7THINGS YOU NEEDTO KNOW ABOUT MEDICARE

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Investment Advisory services offered through Coppell Advisory Solutions, LLC, dba Fusion Capital Management, An SEC Registered Investment Advisor. Mach 1 Financial Group intends for this information to provide a general overview about the topics covered and to help answer some general questions about Medicare Part A, B, C and D. Choosing the correct combination of Medicare is typically tailored to your specific circumstance, this information is not intended to be relied upon as such. You are urged to consult with Medicare professional that understand your particular circumstances before utilizing any of the ideas or information presented in this report. No representations or warranties are made with respect to the accuracy or completeness of the information provided.

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For most people, health care will be their largest retirement expense—even with Medicare. In fact, some estimates rank health care at the top of the list of retirement expenses, exceeding housing and recreation costs combined.

1. It’s not free and may cost more than you expect.

A 65-year-old healthy couple can expect to spend $266,600 over the course of their retirement on Medicare premiums alone, according to HealthView Services*. A figure that Fidelity* estimates is slightly lower at $245,000 per couple. Neither included out-of-pocket expenses, like co-pays or deductibles, or long-term-care costs in their estimates.

SOLUTION: Awareness and solid financial planning with Mach 1 Financial Group.

7THINGS YOU NEEDTO KNOW ABOUT MEDICARE

THE FOUR PARTS OF MEDICARE

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If you are under the impression that Medicare will cover all your health care costs when you retire, you are mistaken. Neither Parts A nor B cover any of the following, although Part C Medicare Advantage or Medigap supplemental plans may offer some coverages depending on their policy terms.

2. Medicare Parts A and B don’t cover many services you think it might.

Medicare does not cover:Most dental careEye examinations related to prescribing glassesDenturesCosmetic surgeryAcupunctureHearing aids and exams for fitting themLong-term careConcierge care (also called concierge medicine, retainer-based, boutique medicine, platinum practice, or direct care)Prescriptions received from a pharmacy

SOLUTION: Understand and plan for services you may want to utilize that are not covered by Medicare. You may need to adjust your savings commitment or consider purchasing individual insurance for some services like dental or Part D pharmacy coverage.

7THINGS YOU NEEDTO KNOW ABOUT MEDICARE

www.mach-1financial.com | 479-876-2100

7THINGS YOU NEEDTO KNOW ABOUT MEDICARE

It’s important to know that there is no yearly or lifetime out-of-pocket maximum when it comes to Medicare.

3. There is no out-of-pocket annual or lifetime ceiling.

You are responsible for deductibles and at least 20% co-insurance for approved services. There is no expenditure threshold where you stop paying for care. This includes pharmacy expenses.

SOLUTION: There are insurance options available to help pay for deductibles and coinsurance and/or to create ceilings on your financial responsibility.

Both Medicare Parts B and D have penalties associated with them if you delay enrollment when you turn 65. You will pay assessed penalties on top of your premium for life. It is imperative that you understand your options before your enrollment eligibility windows close.

4. There are penalties for not enrolling in Medicare benefits when you become eligible for them.

If you maintain creditable coverage through an employer plan you will not be assessed penalties for Medicare enrollment when you retire past the age of 65. Upon retirement, you will be granted a Special Election Period (SEP) to transition to Medicare benefits. It is important to note that your options are slightly different when you turn 65 than when you are granted a SEP. It is good practice to compare Medicare benefits against your employer coverage before turning 65 to understand your options and what delaying Medicare benefits may mean to you.

NOTE: COBRA does not count as creditable coverage for Medicare.

SOLUTION: CBI65 specializes in reviewing retirement scenarios and will help you outline and understand your options and timelines.

www.mach-1financial.com | 479-876-2100

7THINGS YOU NEEDTO KNOW ABOUT MEDICARE

In 2017, retirees pay the standard premium of $134 each month. People with incomes higher than $85,000 (or higher than $170,000 for couples) may pay from $187.50 to $428.60 per month for Part B premiums and from $13.30 to $76.20 per month extra for Part D premiums.

5. You can be surcharged on your Parts B & D premiums.

Surcharges are based on the tax year two years behind the coverage year. For 2017, surcharges are based on the 2015 tax filing. Once becoming a Medicare beneficiary, it is important to know that financial transactions reported as income can change your surcharge category. For example, withdrawing money from a tax-sheltered IRA to pay off a home mortgage might put a couple into a higher premium category.

SOLUTION: Review your income and investment options against the surcharge grid to see if your income planning is to your benefit. Keep in mind required distributions at 70-1/2.

Premiums for Medicare Parts A, B, and D may be deducted directly out of your Social Security benefit check, so keep that in mind when planning your monthly retirement income.

6. You usually pay for Medicare by having it deducted from your social security check.

If you are not already receiving Social Security benefits when you turn 65 and want Medicare benefits, you must sign up for Medicare through the Social Security Administration and pay them directly for any premium due.

If you are already receiving Social Security benefits, you don’t need to do anything to enroll in Medicare. You will be automatically enrolled in Medicare Parts A and B effective the first day of the month you turn 65 and premiums will be deducted from your Social Security benefit.

SOLUTION: Review your income sources with Mach 1 Financial Group to insure you have made appropriate adjustments for Medicare premiums.

www.mach-1financial.com | 479-876-2100

7THINGS YOU NEEDTO KNOW ABOUT MEDICARE

It’s clear that planning for health expenses and coverage when you retire has a significant impact on your enjoyment of your Golden Years. Call us to discuss how we can help you create a retirement income plan, protect yourself and your family against the catastrophic financial effects of an unplanned illness and give you the confidence that comes with taking action to help secure your future.

Investment Advisory services offered through Coppell Advisory Solutions, LLC, dba Fusion Capital Management, An SEC Registered Investment Advisor. Mach 1 Financial Group intends for this information to provide a general overview about the topics covered and to help answer some general questions about Medicare Part A, B, C and D. Choosing the correct combination of Medicare is typically tailored to your specific circumstance, this information is not intended to be relied upon as such. You are urged to consult with Medicare professional that understand your particular circumstances before utilizing any of the ideas or information presented in this report. No representations or warranties are made with respect to the accuracy or completeness of the information provided.

Health insurance coverage is required under the Affordable Care Act. This could change with the new administration.

7. Medicare meets ACA requirements.

If you have Original Medicare (Part A and Part B), a Medicare Advantage plan (Part C), or Medicare Part A only, then you meet the Affordable Care Act requirement to have health insurance. However, if you are only enrolled in Medicare Part B, this does not satisfy the minimum essential coverage requirement.

SOLUTION: Secure an insurance broker like CBI65 who can alert you to any changes in insurance legislation that will impact your coverage and spending.