Turning 65 in 2021? Medicare and Social Security Explained - YouTube

If you're turning 65 and coming up on Medicare,  today's video is really going to give you some  

of the learning that I think you need to get  started on this whole process. So, you really  

have three decisions that are critical, and you  need to get them right, and you need to understand  

the sequence of these three decisions. So the  first one is going to be with Original Medicare,  

Parts A and B, is whether you sign up for  them when you turn 65 or whether you delay,  

and so you say well, what about  delay? Well if you're still working  

and covered under group insurance you may want to  delay your start of Medicare Parts A and part B  

until the time you leave your work, or you may  not, if you need the Medicare insurance or you're  

not working or you're paying for insurance on  your own then that's a pretty simple decision,  

you're going to want to sign up for  Medicare, Original Medicare Parts A and B,  

okay, so once you make that decision now we move  on is how are you going to receive your Medicare?  

Are you going to stay on Original Medicare or are  you going to purchase a Medicare Advantage plan,  

which is really going on Part C, and it's getting  your insurance, your Medicare insurance, from a  

private insurance company instead of directly  from the government? So that's one route to go  

is the Medicare Advantage route. The other route  is to take keep your Original Medicare, still  

get your Medicare insurance directly from the  government, and purchase a Supplement to Medicare,  

and this is a completely different route. So  you're going to get your Medicare from the  

government, you got fairly large deductibles  and copayments, or you've got liability,  

and what you're going to do is you're going to  stay on that and then you're going to purchase a  

supplemental plan, which is going to pay all those  liabilities for you, or most of them, so that you  

have very little out of pocket. So these are two  very distinct routes as you're going to have this  

plus this ,or you're going to have this turned  into this, so that's the second decision.  

And then the third decision is going  to be once you've made those first two,  

is what insurance company are you going to  buy your insurance from? So if you're over  

here on the Medicare Supplement route, you've got,  we're just showing you prices around the country  

for six of these companies, but  it's the same companies that offer  

Medicare Supplement offer the Medicare Advantage  plans, and we're going to be into that, as well  

as the standalone Part D drug plans, so those  are the three decisions that we need to make,  

and what I'm going to do today is get into  each one of those decisions a little bit  

and tell you what's going on so that you can  really make them from an educated place. So  

Original Medicare is broken into two parts  - it's Part A, which is your hospital bill  

and your hospital coverage, and Part A does  not cost you anything once you're on it, okay,  

you've been paying taxes your whole life for  this and now when you're on Medicare you just  

sign up for Part A and you're entitled  to it. Part B is a little bit different,  

it is your doctor and outpatient, it's the  part of Medicare that pays 80% of your bill,  

and then that's leaving you with 20% of the  bill, which is going to come out of your pocket,  

and that's why people buy Medicare  Supplements if they stay on Original Medicare.  

So you got Part A and Part B, and Part  B costs $148.50 a month, and most people  

have this deducted from their Social Security  check if they're on Social Security already.  

If you're not on Social Security yet, you're  going to have to pay this bill into Medicare,  

$148.50, and if you're a high income person,  you've got this thing called IRMAA, which is a  

an additional, it's like a surcharge, and  it can make this, you know, up to triple  

or higher than triple, quadruple, this amount  when you put the two together, I mean it's just  

for high income people. If you want to learn about  IRMAA, just give me a call get in touch with me,  

I can walk you all through it. With Part B you've  got these lifetime penalties for making a late  

sign up where you didn't do this properly,  so you really, if you're a working person,  

now working and covered under group insurance,  and you've decided to delay, make that decision  

cautiously because if you later get on to  Part B and you didn't do things properly,  

you're going to have to pay a penalty and you  might not be able to get on it as quickly as you  

want. So that's the first decision, whether we're  going to start this at turning 65 or we're going  

to start it at some later date. Okay, so then  when we move into the second decision is really  

whether or not you're going to take this and turn  it into this, which is a Medicare Advantage, okay,  

or you're going to stay on Original Medicare and  you're going to add to it a Medicare Supplement,  

okay, and all of that is outlined here. Now  if I'm going to help you with the decision, so  

why would you want to do one or the other,  because this is just a clearly a one or the  

other thing that you need to make before you start  digging into which company. So the Advantages,  

or the pluses of Medicare Advantage, are a few,  number one is many of these come at zero premium,  

so if you're able to get on Medicare A and B  and then outsource your Medicare to a company,  

like Humana, or UnitedHealthcare/AARP, that type  of company, most likely you're not going to have  

to pay any premium, it's a zero premium, and  some of them will also give you some money back  

toward this Part B premium that you got to  make, so you get a credit back for that,  

so the advantages to this is it generally costs  less out of your pocket, while you're healthy,  

on the Medicare Advantage. You also get some of  these extras, like you get included a Part D drug  

plan just comes with the package, you have  dental, you have vision, some of these offer  

gym memberships, they offer food plans, there's a  lot of extras that come with these, okay, that's  

the pluses. The disadvantages to these Medicare  Advantage plans is, number one, you have a network  

of doctors and hospitals. So generally you need  to go to the doctors and the hospitals that are  

on the plan and covered under the network. Now  most people are used to networks if they've been  

on group insurance under 65, so this is not real  troubling, but it is a disadvantage to these plans  

that you know you, you're going to have to play  by their rules. You also have deductibles and  

co-payments on these plans, not as high as you  have on Original Medicare, they're much smaller,  

but they still add up over time. Now the other  route, or the other piece of this decision,  

is you're going the Medicare Supplement route and  that's where you have Original Medicare and then  

you're adding to it a Medicare Supplement, and  the Medicare Supplement is going to pay this 20%  

that's not covered under Part B, that's what  it's for, it'll even pay excess charges,  

and it also, when you're turning 65, you've got an  open enrollment onto these Medicare Supplements,  

meaning that you have to  answer no health questions  

at all, you can, you know, we have people that are  on kidney dialysis, or people that have cancer,  

people with diabetes, people with  very serious chronic illnesses,  

where under normal circumstances they wouldn't  be able to even get a Medicare Supplement,  

they're guaranteed that they can pick any company  they want within six months, or when they go on  

Medicare, it's called open enrollment, so  there would be a reason to go this route  

if you've got a serious chronic illness,  or at least to consider going this route,  

is you can buy these policies without answering  any health questions. And then you know what we're  

featured here, and what most of our customers buy,  is the Plan G, and the Plan G is just, A, B, C,  

D,blah blah blah blah blah... has the most  benefits that are available to people turning 65.  

Now and what we've shown here is the pricing  across the country, and we're started out in  

New York, which you know, we're in all  50 states, in the District of Columbia,  

we're licensed there and we can take care  of people anywhere in the United States.  

New York is the most expensive to buy a Plan G and  you can look at the difference in pricing here,  

is that AARP is going to charge you $268 a month  for a Plan G, 65 years old, in New York, and  

Mutual of Omaha is going to charge you almost  double that for exactly the same thing - all of  

these prices here, regardless of which company  they're with, are for exactly the same thing.  

So why would you want, what are the advantages of  going Original Medicare and a Medicare Supplement?  

So the advantage number one is you can  go to any doctor in the United States  

and hospital that accepts Medicare. I mean  that's huge for a lot of folks is you're not  

going to have to mess with a network, so  that could well be the biggest advantage.  

The second advantage of these is they take  care of most, and the Plan G covers most  

of your deductibles and co-payments, in fact when  I say most, there's going to be a $230 Part B  

deductible in 2021, and that's going to be your  only liability for stuff covered under Medicare  

between Original Medicare and a Supplement,  so there's a real clear advantage, is this is  

going to pay better when you're sick and it's  going to let you go to any doctor in hospital  

that takes Medicare, and the disadvantage is  you've got to pay this premium every month,  

as opposed to the zero premium, so you know  and that may depend on which state you're in.  

If you're over in North Carolina, which is where  our business is located and I live, this is one  

of the lowest priced states in the country, and  you can see that there's some variance in cost,  

and we're just showing these six companies,  there's actually about 40 different companies in  

any given state that offer the Medicare Supplement  coverage, and they're all selling exactly the same  

thing, so price is a big factor, and we're able  to spread sheet these things and let you decide.  

Now another advantage, and then you could call  it a disadvantage, of going the Original Medicare  

plus a Medicare Supplement is you also need to  purchase a Part D drug plan, so the disadvantage  

is you got to pay the premium for that, $10 to $40  a month, some of these have actually come down in  

premium over time, but what the advantage to that  is is we can actually plug in the drugs you're on  

and we can get you with the one that's  going to pay the best on your drugs, so  

whereas you're over here, you're not going  to have to pay for your Part D drug plan,  

it's just going to come as part of the  plan, but what the disadvantage to that  

is you're just going to get whatever's  tacked onto the plan that you want,  

here you're going to have choice. Okay so then  the third decision that you're going to make  

is, once you've decided whether you're going to go  here or you're going to go here and here and here,  

is what company are you going to buy it  from, and, you know, we can offer you more  

choices than these six, but these are names  that you're going to recognize most likely,  

and many of the other companies you've not heard  of them before but they're perfectly fine options,  

we can go over that when you call us and show  you different options, but I've chosen these six  

because they're the largest, they're also,  with the exception of Mutual of Omaha,  

they're the main companies that offer the Medicare  Advantage plans. So when you come over here,  

you can look at an Aetna Medicare Advantage,  you can look at a United Healthcare AARP,  

you can look at Humana, you can look at Wellcare,  and then when you're over here, you can look at  

these ones plus a bunch more, and they're  the same companies that offer the drug plans,  

and then we as well offer standalone dental  and vision, so, and you have to pay for that  

separately if you buy a separate policy for it,  you're going to get some coverage for that over  

here at a zero premium under the Medicare  Advantage plan. So we're pretty neutral  

as whether which route you're going to want  to go, and we become less neutral once we get  

to know you and find out what your preferences  are, what your budget is for this sort of thing,  

so we provide consulting on it. Now I want to talk  about a couple more things before we sign off. One  

is a question that we get asked many times is that  a lot of folks think that Social Security starts  

when they turn 65, and it used to work that way,  and it can actually start now earlier than 65,  

but we have this thing with Social  Security called Full Retirement Age or DRA,  

and the same people that do Medicare do Social  Security, or the same Social Security does  

Medicare, so when you're talking to them, you're  going to need to talk to them about when you're  

going to start your Social Security, and Full  Retirement Age is on its way to 67. So you know,  

at my age, I'm 62, my full retirement age, I  was born in 1958, is 66 and 8 months. People  

just a little bit younger than me, it's going  to be 67. And for you, if you were born in 1950,  

your full retirement age is 66 and 4 months, if  you're 1957, it's 66 in 6 months. And what full  

retirement age means is that's when you're going  to get your full benefit of Social Security.  

Now you still may want not want to start on that  date, you may want to delay all the way to 70  

because you'll get a larger check, but you're  also going to miss out on those checks.  

Some of you may already be on Social Security  because you started early, then this whole  

explanation is kind of a mute point. There's also  factors with Social Security about your spouse, is  

that many of you will collect on your spouse who's  the higher earner. If that's the situation, if you  

have a deceased spouse and you didn't remarry  before 60, you can collect off of their benefit,  

divorce spouse the same thing, different benefit,  so there's a lot of consulting that can be done  

on that, and what I'll add on this video is age 64  is a great time to be looking at your IRA and 401k  

and seeing now I'm going to need to turn that  into an income in retirement, how do I do that?  

We can certainly help you with that. Life  insurance it's a point where it's Life Insurance  

is still affordable and if you've been relying  on group insurance, or you have term insurance  

that's expiring, we can get you a smallish policy  or smaller policy or even a large policy that's  

going to be enforce for the rest of your life.  And then we need to have the discussion about  

long-term care insurance and who's going to take  care of you when you can't take care of yourself  

if that situation happens to you. I'm Hans  Scheil and I thank you very much for listening.