Financial advisors can help their older clients deal with the anxiety of medical costs by guiding them to re-shop their Medicare Part D plans, according to InvestmentNews.
One Program, a Variety of Premium Costs
The voluntary prescription drug benefit is available to all Medicare beneficiaries ages 65 and up, and for those under 65 who have permanent disabilities, the publication writes. The program also has an annual open enrollment period between Oct. 15 and Dec. 7, according to InvestmentNews.
But people rarely consider selecting another Medicare Part D plan once they’ve enrolled at age 65, the publication writes. And they should, because premiums for Part D plans can vary widely, according to InvestmentNews. The Kaiser Family Foundation found that among the top 10 plans by enrollment, average premiums range from $243 to $1,004 per year, the publication writes.
Meanwhile, higher-income earners, currently defined as those earning $85,000 or more as individuals or $170,000 or more as married couples, have to pay an additional income-related premium surcharge, according to InvestmentNews. In addition to the premiums for their specific plans, high earners will have to pay from $13 to $74.80 per month next year, the publication writes.
So it pays to compare plans. Advisors can guide their clients to first review the forms they receive in the mail in each September from their Medicare Part D plan provider or Medicare Advantage provider, according to InvestmentNews. They should pay attention to any changes to premiums, rules on coverage and cost-sharing, the publication writes.
Beneficiaries should then head to the Medicare website and submit the prescriptions and dosages to get a list of plans that fit their needs and their projected costs, according to InvestmentNews. and if they need help, advisors’ clients can either get free assistances from the State Health Insurance Assistance Programs or the Medicare Rights Center, the publication writes. Alternatively, they can pay a consultant, according to InvestmentNews.
