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July 24, 2021 8:30 am
Medicare enrollment comes with a lot of deadlines and timelines paired with penalties and taxes if you miss these. There is no reason to fear Medicare penalties, and we can assist to determine if your group coverage is creditable.
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This is Chris Hughes with the Christian perspective podcast with Chris Hughes. We encourage our listeners to engage the culture with Jesus Christ your chosen Truth Network podcast is starting a just a few seconds.
So enjoy it share but most of all, thank you for listening to The Truth Podcast Network. This is the Truth Network welcome to finishing well brought to you by Cardinal guy, certified financial planner long shy best-selling author and financial planner helping families finish well over 40 years of finishing well will examine both biblical and practical knowledge to assist families in finishing well, including discussions on managing Medicare IRA long-term care life insurance and investments and taxes. Now let's get started.
Finishing well, finishing well is a general discussion and education issues facing retirees guide.com are no advisors.
I'm sure I'll see if Pete insurance this show does not offer investment products or investment advice. We have a somber topic to talk about today on finishing well Medicare penalties. You see, Bob Newhart would tell you to stop it you know and I would because the you know Jesus had a word for it. In fact, first John one of my favorite verses actually in the Bible. First John 418 it says perfect love drives out fear, because fear has to do with punishment, and when you think about punishment is like a penalty like oh my goodness, Medicare has penalties well again.
Perfect love drives out fear, because fear has to do with penalties in the one of the penalties that obviously gets driven out. If you're Christian in the perfect love drove out to me. Ponce was the fear death itself, which is the ultimate punishment the ultimate penalty they take out the field.
Your game but in Christianity right to be better. We most fear that we experience. It's all the same music as is bad fears, crippling fear now not just fear but the same as every other fear that my whole life, sit here and denied on the says we have people like to call sub by watching videos listed on the radio.
You hear the people we want to buy Medicare insurance from get the Medicare consulting and so go you know and then we start talking to him and explain Medicare part a and part B and that they won't let us. That's about those penalties is only those penalties and I can just hear it in their voice everybody but a number of people to read just enough they read the word penalty and their terrified and the good news is that the truth will set you free. And so what we went there penalties their real and end.
Death is real as well. But you know the truth will set you free, and were hoping that by listing today were not set you free of the fear penalties. Realizing there is you know I love what you said earlier actually put preparing for the shower she say you know 99% of our clients are good law abiding wanted to live by the rule. Young people and if you do that you have nothing to fear.
This system will you don't insult.
Look, let's Coke. Why do they have penalties in the first place. The trying to punish you for not understanding this stuff and making the wrong decision. No, what they're trying to do is influence people's behavior, especially the healthiest people as if people are just skip all the stuff and they just don't sign up for Medicare sound for any of it when they're supposed to, and usually those people are pretty healthy people that have allowed illnesses there at the front of the line 6 months before they turn 65 and they're all ears of their signing up because they know they need to stop see the government wants those people to sign up. They know those people are to sign up there and start claimant right away, but they want everybody is supposed to sign up 500% of my senses. They want you when you turn 65 to sign up for Medicare part B and if you don't they're going to penalize you when you want later and they really want you to know how these things work. Now there's some exceptions to the penalty and the biggest one is that you don't need Medicare because you get group insurance at work, so the Medicare would also like boy if you can stay in your group insurance and let them pay your medical bills for a while in the retirement. We'd rather have that than have you sign up for Medicare and we have to pay your medical bills so governments just fine with you not signing up for Medicare part B if you got group insurance or your spouse's group insurance and you got basically say on all covered.
I'm just stay here and love above all the will. They're later going to give you an exception to the pelt just about anybody else.
If you don't sign up when you're 65 for part B, you don't sign up for part D at 65 which was the drug plans. Those two things start paying the premium that you're supposed to pay for that and then you later wanted. They're actually going to make you pay to penalties one penalties in the form of money your pay him a monetary amount and once those penalties monitored penalty start. They last for life. Once you assess the penalty you're still going to Panera 95. Even if you are assessed at 70 every month with the second type is then I can let you get on it right away. You want to go just giving you the example like Robbie turn 65. Last October, and he's been on Medicare now about 789 was that he did the right thing. He signed up for part B and part D.
Let's pretend he didn't and he sees through the open enrollment.
He's got no Medicare part B and all of a sudden you get sick here in July. You say man, but I made a mistake. I want Medicare how much is my penalty can be a civil monetary penalties. The least of the problems you got because you can't even tell them you want to sign up until January next year. You have to wait six months until January to March. That's the enrollment period for people that didn't sign up to now want to sign up for B, then the coverage once they approve you doesn't start till July.
The next you're sick if you made this decision even this close to it. The dollar penalty of a monetary penalty small. It's the year you got away when you really want it now. You can have. Also, there's another little tidbit that I want to throw in there and not confuse things but just to give people a reason why the product. I listen so that you can understand these things. This really believe that it's information that you need to know is that even if you have group coverage, it has to be right and you don't sign up for Medicare and use a lot got group coverage. I'm good if that had I'd be credited to a bowl creditable is not credible is creditable that some standard that Medicare came up with the third and evaluate your group insurance and they're going to say yeah he gets a freebie on the penalty because his group insurance is creditable and you want to get into some complex, so if you're anywhere near the line, you need to go and sign up for part B, but those of the things that people can come for us. We we can look at your group insurance in about 15 minutes.
We can tell you whether it's creditable or not and whether you're gonna fall under one of these exceptions. If you don't just sign up for Medicare part B right but you actually have a case for people had recurrence, and the penalties a lot of times these are wealthy people know is my experience that wealthy people they just can't sleep through some of these enrollment.
You know why they do that is because they can mean there just is a wealthy and so they keep their group insurance. The people at the office. In this business, they still own and they're just kind of above it all until years later, they get sick and then they have to apply for Social Security because her 70 and that you have to plant 70 and that's is exactly people very well-to-do and they're very tidy and neat. I got this I do see some help with their money as well so I'm in all their business but with Medicare is scripted and so then you been doing for health insurance for the got this individual coverage paid for through the business that they just kind of thrown together several years ago. It's not creditable coverage. So now we had to get them on Medicare part a part B lay had to go through all these waiting. Where were they hot and by then this individual coverage is cost of each over thousand dollars a month there painted other business. They were just kind of asleep at the wheel. I was dealing with. So they had to pay that that whole time until Medicare part B would start. Then they had a delay in Medicare part D and then they got this big penalty assessed on the penalty each year you skip your part B premium goes up by 10% and that's for life. So if you these people skip six years, so she had a 60% increase in her part B. Heat skip like nine years because he was 74 at the time so he had a 90% increase or has a 90% increase as part B premium. He's paying that until he leaves this earth that that dollar and has enough for both of us have a lot of money. That's a big bunch limitation. These people are hot about that you filed appeals. Now that they understand what went on, they take them, take any responsibility or matted somebody else is kind of unnamed who didn't do whatever they were supposed to do, and inform them and they're just really upset about the family. There is nothing they can do about and talking to me about it in an angry way is not a good move either. I just tell him straight up. There is an end so you know it's kind of important for all of us to know that wow when you turn 65. Like you, and you know somebody turned 65 this is something that has to be attend isn't like wealth door you got coverage well is your coverage credited that the ball is is what you have going to work and how you might make absolutely sure because again my Medicare premiums are 400 and some odd dollars every quarter and you can imagine that times two would be 800 and some I don't know that's a lot of money, but what it's a lot of money in the ears of them into even if you pass 65 and you didn't sign up in your now all of a sudden we got you worried about a new thing. That's all we do is we had worries to a lot of people through the show and we meet with Miss not over trying to do but so so what what if your 68 you're still working for his demand.
Listen to the show on Saturday morning and now this guy tells me that my coverage need to be creditable and wet. I don't know.
Is it what the government doesn't have the creditable police so you know most of the time we could just check the box that says you had health insurance or we can take the form to your employer and have them sign off that yeah you have the coverage and there also. So I'm just saying is, it is pretty easy to unit were not misrepresenting ourselves or tell him why would just fill out the forms and sentiment of the government signing up for part B late in trying to get out of the penalty that usually works. Just check in boxes. Some Medicare penalties today on finishing well only want to finish that penalty is brought to you by Cardinal Dr., Cardinal guy.com and on the Cardinal guy planning for and living in retirement that we think you need to know when Medicare Hans and I would love to take our show on the road to your church and Sunday school Christian or civic group. Here's a chance for you to advance the kingdom through financial resources and leveraging Hahn's expertise and qualified charitable contributions veterans aid and attendance and IRA Social Security care and long-term care. Just go to Cardinal guy.com and contact Tom to schedule a live recording of finishing well your church, civic group, contact Tom, the Cardinal guy.com that's Cardinal guide.com welcome back to finishing well certified planner Hans Schild today show Medicare penalties sounds like kind of a bummer but actually I think once you understand what's going on that you can certainly not have to deal with them and I have the huge benefits of having Medicare.
So here's the good news. Most people are on Medicare dumping as they just do things right right and then some of the people that would pay penalties we can help them navigate and perhaps get the government to remove the penalty or not charge him in the first place. When it's a judgment call. So part of our job as I view it in teaching the people that are listening to us about all of the subjects is really just talking about the facts of the situation and unfortunately so many people that do what I do. That's all they talk about a religious drone on.
If you going to YouTube and you look at some of the people. Other people talk about the same things I just go through this. It's kind of boring and I think that people just tune it out but if I have a fault. I probably skip over the details too much, and that's part of making what giving you the details and putting some context around this is part of what is going to make people less concerned about, which is what I want to do so with Medicare yet for parts of Medicare part a is your hospital.
Yet, part B, which is your medical doctors and outpatient part C, which is really not a completely separate part. It is taking your ANB and then turning it into a part C, which is means that you outsource your insurance your Medicare unit take it away from government delivery system to having an individual insurance company doing subpart C is really a combination of part a and part B in your receiving your benefits from insurance company and then you got part D, which is the drugs and that's just I think by coincidence that these drugs because the fourth part of Medicare so there are no penalties assessed on part a and part C.
The only penalties that exist are on part B and part D medical drugs and of course they have to be different to close their different to the part B penalty is you pay an extra premium of 10% for every year that she didn't have coverage that you should like an example we gave earlier.
If you had to wait a year, you pay a penalty for that year to actually get so if you were five years without it and then you got it in your assess the penalty you pay 50% more than ever when you otherwise would have been pan. Pay that for the rest of your life life and then on part D drug plan. If you fail to enroll in a drug plan when you were supposed to, which is 65 when your group coverage ended, creditable coverage, you pay 1% penalty for every month you didn't have it.
That should special 12%. I'm sure there's a government committee bear precedent-setting arguing about this. Somebody must've been going well, at least make it the same so that people could understand it but it's just a little bit different with 1% a month and stacking is not compounded, which would be 12% a year. So she went five years with no part D then wanted God, it you would pay 60% extra and you would pay that for life and it also apparently from what I understand works if you do cancel your apartheid so you had part D and he went mom second premise we have people to do and for every month that you let that lapse touching 1% more when you go to sign up again right for every month you let have you think. Boy if there's any wealthy people is another cement I'm never going to call month because I was telling it's the wealthy people to do. It's not sycophantic they're just sick of the whole system so they they think that's the way they're going to get in on check out. I have what I mean.
I just to these people pop into my mind this guy is a good friend of mine and he was in the insurance business forever said he really thinks he understands. He just had this part D made him so upset that he he's called insurance company can't stop all just get it somewhere else where there is no somewhere else other than the government because her insurance covers act on behalf of them. We had to get them back on. He's paying a little bitty penalty because he was only offered for like two months is open enrollment was coming around the sick. He's got this little bitty penalty tacked on it.
He didn't even notice he's forgotten about. We have some people can really big penalties on the part D they just never enrolled in the system us and nobody told me to do one taken any drugs you know okay but you're now you want to get it in the government wanted you the person taken no drugs to pay into the system. In case you need them in the future. So the things that's part of which God realizes that not only I was because it works the same way with part B if you know quit making the payments on matter whatever the situation may be delayed due to same thing when again new risks and consists come up under think I should be so hard on Richmond is a number of them are just my best clients and even his people and talk about.
I have a lot of very wealthy clients. I shouldn't be talking bad about the they do a lot of things because they can because they got a lot of money and note the consequences that this or not so severe to them and then they got me and I cannot get him out of it or get it fixed or do whatever but this is some you just really don't want to mess around with you just want to get signed up for B get signed up for the just send them they can take both of these premiums onto your Social Security check a few goodness of Scripture and in these cases love these people in one do that they they want to pay bank draft, but I would recommend just to make sure this doesn't get collapsed. You know when you're 85 or something and just forget to open the envelope or do something with the bank having deducted from your Social Security check.
Get signed up on time and then you just you going to call me up and complain about that, but at least we know the premiums paid to the government and the good news is it just changed it. If you like me and that don't have so security at Reitman's on Pam for my Medicare and it used to be. You had big quarterly when elected or not and it was not you had to send it in an alley got a deal. They just started it and I love their newest ones where they literally taken on your checking account every month just for one month and I just don't like. And I don't have to concern myself with its scope are missing the pay metalwork printing.
The lady that I am thinking about part D penalties. She's been on and off twice going. I didn't know this till you told me this, you can now pay your part B and part D premium monthly instead of quarterly pain. The government directly. That was her boy was she hot about a course she just didn't send it in and then the ones you don't send it in.
Now you getting these bills here in arrears. She didn't send them either and she went a long time without without drug coverage and then took a stroll get him back in and assess the penalty that she did it again and it was all over the quarterly premiums, and so my brother has now set up for her. It's coming out of her Social Security check, but that took that took some doing to to get her to agree that and what's coming out of there is a regular premium +2 penalties this count up the Monsen government account up to.
That's your pelvic your turning 65. There's an opportunity or you know someone is turning 65 right. I have a couple friends house like counseling and about Medicare. I worry about it. Like David, you need a word like now. I like MSO that I don't need that and I'm I'm helping 000 yeah, you need to mess with it.
If this is that you just let slide because you know there are these penalties and and and it's amazing to me.
There isn't some big news flash that comes out and says hey when you turn 65. This is a critical situation need to do that if your collecting a Social Security check under 65, which now were limiting some people miss a smaller group. If you get a Social Security check. They will just mail you a Medicare card and sign you up for party in part because they are assuming a retired and that be you need groupings you need insurance so you sign your frame be didn't save you a word about the you just there just thinking you're gonna figure out you need D as well and they also don't say a word to you about each supplemental coverage.
This Medicare all by itself is not enough you need. Take a look at a Medicare supplement and get a part D point and that's really a big part of our businesses serving people that are turning 65.
Do it all over the country and there is no nano that there it happens and you can see that like wow, one month later, your partner, you Artie got a penalty and you barely breathe at it.
It's come action and so how do they do that don't give you like a six month grace period or something a Medicare on the Barbie to sign up right, you need to sign up within seven months of the month was three months before the month of and three months after so there's there's there's there's a. Were you cannot assign out 90 days yet it's more like 90 days. That's right, I can't even have that stuff memorized, as I'm just out, don't do it. I mean, you can't stop it. When we do get some people to call us you know where they turn 65. Back in May and so then I went to go read up on a drama got the tom-tom has all the stuff just to sit right here you tell us exactly but this week we've gone in on the 29th of the month where we get one more day to get people signed up and then working to going back one of the Medicare website or call and again all forever and sign up will will do that for people if they're nice people calls up all angry about that. I'm always wondering about that your people are all mad at the system and then in turn in on us and then, but we still help those people too. We pray for Mac is the scary part is I say you know it is 90 days and I think you're right because we could go three months before and three months after Siegel five months into this right you that you to you turn 65 in October and you wake up in March and out man I should've done something then boom you got number one. You gotta wait a year, well actually in March. You could still get away with a application that would start July, but if you change your story around a little bit and it was April. Now you have to wait more than a year because you have to wait. From April to January to even apply.
Need apply in January and it would be July 1 when start see if we just move that little story one month via like a 15 month waiting period. So there's a little bit of luck of the draw. This is her bad luck of the draw. So don't do it is nonetheless a work request. Don't risk it is a better way for that. Don't risk it. Then again you can go to Cardinal guide.com you can email Hans you got questions.
Well here's my date. Here is my situation. You can see that's really what is therefore an his book the complete Cardinal guide to planning for living retirement all their Cardinal guide.com if you didn't get to hear all the show ghost go back and listen to podcast like it Sharon all that stuff. And thank you again Tom you and is Hans this time not Tom finishing well is a general discussion and education of the issues facing retirees Cardinal guide.com Cardinal advisors upon trial CFP some insurance this show does not offer investment products or investment advice. We hope you enjoyed finishing well brought you by Cardinal guide.com visit Cardinal guide.com for free downloads of the show previous shows on topics such as Social Security, Medicare and IRAs long-term care life insurance and investments and taxes as well as cons best-selling book, the complete Cardinal guide to planning for and living in retirement and the workbook once again for dozens of free resources past shows to get Hans book go to Cardinal guide.com if you have a question, comment or suggestion for future shows.
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