How Divorce Impacts Medicare Benefits Transcript

Speaker 1  00:00

No need to lose sleep over planning your Medicare coverage. Lisa Lauro and the team at Secure Money Health want you to get the best, most customized service when planning your Medicare coverage. In fact, Lisa wants to share her new book with you, The Ultimate Medicare Book. It’ll help you choose the right plan, understand your benefits and avoid common pitfalls. Go to mymedicarebook.com. That’s mymedicarebook.com.

 

Speaker 2  00:30

It’s time to secure all your health care needs,

 

Lisa Lauro  00:34

and we will really simplify the process.

 

Speaker 2  00:30

Welcome to Secure Health with Lisa Lauro.

 

Steve Sedahl  00:38

Hey, everybody, welcome in. This is a Secure Money Health Radio with Lisa Lauro. It’s where Medicare matters. That is our, our subject today, and we do that each and every week. Lisa, always good to talk with you. How are you?

 

Speaker 2  00:56

I am doing really well, really well. How about yourself?

 

Steve Sedahl  00:59

Very well, thanks. And I think that you know this, we’ve got some interesting scenarios that people have presented, and you’ve expanded on that so and I think we’re going to cover some ground here today that I think just makes, well, it’s kind of back to basics in some ways, but I think some of these things are pretty new to people.

 

Lisa Lauro  01:17

Yeah, I mean, just reading through some of the ones that came in, I think they’re very applicable to a lot of people too, just different scenarios that come up that maybe you’re not certain about. So,

 

Steve Sedahl  01:28

Sure. Well, let’s remind folks of just about who you are. You are president of Secure Money Health. You’re an author. You wrote The Ultimate Medicare Book, Simplifying Medicare So You Can Make Confident and Informed Decisions. That is what we’re doing here today, and we’re glad you’re here to make sure that happens.

 

Lisa Lauro  01:45

Yes, thank you. Me too.

 

Steve Sedahl  01:47

And again, you can get your free book. Yep, that book will come straight to you. Find it at medicarebookoffer.com, medicarebookoffer.com. Lisa’ll, go ahead and send you the book, no charge. And it’s a, you know, it’s a hard it’s a book. It’s a real book. I mean, it’s a paperback, but it’s a book.

 

Lisa Lauro  02:03

It’s a real book. Yes! You can highlight it you can, you know, what do they call it when you earmark it?

 

Steve Sedahl  02:08

Fold the page? The dog? Yeah, dog ears. Is that what they call it, yeah? Well, all right. Well, let’s jump in here. We’ve got, this is an interesting one. So here is a gentleman after years of cross country road trips on his Harley, this retiree hits a speed bump with Medicare enrollment. So he’s a long-haul trucker, former long-haul trucker, turned motorcycle enthusiast. He says Medicare will be just as simple, he thinks, as Social Security. But that’s not necessarily the case. Yeah, Social Security is a breeze compared to Medicare. Let’s talk about this. So he’s got some he’s got some concerns, and he’s learning them that there are things called Late Enrollment Fee, fine.

 

Lisa Lauro  02:51

Yes, yes. So, so yes, there is such a thing as a late enrollment and that is applicable to your Part B so it’s called a Part B penalty, you know, and that is if you miss your initial enrollment period. And that is a timeframe of seven months wrapped around your 65th birthday, starting three months prior to your birthday and three months after and so, you know, what people don’t realize is that it can increase your premium by 10% for each 12-month period that you are delayed.

 

Steve Sedahl  03:32

Holy cow. How long was this guy delayed? Probably not long. But apparently he’s going to pay that price, and that price, that fine. That doesn’t go away, does it?

 

Lisa Lauro  03:41

It doesn’t, you know, so, I mean, you think, Okay, well, I’m caught up now. Can it go away? But it doesn’t. It stays with you forever. So, you know, with rising premiums for Part B, you know, year over year, you definitely don’t want to find yourself in a position where you’re paying more than you have to. So, it’s something to be very mindful of as you’re getting ready to turn 65; definitely want to reach out and have somebody walk you through this step by step, not so that you’re avoiding any possible penalties, right?

 

Steve Sedahl  04:14

Right. Well, let’s set this up, because in this case, if he’d have called you, come on in, sat down, and you’re going to walk us – you know, you’re going to walk him through the process. So again, he says he was confused about Medigap versus Medicare. Well, that’s, that’s what you do, to be able to define the difference,

 

Lisa Lauro  04:30

Yes, yes, and, and, and, you know, a lot of people hear about Advantage plans, right? Medicare Advantage plans, because you see a lot of TV commercials for them, especially during the enrollment periods of time. But not a lot of people know that there’s a thing called the Medigap Plan and so, you know, it’s something that you do have options, and we will go through your options. We’ll go through each one of those pretty thoroughly, talk about the pros and the cons, which one is geared maybe for you for specific reasons. If you know this, this gentleman travels a lot, so you know he needs to really consider if he’s going to be covered while he’s on the road, right? You know. So, it’s not a one size fits all. You do have to know what your options are, and your lifestyle plays into that, not just your health.

 

Steve Sedahl  05:24

Sure, absolutely. And again, the thing is, is all about being prepared, and that’s like we want to for retirement. So if you’re working with, you know, Brian and the team at Secure Money Advisors, then, you know, come on over to see Lisa at Secure Money Health and make sure you’re you got the whole package taken care of.

 

Lisa Lauro  05:42

That’s right? Yes, it’s a, it’s, you know, it’s, it makes it a lot easier. You know, you there’s a lot of times where I will call over to the advisors over there and say, hey, you know, what is the retirement plan that you have set up? Do we have enough to incur you know, if we go with this plan, you know, do we have enough, or do we need to add to it? You know? So, it’s very important that your, your, the folks you have working for you, to make sure that they’re in contact with one another, and that they’re planning things appropriately.

 

Steve Sedahl  06:11

Sure, all right, well, so he’s taken care of. Let’s here’s another. I like this. A couple is retiring early. Want to travel the world. So, here’s a little bit about them. They’re married. They sold everything at 63 to explore Portugal, Thailand and – Thailand and beyond. But when they turned 65 their global plans collided with Medicare’s US-centric limitations. Let’s talk about that. I see stories all the time. These are the best 10 countries to retire in on under $2,000 a month, yeah, but they don’t ever talk about Medicare. They never talk about healthcare, right?

 

Lisa Lauro  06:44

Exactly. That’s like a topic that’s sort of, you know, people don’t even realize that, you know what, which direction they what their options are when they when they’re traveling, right? So, it’s kind of an elusive thing. But, yeah, so, so traditional Medicare. Let’s talk about traditional Medicare first, in terms of your original Medicare, which is your Part A and your Part B. You have to have A and B whether you’re going to pair it with a Medigap plan or you’re going to pair it with an Advantage plan. So everyone has to have Part A and B. And what a lot of folks don’t realize is your Part A and B does not cover you through foreign travel. Original Medicare does not cover foreign travel.

 

Steve Sedahl  07:26

So you’re, so what happens then? I mean, you just wouldn’t get coverage.

 

Lisa Lauro  07:30

Well that’s where you know, hopefully you’ve consulted with somebody like myself, who has encouraged you to pick up a supplemental plan, such as a Medigap plan or an Advantage plan, okay, so, if you paired your original Medicare with a Medigap plan, then that plan, whether it’s Plan G or Plan N, is going to cover foreign travel up to 80% with a lifetime maximum of $50,000.

 

Steve Sedahl  07:57

Okay, so, so it is doable.

 

Lisa Lauro  08:00

So it is doable, but you have, you know, if you just have A and B, then you’re, you’re, you’re not going to be covered abroad. The Plan G, and the N, will cover you the cover your 80% so he’s still on the hook for 20% of that. But it’s better than nothing, right? Right. Now, Advantage plans – oh, I’m sorry, Steve,

 

Steve Sedahl  08:17

No, no. I was just going to say they talk about private insurance as an option. Is that an option? I mean, I can’t imagine it’s, it’s very cheap.

 

Lisa Lauro  08:27

Well, when – what I think about with private insurance is, I’m, I almost was attributing to that to maybe you want to pick up your own separate travel insurance. And it’s probably not what, what, what they meant in this but, but I do think travel insurance would be a really good thing to have when you’re traveling abroad, and especially when you’re traveling on an Advantage plan. Advantage plans are – they’re, they’re going to cover you. They are contracted to cover you when you’re traveling worldwide. But it’s basically, you have to go to an urgent care or an ER, so you can’t just walk into, you know, let’s say you’re, you’re in in Switzerland, and your, your aunt lives there, and she’s got a great doctor, and she’s like, oh, you know, let me take you to my doctor. That’s not going to work. You got to go to the urgent care or the ER, okay? They’re contracted to deal with those situations,

 

Steve Sedahl  09:22

But it’s so, to me, it’s just vital, if you plan on traveling a lot in retirement, if you travel going international, in particular, this is a serious conversation to have, because the last thing you need is a medical problem in the middle of, you know, nowhere.

 

Lisa Lauro  09:37

Right. Right. Yeah, all these things matter. You really do need to plan and plan appropriately. And you know, it’s my understanding that travel insurance is, is a little expensive. I haven’t priced it out myself, but it is something you know, in fact, I am going abroad this summer. Going to go, I get to meet some cousins in Italy on my Dad’s side, that I had (Fun!) that we’ve that we’ve never met before, but I am going to be pricing out some travel insurance, because you just never know, and I don’t want to put myself in a position where I’m, you know, not covered.

 

Steve Sedahl  10:12

And I think, to me the takeaway from all this, and I know we’re going to take a break soon, but again, it’s meeting with someone who knows you. You know you’re independent, you cover everything. You’re not beholden to anyone. It doesn’t cost any money to come and see you, and you can get the peace of mind. And to me, that’s just – Boy, that’s invaluable!

 

Lisa Lauro  10:30

Right, right. You know, you know, when you’re sick, you go see the professional. You go see the doctor. When you’re, you know, have legal problems, you go see the professional, you go see the lawyer, right? So, you know, it’s one of those things where you need to go see the professional, the person that does it all the time, so that you’re not guessing. You take all the guesswork out. You’re not assuming anything, because we don’t want to assume. But, you know, we sit down and we talk about every single person’s individual needs, how we can help them. Everybody’s different. Everyone has different doctors, medications, lifelong goals and plans and so all that comes into play.

 

Steve Sedahl  11:10

So, do you have these kinds of conversations? I mean, are people coming in and saying, I want to travel and you can kind of plot out their life and sort of live vicariously?

 

Lisa Lauro  11:18

All the time, all the time, yes, yes. I like when they share their thoughts with me about what they’re planning to do, because it helps me. The more I know about you, the more I can help you and steer you in the right direction as someone who’s gonna you know, lead you in, in guiding you through this process. But also, I love to know more about my clients as well, and, you know, I share a little bit about my daughter and my family and things like that. It’s just nice.

 

Steve Sedahl  11:46

And, well, I think too. I mean, in the world of, you know, advisors, and certainly Brian and his team, you know, the clients, they don’t become clients, they become friends, they become family. And you’re part of that,

 

Lisa Lauro  11:56

Right, right. Yeah, you know, during the annual enrollment period. How many people come in and give me a big hug and say, How have you been? You know, it’s been a while, and it’s, it is, it’s, it’s super nice.

 

Steve Sedahl  12:08

Well tell you what, we have, up against the clock, so we need to take a break. I’m going to remind everyone, they can give us a call. 724-293-6653, you’re going to be able to sit down with Lisa and map out your, map out your Medicare and get those questions answered. So, call us right away. It’s 724-293-6653. 724-293-6653, we’re gonna take a quick break. We’re gonna come back though, and we have got Medicare and multi-generational homes. We’re gonna talk IRMAA – that and more when we come right back on Secure Money Health with Lisa Lauro.

We’re back on Secure Money Health with Lisa Lauro. My name’s Steve Sedahl. Lisa’s been helping folks, really, well, you’ve got a teaching background. I mean, this is your passion, and now you’ve taken it from grade school to well, old people. I’m just going to say it. I am among them.

 

Lisa Lauro  13:20

I don’t like to say it like that.

 

Steve Sedahl  13:21

I know that. I know, but we can joke, right?

 

Lisa Lauro  13:24

However, yes, it is a different age group and I do, I do love, you know, sitting and teaching no matter what the age so,

 

Steve Sedahl  13:31

Yeah, well, okay, here we’ve got a great scenario where we’ve got somebody retired school nurse moving in with her daughter’s family. Not unusual. But now, how does Medicare get handled at that point? And the background is, she’s 70 years old, living with an adult daughter. She helps raise the grandkids. Her health plan choices became a family affair. Is that something that you’ve seen?

 

Lisa Lauro  13:58

Yes, I see it even within my own family. My mom’s 90, and most of the time lives with me, eight months out of the year. So I can relate to that very well. But yes, I do see that where, you know, I’ve had several daughters and sons of my clients come and join them and help them with the process. I also sit with folks all the time who tell me, I don’t know how my parents did this, because years ago, we didn’t have people like myself. I mean, we did, but maybe not like I feel like, you know, they had to make choices, and my thought is, maybe they didn’t have as many choices as we have now, sometimes the more choices, the more confusing. But, but yes, people do sit with their with, you know, have to take over this portion of health care for their family members quite often.

 

Steve Sedahl  14:49

And that’s a process that you can help us through. How does it? How does it begin, I guess, and what would some of the questions be, do you think?

 

Lisa Lauro  14:56

Yeah, so, I think when, when you have a family member kind of taking control over their parents’ health, or, you know, at least helping them in the decision making process. It’s just equally as important for them to sit down with me in that meeting so that they understand Medicare and the processes and everything, just as much so that they’re asking the right questions. You know, the more educated you are on any specific subject, the better you’re going to be able to help guide somebody else, right? So I love it when they come is so they sit down with us, we go over everything, we talk about, the plans and things like that, and kind of decide, based on their situation, what is going to be the best plan for them. Now, with somebody moving in with their adult daughter, if they’re previously on a Medicare Advantage Plan, the first thing I think about is that you know you have to be living in the plan service area. So, if you’re making a move like this to your daughter’s home in a different service area, you would be required to change your Medicare Advantage plan. It oftentimes, if it’s a neighboring, if it’s a neighboring county, then the plans might be the same, but you have to just sort of make sure that you’re in the right plan for that specific county. You know also, a lot of times people have maybe confusion over billing or different authorizations and even facilities. Where can I go? You know, I have to take my mom for blood work. Can you tell me where I need to go for that? You know, that I can do. I can help look for doctors in the area. I can help you with medications. If, if you’re not sure, where’s the preferred pharmacy that I can go to where I’m going to get a better rate than a standard pharmacy. I can gear you or help, you know, direct you to the right place. And then, you know, some billing questions I can help with. You know, according, if you give me a copy of the bill, I might be able to help you with that, or at least kind of direct you to whom you might be able to speak with. Oftentimes, you have to go to the carriers for those because they have a better idea of what’s being billed and how it’s being billed, and coding and things like that, sure, but yeah, there’s a lot of things that I can handle for you, and helps to make that process smoother and more efficient, and also to help educate a caregiver on what they can and cannot do according to, and where they can and cannot go according to the program that they’re on.

 

Steve Sedahl  17:42

That, to me, makes so much sense, if you know, especially if someone has a particular doctor in mind, and so you can find out if that doctor is covered under whatever plan they choose. And if they, I mean, again, and not all doctors are covered, but then some are. You know, you might be able to find exactly what you need,

 

Lisa Lauro  17:57

Exactly, exactly. And one of the things that a lot of people forget about with these Advantage plans is that they have this, it’s called the OTC and it stands for the over the counter benefit. And that is the benefit where they’re giving you the carrier itself, whomever you’re with, is giving you money to use towards things that you can get over the counter. And so, you know, that’s something that, you know, maybe a caregiver who’s younger and doesn’t have Medicare wouldn’t even know exists, you know. And so now you’re, you know, some of these carriers are very generous. They’re giving you, you know, 150-$200 to use for the over the counter. That’s a lot of money wasted if you don’t know how to use it, you know. Or you don’t even know it exists. You know so,

 

Steve Sedahl  18:43

Well, so again, the bottom line is, if you know, if you’re, you know, you’re living with your kids. Your kids move – living with the folks. This is an opportunity to sort of get things straightened out from a health perspective. This is a big one, the IRMAA surprised, and I felt that, this past year the IRMAA surprise. Let’s talk about that and how that affects things,

 

Lisa Lauro  19:05

Right. So each year, first and foremost, IRMAA stands for Income Related Monthly Adjustment Amount.

 

Steve Sedahl  19:14

That sounds like a bunch of crap to me, but it’s very real,

 

Lisa Lauro  19:19

It does, right? Just a whole lot of mumbo jumbo. Yeah, but it is so, so the IRMAA is applied to your Part B, okay, premium. So your Part B premium is based on your modified adjusted gross income. This year in 2025 they’re looking at your taxes from 2023 so it’s always a two year look back. I’m not really sure why; I’ve had people ask me. I, the only thing I could come up with is maybe because some people don’t file their taxes on time they ask for an extension or something of that nature. So, but at any rate, it is a two year look back, and depending on what your modified adjusted gross income for this year. If you’re a married couple filing your taxes jointly, and your modified adjusted gross income is between $212,000 or less, you pay the standard rate of $185 if you’re in the next category, which is $212,001 to 266,000 if you fall within that, then you do get an IRMAA charge or penalty. So what they do is they charge you the standard rate, which is $185 and then for this particular category, they charge you an additional $74 as an IRMAA as a tax, and then, not only that, but your prescription drug plan would also get charged a tax of $13.70. Now, again, these numbers are specific to 2025, but the chart goes on and on and on. You know, the more you make, the more you have to pay as a tax.

 

Steve Sedahl  21:01

And that, that really comes down to means testing, right? I mean, that’s, that’s what this is. It’s a means testing. And, you know, not to divert too far, but that’s exactly what they’re talking about as a way to help to solve the Social Security issue. Is means testing. Same thing.

 

Lisa Lauro  21:17

Yeah. Now, you know, there are circumstances where, you know, people are retiring, and maybe they got a bonus, but that’s not their regular salary. That’s exactly, you know. So there are circumstances, and I do want people to be aware that, you know, if you have a life changing event, there’s different types of appeal considerations that they will look into there is a form on ssa.gov. I’m trying to remember, I think it’s the number 44, form, l44, or something like that. Okay, anyway, if you, if you Google it, you can find it, or go right to ssa.gov the website, and you can find it, but it is, it’s, it’s for you to be able to make an appeal. So, if you feel that your circumstances fit into one of the life-changing events, and that information is on the website as well. I highly recommend that you fill out the form and send in an appeal and see if you can get your part. B premium, discounted or…

 

Steve Sedahl  22:15

All right, yeah, I didn’t realize that I’m on it. I’m going there.

 

Lisa Lauro  22:18

Yeah, Steve, if this applies to you, well, by all means, we’ll help you walk through that process.

 

Steve Sedahl  22:25

All right, fair enough. 724-293-6653, let’s jump into this one before we run out of time. Creative Freelancer Meets Medicare Maze. So, we find a 68-year-old artist navigating Medicare but feeling a little, you know, weird, because he’s because it’s quite a transition. It’s a her, I’m sorry, and they’re really dealing with some stuff,

 

Lisa Lauro  22:48

Right, right. Yeah, it says, after decades of freelance income and no employer plan, she wasn’t sure how to coordinate her Medicare with her marketplace plan and then a late enrollment. So, when they were referring to Marketplace plan they’re talking about, especially here in Pennsylvania, they’re talking about the Penny, which is the Affordable Care Act, plans that are for folks that are under 65 which makes sense if she’s freelancing, then she had to go and get her own insurance. She went to the Health Marketplace Penny, and she picked up a plan for herself as she is approaching 65 she is going to be required to get on to Medicare, because you cannot be on the Penny plan past the age of 65 if you’re eligible for Medicare. Okay, so they’re gonna automatically kick you off. So, in those folks’ position, they need to start planning for Medicare in the three months prior to their birth month, because as soon as you have that seven-month window during the initial enrollment period. But for them, theirs is going to end at 65. They’re not going to have those three months afterwards because of, they won’t have health insurance otherwise, right? I mean, they can still apply during that time, but there’ll be a gap in coverage, and we always want to avoid that, if possible. So, (Avoid the gaps) for those folks, they have to, they need to start in the three months prior to and start applying for Medicare A and B so that they can get a supplemental Medicare plan paired with their original Medicare in time for their birthday. Or their birth month.

 

Steve Sedahl  24:22

Okay. Well, bottom line, there’s this can be a complicated process. Obviously, that’s why we do the show every week, to sort of cut through the, you know, the maze that is Medicare. And again, give us a call at 724-293-6653, you’ll get that comprehensive review from Lisa regarding Medicare. Helping you navigate that path. It can be tricky, we know. 724-293-6653, is the number. Don’t forget. You can get to Lisa’s book, The Ultimate Medicare Book, by visiting securehoneyhealth.com or medicarebookoffer.com. Go to medicarebookoffer.com sign up and get that book. Lisa, always a pleasure. Boy, this goes by quickly.

 

Lisa Lauro  25:00

It sure does. Same here. Have a wonderful week, and we’ll catch up…

 

Speaker 3  25:03

Investment advisory services are offered through Foundation’s Investment Advisors LLC, an SEC-registered investment advisor. The content provided is intended for informational and educational purposes only. The views, statements and opinions expressed herein are those of the individual speakers and are not necessarily those of Foundations and its affiliates. The information contained herein does not constitute an offer to sell any securities or represent an expressed or implied opinion or endorsement of any specific investment opportunity offering or issuer. Any discussion of performance or returns is not indicative of future results. Any discussions of specific strategies are for informational purposes only, and have been provided to help determine whether they may be appropriate for your specific situation. If applicable, the primary goal in converting retirement assets into a Roth IRA is to reduce the future tax liability on the distributions you take in retirement or on the distributions of your beneficiaries. Each individual investor situation is different, and any ideas provided may not be appropriate for your particular circumstances. Comments regarding a particular client’s experience may or may not be the same as another client’s experience, and is not an indication that any client or prospective client will experience the same or a higher level of future success or performance. Foundations only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. Registration as an investment advisor is not an endorsement of the firm by securities regulators, and does not mean the advisor has achieved a specific level of skill or ability. Nothing herein constitutes a recommendation that any security portfolio of securities or investment strategy is suitable for any specific person. No legal or tax advice is provided. Please review your retirement tax and legacy planning strategies with a legal or tax professional before transacting or implementing any strategy discussed herein. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products. They do not refer in any way to investment advisory products. Rates and guarantees provided by insurance products and annuities are subject to the financial strength of the issuing company, not guaranteed by any bank or the FDIC. This is not endorsed or affiliated with the Social Security Administration, any federal Medicare program, nor any US government agency, if applicable, we do not offer every plan in your area, and contacting us at the phone numbers provided herein will direct you to a licensed insurance agent. Any information we provide is limited to those plans we do offer in your area. Please contact medicare.gov, or 1-800-Medicare to get information on all of your options. All rights reserved.

 

Outro  26:57

Coach P Radio.