that’s not an option, then you may pay more for your Medicare premiums until your income decreases. View the charts below and read more to see what you can expect from your Medicare premiums in 2020.

How Does IRMAA Affect Part B Premiums?

This means-tested program operates on a sliding scale and is based on your income from two years ago. Even if your income was lower last year, your Part B premiums will be higher until you have two years of lower income behind you. You can expect to pay the adjusted amount so long as your income is above certain thresholds. The amount you pay is based on whether you file single or jointly.

The table below illustrates the Part B premiums for those with certain income levels. These amounts can, and usually do, change each year based on inflation metrics.

Individual Filers	Joint Filers	Married - File Separately	Your 2024 Monthly Premiums
AGI Less Than Or Equal To $103,000	AGI Less Than Or Equal To $206,000	AGI Less Than Or Equal To $103,000	$174.70
AGI Greater Than $103,000 And Less Than Or Equal To $129,000	AGI Greater Than $206,000 And Less Than or Equal To $258,000	N/A	$244.60
AGI Greater Than $129,000 And Less Than Or Equal To $161,000	AGI Greater Than $258,000 And Less Than or Equal To $322,000	N/A	$349.40
AGI Greater Than $161,000 And Less Than Or Equal To $193,000	AGI Greater Than $322,000 And Less Than or Equal To $386,000	N/A	$454.20
AGI Greater Than $193,000 And Less Than Or Equal To $500,000	AGI Greater Than $386,000 And Less Than or Equal To $750,000	AGI Greater Than $103,000 And Less Than or Equal To $397,000	$559.00
AGI Greater Than $500,000	AGI Greater Than $750,000	AGI Greater Than $397,000	$594.00

Part B is a cornerstone of Medicare. You should only defer Part B enrollment if you have qualifying group coverage (more than 20 employees) through your employer. If not, then it’s wise to begin Part B along with your Part A. For most, that happens at age 65, but there are circumstances when it can begin before or after age 65.

The IRMAA fee is not assessed by insurance companies, but rather the government itself. You pay them. The government will send you a letter as you approach Medicare eligibility stating what your IRMAA costs will be. The only way to avoid IRMAA is by not enrolling in Part B.

That’s not usually an option unless you have creditable group health insurance through work or retirement. If you don’t enroll in Part B when you’re supposed to, you’ll be assessed a late enrollment penalty for life.

(It should be noted there are no IRMAA fees for Part A. This program is free for most as it is earned through work credits or via spousal benefits.)

IRMAA Costs & Medicare Part D Drug Premiums

The second (and only other piece) subject to Medicare IRMAA increases are your Medicare Part D Drug plan premiums. Most consumers opt for a drug plan in order to reduce their prescription costs.

Whether you enroll in a Stand Alone Part D Drug plan or one that is part of a Medicare advantage plan, IRMAA can increase your monthly premiums. Here are the amounts:

Individual Filers	Joint Filers	Married - File Separately	Additional Monthly Amount Owed
AGI Less Than Or Equal To $103,000	AGI Less Than Or Equal To $206,000	AGI Less Than Or Equal To $103,000	$0.00
AGI Greater Than $103,000 And Less Than Or Equal To $129,000	AGI Greater Than $206,000 And Less Than or Equal To $258,000	N/A	$12.90
AGI Greater Than $129,000 And Less Than Or Equal To $161,000	AGI Greater Than $258,000 And Less Than or Equal To $322,000	N/A	$33.30
AGI Greater Than $161,000 And Less Than Or Equal To $193,000	AGI Greater Than $322,000 And Less Than or Equal To $386,000	N/A	$53.80
AGI Greater Than $193,000 And Less Than Or Equal To $500,000	AGI Greater Than $386,000 And Less Than or Equal To $750,000	AGI Greater Than $103,000 And Less Than or Equal To $397,000	$74.20
AGI Greater Than $500,000	AGI Greater Than $750,000	AGI Greater Than $397,000	$81.00

While it’s not mandatory to enroll in a drug plan, late enrollment penalties apply here as well. So if/when you do enroll later, Medicare will assess lifetime penalties – just like with Part B premiums.

Even if you don’t need drug coverage, it can be wise to purchase an inexpensive policy to stay compliant. These plans start around $13 a month in most areas of the country. The adjustments listed above would be in addition to the cost for your chosen plan. They are also collected by the government.

What About Medicare Advantage Plans?

Yes, IRMAA can affect the cost of your Medicare Advantage coverage. Many (not all) Medicare Advantage plans include a Part D prescription drug program. These are referred to as Medicare Advantage Prescription Drug plans – or MAPD for short. As mentioned above, it’s wise to have a Part D plan whether it’s on a stand-alone basis or one that’s part of an Advantage plan.

Even if you enroll in a $0 MAPD policy, you’ll still see the IRMAA charge tacked-on to the Part D piece of the policy. It’s unavoidable unless you enroll in a MA plan with no Part D coverage, but that could result in a lifetime of Part D penalties if you do enroll in one later.

Simply put, here are financial traps with Medicare. The government forces participation in order to avoid late enrollment penalties and coverage delays.

What I If I Still have Insurance Through Work?

Your ability to defer Medicare enrollment beyond age 65 depends on a couple of factors. To defer Part B, your employer group must be more than 20 employees. If not, the government says you must enroll in Part B. From there, you can work with a knowledgeable agent as to your next steps.

To defer Part D enrollment, you must have creditable drug coverage elsewhere. This could also be through work, a union, or even the Veterans Administration.

Many consumers are able to defer one or both programs until retirement beyond age 65. If you’re not sure, then it’s a good idea to ask a professional. We’ve seen many mistakes made with enrollment deadlines and requirements. Those can be costly now and/or in the future.

What About Medicare Supplement Premiums?

The short answer is they are not affected by IRMAA. If you choose to enroll in an Medicare supplement insurance plan, then there will be no IRMAA fees based on your income.

Several different factors will determine your Medicare supplement premiums, but income is not one of them. Medicare has a lot of gaps, so it’s wise to fill them.

And there is usually only one time (your personal 7 month open enrollment window) when you can purchase a Medicare Supplement no questions asked. If you don’t take advantage of that opportunity, it might be difficult to qualify later due to medical underwriting qualifications.

Talk With An Independent Agent

Undoubtedly, Medicare can be confusing. There are many decisions to be made, but they must be made carefully. One wrong step at the wrong time can lead to delays, penalties and extra costs.

If you want to speak with a Medicare expert, contact us today and we’ll walk you through your options. Our independent agency specializes in Medicare enrollment and can guide you through the entire process.

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Category: Medicare Advantage, Medicare Part D, Medicare Supplements, Retirement Planning

Annuity Market Value Adjustment A commonly misunderstood and/or overlooked annuity feature is the Market Value Adjustment. This provision will influence the value of your account during its term. It can have a noticeable effect on the account should you surrender your annuity early.

And in some cases, it can help you exit an underperforming annuity with gains that wouldn’t otherwise be available. In this post, we’ll discuss what it is and why you should watch it carefully.

What Is A Market Value Adjustment?

Simply speaking, it’s an annuity provision that affects the value of your annuity during the surrender phase. It’s not a feature on all contracts. To understand it, we have to first understand the investments annuities typically hold.

There are a lot of rules and regulations governing insurance companies and the annuities they offer. Insurance companies are not lending institutions like banks. They have much higher reserve requirements and purchase investments accordingly.

Insurance companies purchase debt (think government treasuries and highly-rated corporate bonds) to fund their operations and provide products. The treasuries and bonds purchased are packaged into annuities and sold to consumers at a known rate.

Sometimes the rate is fixed like in the case of a Multi-Year Guaranteed Annuity – or MYGA for short. You might see 5% for 5 years, for instance. In other cases, the rate can and will fluctuate over the annuity term.

Insurance companies profit on spreads – the difference between what the debt pays them and what they offer to the consumer. If they are offering 5%, then we might expect the debt to be paying them 5.50%. The 50 basis points are the spread that provides profit.

Bonds Will Increase And Decrease In Value

Over the course of their maturity, government and corporate bonds will fluctuate in price. When interest rates go up, bond values go down. When rates decrease, the value of the bonds increases. The two move inversely.

And that’s why many insurance companies use the Market Value Adjustment as a hedge to protect themselves and their policyholders. An MVA is only used during the surrender phase of an annuity contract. If you surrender your contract before maturity, your account may be worth more or less than what you might anticipate. Most insurance companies document that value on your statements.

In an environment where rates have increased dramatically, the bonds the insurance company purchased previously would have less value. If many policyholders decided to surrender their contracts early, this would negatively impact an insurance company’s profitability. In fact, it could cause significant financial strain.

However, we are witnessing a moment in time when interest rates have been increasing quickly. This has caused bank failures and that’s concerning. Market Value Adjustments protect consumers and insurance companies during times like these. This makes annuities much safer if there’s a run on financial institutions.

How Does The MVA Help Annuities?

We know rates decrease when the Federal Reserve tries to stimulate the economy. This means bond (debt) prices increase. That can be advantageous for certain fixed and indexed annuities with a Market Value Adjustment.

The lower rates are causing the underlying investments behind annuities to increase in value. Thus, it might be a good time to examine your current annuity account value. It may be worth considerably more than you thought.

If it is worth more – and there are no significant surrender penalties – you could consider exiting the contract. You may be able to lock in a higher rate with another insurance company through a 1035 tax-free exchange.

Will A Market Value Adjustment Hurt My Annuity?

Of course, the MVA can decrease your account value when interest rates increase, but this is only true if you surrender your annuity before it reaches maturity. Once mature, the MVA no longer applies.

Most owners don’t surrender their contracts early unless they have no choice. Annuities are longer-term investments. Most policies provide liquidity to their owners in the way of yearly free withdrawals. Accumulated interest, ten percent annual, and Required Minimum Distribution, terminal illness, and/or catastrophic health withdrawals are features many accounts provide. These withdrawals would not be affected by an MVA.

And insurance companies are careful to account for the death of the owner. Market Value Adjustments do not apply at passing. However, not all annuities offer a death benefit that’s free from surrender fees. Be sure to ask your agent if you’re uncertain about death benefit provisions.

Contact Us For More Information

Annuities do have some moving parts – some more than others. If you do have a Market Value Adjustment on your contract, you want to know what it means. It can be a helpful feature in an environment where interest rates are falling.

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Category: Annuities

Insurance Options For Job Loss As of the writing of this post, there are a lot of disruptions in the economy due to the Coronavirus. Many consumers are losing jobs and some are having disruptions in their health insurance coverage.

If you’re losing your health insurance, you’ll want to know your options. We list the most common strategies below for obtaining permanent and transitional policies.

COBRA as an Initial Option

Electing COBRA is usually the path of least resistance if you’re losing group health insurance. How long your COBRA might last will depend on your group size, so you’ll want to ask your HR manager. For most, it’s 18 months. That buys you significant time.

Your insurance coverage will not change when you elect COBRA. However, you will pay the full price for your coverage plus a 2% surcharge. Your employer’s contributions toward your premiums will discontinue. You have 63 days to elect COBRA retroactively upon separation from employment. And there is no medical underwriting or waiting periods for preexisting conditions.

Medicare Insurance for Those Who Are Eligible

If you’re age 65 or older (or otherwise eligible for Medicare), then Medicare will become your primary insurance. You may need to enroll in Medicare Part B if you haven’t already. This process can be done online, over the phone, or at your local Social Security office if they are open.

Once you’re enrolled in Medicare Parts A & B, then you’ll want to work with an agent who specializes in supplemental policies. Medicare does not cover everything. It’s wise to fill in the gaps with either a Medicare Supplement policy and a Part D drug plan – or an all-in-one Medicare Advantage Prescription Drug plan.

There’s always a lot to unpack with Medicare. It’s somewhat complicated if you’re unfamiliar with how it works. And the choices you make now can affect your options to change down the road. Make sure to explore all of your options with a brokerage (like ours) so that you don’t miss any enrollment deadlines and incur any penalties.

Federal Marketplace Insurance (ACA – Obamacare)

If you’re under age 65 and COBRA is not a suitable or affordable option, then you can explore Affordable Care Act (Obamacare) plans. In most parts of the country these can be purchased on either the Federal Exchange or a state run exchange. You may not find the more common insurance companies you are used to. In some areas, there are only a small handful of plans to choose from.

You should talk to your family doctor about any ACA health insurance plans they might accept. You’ll also want to try and best figure your Modified Adjusted Gross Income (MAGI) for the year. This number will determine whether you qualify for any tax credits. These credits can reduce your premiums as well as your deductibles and coinsurance amounts.

This process can all be a little confusing too. Agencies like ours can help you navigate your options on the insurance exchange where you should shop for coverage. And because of the Coronavirus, most companies are allowing for same day enrollment. This can help avoid any gaps in your insurance coverage.

Short Term Health Insurance Plans

Many of our clients turn to short term health insurance plans as a stopgap measure. These policies can be purchased for months at a time and can provide peace of mind until new insurance would be available. Short term policies are popular as their premiums are sometimes much less than plans on the Federal Exchange. This can be especially true for those who don’t qualify for tax credits.

There are some drawbacks, however. Most short term policies will not cover preexisting conditions. And they don’t always cover multiple doctor’s visits, preventive care, or expensive medications. If you are concerned about plans that cover pre-x, dr’s visits and meds, then you may want to consider an ACA-type plan.

But if you just need something until the next health insurance Open Enrollment window, or a new job begins, or even Medicare eligibility – then a short term plan can be a good fit. In fact, some plans can be purchased to cover up to three years at a time. Our younger, healthier clients prefer this strategy most often.

What About State Run Medicaid Options?

If you are applying for coverage on a Federal or State run exchange, you may receive notice that you qualify for Medicaid based on your income. Medicaid insurance can be a good fit for adults, children or both depending on eligibility. If you think you might qualify then you’ll want to contact your local office.

With all that’s going on right now, it may take more time to process your application. Many entitlement systems are overrun. And sometimes, those who apply may not qualify for coverage – or only their children are eligible through a CHIP program. If you’re not sure, then you may want to secure other insurance in the meantime.

Contact us for Quotes and Coverage

We are a full service health insurance brokerage. We can help you with short term plans as well as those that originate on the Marketplace. We can also assist with Medicare enrollments as well. We offer Medicare Supplements, Advantage plans, and Part D Drug coverage. Contact us to discuss your options today!

Category: Health Insurance, Medicare Supplements

Coronavirus health insurance As we all adjust to lifestyle changes due to the coronavirus, our brokerage is getting questions about what to expect from health insurance policies. We aim to answer those questions below. This information applies to those on individual and group plans as well as Medicare recipients.

We’ll also discuss ancillary policies that are designed to cover unexpected out of pocket expenses. These will apply to those without health coverage and for those who are looking to fill gaps in their existing plans.

Grace Periods for Premium Payments

The government does not want consumers to lose their insurance during this outbreak. This applies to individual and group plans. Grace periods are being put in place for those who may not be able to pay premiums due to job and/or income disruptions.

For individuals on a Marketplace plan, there are some grace periods as to binder payments and regular premium payments. These look to be state specific, but should follow federal guidelines. The grace period can be anywhere from one to three months depending on whether there are ongoing claims. If there are claims, we read this as a one month grace period, but three months for premium payments where there are no claims. It’s best to talk with your insurance company.

For groups, the government wants to avoid layoffs for as long as possible. Even if hours are reduced below full-time (30 hours), members can stay on their group insurance plans. Insurance companies cannot increase premiums and plans cannot be cancelled due to normal participation requirements. There is also a 60 day grace period for premium payments among other measures. Insurance companies should be sending out details of these changes to groups soon.

Individual & Group Health Insurance Plans

The good news is that all major individual and group insurance providers are waiving any copays, coinsurance and/or deductibles that would apply to a coronavirus test. Where available, you should be able to get tested with no out of pocket costs whatsoever.

In fact, Aetna has announced that they will also waive any cost-sharing associated with a hospital admission. This goes well beyond just testing and would be a big relief for those with a high deductible and large out of pocket exposure. Hopefully, other insurance companies will follow suit.

Additionally, short term health insurance plans with most major insurance companies will cover testing costs. Many individuals have enrolled in short term health insurance to reduce monthly premiums. The insurance companies underwriting these types of plans (like United Healthcare, National General, Medical Mutual and others) have all agreed to cover testing with no cost to the insured.

The waiving of out of pocket fees to the insured only covers testing for the coronavirus, however. Should you need more care by a doctor or at a hospital, then your deductibles, copays and coinsurance will come into play. There are ways to account for those costs through ancillary coverage, however. Please read more about that below.

What to Expect if You’re on Medicare

Most Medicare beneficiaries will be in good shape if they’ve purchased supplemental insurance of some kind. There are some exceptions, of course.

Same as the individual and group policies above, all Medicare programs have agreed to waive any out of pocket costs associated with a coronavirus test. Whether you have a Medicare Supplement or Advantage plan, you should not expect to run into any fees with a test.

But should you get sick and need care, then deductibles, coinsurance and copays will apply. If you have a comprehensive Medicare Supplement (like Pan F, G or N), then you have very little out of pocket exposure in case of an illness. Medicare Advantage owners have more out of pocket, however. They could expect to face more bills in the event of an illness.

And most Medicare recipients own a Part D Drug plan – either on a stand-alone basis or as part of a Medicare Advantage Prescription Drug (MAPD) plan. Should you need prescriptions, you can expect your Part D coverage to help offset those costs. And many plans are allowing for early refills. That might be a good idea if movement becomes more limited due to any quarantines.

Medicare has stated that if/when a vaccine becomes available, it will be covered by all Part D Drug plans. This applies to both Stand Alone and MAPD policies.

There is one pitfall with Medicare, however. As of now, it does not cover what are called Under Observation stays. If you were put Under Observation, then Medicare, your Supplement or your Advantage plan may be of little help. There are ancillary policies designed to cover this gap, but they must be purchased separately.

Telehealth Services During Coronavirus

This service applies to all types of insurance policies. The good news is many group plans already offer this service at no additional cost. Unfortunately, most ACA individual plans and short term policies do not at this time, but that’s starting to change.

And the Centers for Medicare and Medicaid services have expanded Telehealth services to all Medicare recipients. This means you can now remotely connect to a doctor if you’re not feeling well. This is helpful for those in rural areas as well as those who would rather avoid a waiting room. This is a very good way to discuss any concerns you might have with a doctor.

What if your insurance plan does not cover telehealth services? You can buy a policy if you wish – either on a group or individual basis. There are a few companies that specialize in offering this benefit. Please contact us if you’d like to learn more.

What if I Don’t Have Any Health Insurance at all?

If you don’t have any health insurance, now is a good time to change that. You can still buy short term health insurance plans (subject to medical underwriting) that can be effective the next day. And these plans can be purchased to last through the end of the year or longer.

And some states are opening up their exchanges allowing consumers who have no health insurance to purchase Affordable Care Act (ACA – Obamacare) plans. Usually these policies can only be purchased during Special Election Periods (SEP) or during the annual Open Enrollment window that runs from November 1 through December 15th.

However, a few states are changing those rules by declaring the coronavirus outbreak a SEP so consumers who have been going without health insurance can buy major medical plans now. Consumers with low income will still be eligible for premium subsidies during this time as well.

If you get laid off, you should ask your HR manager about your COBRA options. If continuing your current insurance through COBRA is not a good fit, then you can shop for an Affordable Care Act – or short term health insurance plan.

Ancillary Coverage to Fill Health Insurance Gaps Now

If you’re worried about gaps in your coverage, high deductibles, being put Under Observations, etc., there are several ancillary policies available. Many companies offer Accident & Sickness policies as well as Hospitalization and Indemnity plans. Like short term coverage, these can be purchased year round subject to medical underwriting approval. Not all who apply will be accepted, unfortunately. You must be in decent health to qualify.

These plans can either pay you or pay the healthcare provider. Some are simply triggered by an accident, sickness or illness and will pay you regardless of your cost. Many of these plans can pay up to $10,000 or more. Policies can also be purchased to cover smaller amounts.

These coverage types offer a great way for those with current insurance to cover their out of pocket exposure. They are also valuable for those who have been going without insurance for any reason. Most policies are very affordable and can be purchased for as long as you wish.

Contact Us For More Information

Hyers and Associates is a full service insurance agency specializing in individual, family, group and Medicare health insurance plans. If you’d like to know more about any of the above strategies and/or policies, call or write us today to learn more.

Category: Health Insurance

AARP Medicare Supplement Insurance We offer AARP United Healthcare Medicare supplement insurance to our clients nationwide. These two companies have partnered together to offer members additional services and benefits.

It is required that you (or someone in your household) be an AARP member in order to enroll in a United Healthcare Medicare Supplement. We can help you understand how this process works and also help with a membership and enrollment – at no cost.

Medicare Supplement Insurance Plans From UHC

It is important to note that AARP is not an insurance company. They are a non-profit interest group that advocates for those age 50 and above. The insurance company underwriting these Medicare plans is United Healthcare. These two have partnered together for years.

In order to enroll in a Medigap plan, you first must be (or soon to be) enrolled in both Medicare Parts A and B. If you are in your open enrollment or a guaranteed issue window, then no medical underwriting will be necessary with your application.

If you are not in open enrollment or guaranteed issue, then medical underwriting will be required. Those with certain health conditions will be declined or charged higher premiums. It is always best to use your own personal 7 month Open Enrollment window to buy a Medigap policy.

What Medigap Plans Should I Consider?

AARP/UHC offers traditional plans A, B, C, F, G, K, L, M, N in most states, but not all plans in every state. Your options for enrollment will depend on whether your Medicare eligibility was before or after January 1, 2020. If you enrolled in Medicare Part B after 2020, then Plans C and F are not available.

The most popular Medicare supplements are Plans C, F, G and N. We see a lot of interest in Plans G and N as they cover the most important gaps while still offering affordable monthly premiums.

And a variation of Plans G and N can be purchased in some states. These are called Select Plans and require the use of an in-network doctor for routine services. You can use any doctor in the event of an emergency, however. Medicare Select Plans will cost less than their traditional counterparts.

Additional AARP Membership Benefits

As part of an AARP membership, you’re eligible for vision & hearing discounts, gym memberships, wellness coaching, and a 24 hour nurse hotline. Members can speak with a registered nurse by phone 24 hours a day for realtime health support.

In many areas, you will also receive a free gym membership at participating fitness locations. There is an extensive network of providers that can be found on their website. This benefit is called Renew Active and is offered in most states.

What About Silver Sneakers?

In lieu of Renew Active, United Healthcare AARP offers Silver Sneakers with Medicare Supplement plans in Arkansas, Colorado, Nebraska, Pennsylvania, South Carolina, and Virginia.

Spouses only need one AARP membership per household. You do not need to enroll or pay twice.

United Healthcare Premiums & Discounts

Monthly premiums will vary depending on your state of residence, age, health and desired plan. Medicare supplement insurance costs will vary widely between competing companies in the same state. AARP/UHC insurance plans are competitively priced in many states across the country.

You will reduce premiums if you pay for your coverage either monthly or yearly. With either method, your savings would be $24 a year. Where offered, you and your spouse will be eligible for a 5% marital discount when enrolled together. Should one spouse enroll at a later date, the discount will still be available for both.

There is also an enrollment discount associated with AARP Medicare supplements. Your discount will depend on whether you’re in Open Enrollment, your age, and any medical conditions you have. Any discount you receive will erode each year as you get older.

Plans are community rated and your premiums will be determined by your gender and tobacco usage in most cases. In some states, tobacco usage will not increase your rates if you’re in your Open Enrollment window. Ohio would be an example of this rule.

Request Information, Quotes & Enrollment

Hyers and Associates, Inc is an independent agency marketing Medicare supplement insurance policies direct to consumer. We represent AARP branded plans underwritten by United Healthcare. We can show you their direct rates as well as those from several other insurance companies in one place.

Compare Medicare Supplement Quotes Today

Category: Medicare Supplements

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