As if choosing health insurance under an employer’s plan wasn’t difficult enough, figuring out which type of Medicare plan is best for you is even more confusing. I call Medicare an alphabet because there are 4 parts- A, B, C, and D. Oh, and you might want to consider a supplement too!
Don’t worry. With a little time and some guidance, you can master the Medicare alphabet just like you mastered your ABCs!
First, let’s go through the four types and what they cover.
Part A only covers emergency care, such as if you need to stay at the hospital.
Part B covers regular care like doctors visits, bloodwork, and any other testing or treatment that your doctor recommends.
Part C is often referred to as an “Advantage Plan”. It is administered by private insurance companies, just like an employer’s plan. It includes Part A and B coverage and may include other benefits as well, such as dental, vision, and prescription drugs.
Part D covers prescription drugs. That’s it.
When you approach age 65, ask yourself what your current health needs are, what family history might impact future healthcare needs, and what type of coverage you are used to receiving. Then look at your budget.
Part A is free for those who are eligible through their tax contributions. In 2021, most individuals will pay $148.50 per month for Part B, although the amount can be higher depending on your income.
If you anticipate that you will need something more than just emergency and regular doctor’s visits, there is another alternative. Consider a Part C “Advantage” plan or a Medicare Supplement (or “Medigap” plan), instead. This plan will provide coverage for those things that Parts A and B don’t, like such as prescription medications, dental, or vision care. Keep in mind that you still pay co-pays and deductibles on Medicare, so you will want to look at those amounts and not just your premium when considering your budget.
When thinking about the Medicare alphabet, I have a little way to help me remember what each part covers:
A is for an Accident that lands you in the hospital
B is for Bloodwork they do at the doctor’s office
C is for Comprehensive coverage you can get with an Advantage plan
D is for Drugs (They made that one easy!)
Now you know your ABCs….next week I hope you’ll join us when I share my favorite FREE resources to learn about Medicare before you sign up.
Have you ever thought about what you want to happen to your “digital assets,” including your Facebook page, after you pass away?
This is a question that Big Tech giants have spent the past few years grappling with as more and more of our lives are lived online. As such, companies like Facebook have started developing solutions to help account holders more easily “pass on” their digital real estate to loved ones and friends following their death. “Legacy Contacts” is one such feature that permits this to happen on the platform.
Until the creation of the Legacy Contacts, loved ones of the deceased only had two choices to manage an existing Facebook Account:
Leave it a public wall (that no one had “behind the scenes” access to) where people could continue to post messages; or,
Request that the page be “memorialized,” which rendered the profile invisible and unsearchable to those who were not already connected with the account.
Now with the Legacy Contact feature, Facebook account owners can name who they want to manage their profile in their absence. This “heir” would immediately have access to friend requests, pictures, and the management of content on the profile page.
Or, for those who want their Facebook account to remain private, the Legacy Contact feature also gives users the option to request a full deletion of their account after death.
Type in a friend’s name in Choose a friend and click Add.
To let your friend know they’re now your legacy contact, click Send.
To change or remove a legacy contact, follow steps 1–2 above, then click Remove. From there, you can add a new legacy contact if you’d like.
If your account is memorialized, your legacy contact will be notified. Learn more about what a legacy contact can do. Note: You must be 18 or older to select a legacy contact.
Utilizing Legacy Contacts is an easy and straightforward way to let Facebook know how you want your private social media information to be handled after your passing. If you have any additional questions about how to include your digital assets as part of your estate plan, please contact our office to schedule an appointment.
There are many options available to seniors who would like access to liquid assets, and reverse mortgages are one of the most common – and misunderstood. Our Nashville elder law attorney has outlined everything you need to know about reverse mortgages, so you have the information you need to make the best choice possible.
What is a reverse mortgage? A reverse mortgage is a financial tool available to older adults aged 62 and older who own their homes. It allows them to use their home equity as collateral to receive a lump sum, line of credit, or annuity to receive money. This makes the homeowner the borrower and the bank the lender, which means that interest will need to be paid on the monthly repayments to the lender.
When is the reverse mortgage loan due? Typically, the borrower is responsible to make monthly payments to the lender until the amount that is borrowed is paid back. However, there are certain circumstances where the entire amount of the loan could be called for immediate repayment:
The borrower lives in a different primary residence. You must live in the home if you have a reverse mortgage, even if you still own the home. The lender will call the loan due if you rent out the home or move out for any other reason.
The borrower does not live in the home for 12 consecutive months due to health reasons. A senior suffering from health conditions who moves into a nursing home must move back to the home within 12 months, otherwise, the loan will be due.
The home is sold. The loan will be called due if the borrower either sells the home or transfers the title of the home to another person who is not also a borrower of the reverse mortgage.
The borrower passes away. There are cases where a non-borrowing spouse may be able to remain in the home after their spouse passes away, but certain conditions must be met. It’s best to speak with an experienced elder law attorney to find out how to avoid leaving the house if the loan is called due upon the passing of a spouse.
The loan agreement is breached. Reasons for a loan breach included non-payment of property taxes, a lapse in homeowner’s insurance, or if the house falls into disrepair.
Obtaining a reverse mortgage could be beneficial in certain circumstances, but there are a lot of different issues you should be aware of before you take out this type of loan. It’s best to consult with an elder law attorney who has experience with reverse mortgages to find out if it is the best solution for you.
If you’d like to learn more about reverse mortgages and how they can impact estate planning, or if you have a reverse mortgage and want to have your existing estate plan reviewed, please contact us at (615) 846-6201 to set up a consultation with our Nashville elder law attorney.
National Healthcare Decisions Day is on April 16th, and it’s an important reminder for every adult to begin having conversations with loved ones about their most private wishes for medical and end-of-life care.
Far too many people assume that their families would make the choices they would want in an emergency. Yet every day we hear stories of adult children, siblings, or other relatives battling during a healthcare crisis over “what their loved one would have wanted” in that situation.
Incapacity Can Happen at Any Age
The coronavirus pandemic has been a reminder to all of us that illness and even incapacity can happen at any age. Over the past year, many adults, for the first time ever, expressed their thoughts about being placed on a ventilator and/or receiving experimental medication should they become seriously ill with COVID-19.
But planning must go beyond an initial discussion. You must also clearly and legally document your preferences, as well as choose an “Agent” whom you trust to make such decisions if you are unable to speak for yourself.
Documenting Your Wishes Takes Pressure Off of Loved Ones
Remember, emotions can run high during a healthcare crisis, and it might be hard for your loved ones to stop life support, for example, when they desperately want you around. Having your wishes spelled out in writing helps provide guidance during a stressful time and makes these types of decisions easier for your loved ones, especially in cases when other family members don’t agree.
How to Start “Tough Conversations” About Medical Care
In honor of National Healthcare Decisions Day, set aside time this month to have conversations with loved ones about your personal preferences for medical or long-term care. Here are some important issues to consider:
Whom do you trust to make medical decisions on your behalf?
How do you feel about feeding tubes, life support, and other artificial life-saving devices?
Is there any type of medical care you would NEVER want?
If you were permanently disabled or incapacitated, what would contribute or take away from your quality of life?
What are your thoughts on nursing home vs. in-home healthcare?
How would you like your family to pay for the care you may need if co-pays become excessive or insurance does not cover your treatment?
We love The Conversation Project for guides to help families have these hard, but important, conversations.
A Final Consideration About Your Choice of Healthcare Agent
One final point to consider when documenting your wishes and choosing a healthcare agent that will ultimately carry them out is that the person you nominate should want to have this responsibility. There are people who do not want or cannot handle making medical decisions– even for their own spouse.
Remember, if the time comes that the healthcare directive needs to be used, it is going to be a very stressful and emotional time for this person. Are they up for the job? Do they want the job? Take the time to have an additional conversation with whomever you are considering ensuring that they can, and are willing to, make the decisions that you would want in a crisis situation.
