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Lawley Medicare Solutions Learning Center:

Ask Janell!

 

QUESTION: I just got a call about my new Plastic Medicare card. How will this be different from my paper one?

 

ANSWER: This is a very common call and there is NO new Plastic Medicare Card! This is just one of the scams in which callers try to get your Medicare Card ID number from you. Very often, the individual on the phone know a lot about you. They can tell you your name, address, and sometimes even your date of birth. What they want is your Medicare ID number. DON’T give it to them. Simply hang up. Again, there is NO new Plastic Medicare Card.

There is NO new Medicare +. This is another type of scam call telling you that you are eligible for a Medicare + card. This ‘plus’ sign after your Medicare ID gives you additional benefits. These additional benefits could be some of the many advertised on TV, like hearing aids, gym membership, or Over the Counter products (OTC).
Again, there is NO new Medicare +.

Another scam call will tell you that you are eligible for a piece of medical equipment, like back brace, oxygen concentrator, or new walker. They will tell you that in order to confirm delivery of this new piece of equipment, you simply need to verify your address and Medicare ID. DON’T give it to them. Simply hang up.

Most of these calls ask you to “verify your Medicare ID.” This sentence makes it sound like they already know the number, but they don’t. If you didn’t talk with your doctor about getting these types of medical supplies, they wouldn’t order them. Many of these supplies require steps before the order, so you would know that you and your physician were working towards ordering them.

The individuals that call can be very persistent, I have heard of them bringing a second person on the line, “a supervisor” to make you feel more comfortable with the request. This supervisor then tells you why you are being called, again trying to get information they claim to already know. They are both scammers trying to solicit your Medicare ID. DON’T give it to them. Simply hang up.

When you get that phone call about your Medicare coverage, or someone saying they are calling on behalf of Medicare, my advice is to hang up. If you speak to them at all, ask them to send you material in writing. NEVER give them any information about yourself, or your Medicare ID number.

The Centers for Medicare & Medicaid Services (CMS) will only call you because you called CMS to report a problem, file a grievance, or something similar. CMS staff will not call an individual unsolicited. CMS will mail you information, like your Medicare Card, the Medicare & You handbook and Medicare Summary Notices (MSN). You get a quarterly bill from CMS for your Medicare Part B premium if you are not collecting Social Security Benefits. But CMS will not call you to talk to you about your Medicare Benefits.

If you feel you have gotten one of these calls and gave out your Medicare ID number, please call CMS at 1-800-MEDICARE (633-4227).

One of the features of the new Medicare ID is that it can be changed. If your ID number is compromised, CMS can simply issue you a new number and send you the new card. Once your providers have the new information, they can begin billing Medicare covered services with the new ID information. This is now very similar to your credit cards, in your ability to protect yourself and the Medicare system.

My advice continues to be don’t talk to individuals whom you don’t know. If you have an answering machine, let that pick up and then if it is someone you know you can answer the phone or call them right back. If you don’t have an answering machine and it is someone you don’t know, hanging up is the best action.

Our team of licensed professionals is here to guide you through the complexities of Medicare Insurance. We can help you understand and avoid spam, misinformation, and risks associated with unsolicited calls. Feel free to reach out with any questions or concerns you may have.

 

Read all Inside Medicare articles HERE.

 

LAWLEY HAS A TEAM DEDICATED TO MEDICARE INSURANCE!

Our licensed Medicare & Individual Health Insurance team can help clients understand the details of Medicare insurance plans, assist with choosing the right benefits and coverage, and provide guidance when life events that affect health coverage occur.

For questions, concerns, or to reach Lawley Medicare Solutions, fill out the contact form below or call 716.849.1540.

Lawley Medicare Solutions Learning Center:

Ask Janell!

 

QUESTION: My friend told me that when I turn 65 and have Medicare, I can no longer have an HSA. Is that correct?

 

ANSWER: First, an HSA is defined as a Health Savings Account. This is an account that allows an individual or family to save pre-tax dollars to use for paying qualified medical expenses. HSA’s are managed by a bank, credit union, or insurance company. Individuals in a High Deductible Health Insurance Plan (HDHP) are allowed to establish an HSA.

When you (and sometimes your employer) adds money into this HSA, it is pre-tax. You have NOT paid income tax on the money. This allows you to save money on taxes and save to pay for medical expenses down the road. In 2024, the maximum amount you are allowed to put into your HSA is $4,150 for an individual and $8,300 for a family. If you are over 55 years of age, there is an additional $1,000 you can contribute each year to your HSA.

The money in your HSA is YOUR money, it can’t be taken away from you…and it doesn’t need to be spent by the end of the year. The HSA continues to grow as you add to it and is available to you for medical expenses for the rest of your life – before Medicare, and even once you start Medicare. An HSA offers you an opportunity to save pre-tax dollars to pay for future medical expenses.

The question is whether turning 65 and being eligible for Medicare affects your HSA. Once you are eligible for Medicare AND sign up for Medicare, you can no longer put NEW money into your HSA. So, this is one distinction that’s important to understand for when you are about to turn 65…you can still use your HSA money after you have Medicare insurance, but you cannot contribute to it.

If you are eligible for Medicare insurance, but do NOT sign up for either Medicare A or B, then you CAN continue to contribute to your HSA. Once you enroll in Medicare A or B, you can no longer contribute to your HSA. The money in the HSA is still your money to use at anytime , but you cannot put in any new money once you have Medicare A or B. If you are married, you can still contribute on behalf of your spouse, but only to the individual amount of $4,150. This rule change happens the first of the month that you turn 65.

In planning for Medicare eligibility, you must decide about Medicare insurance and your HSA contribution. Your contribution can continue up until you are 65, but you cannot put in a full-year lump sum that year, it would be a pro-rated amount, month by month, up until your birth month. Then, you will not be allowed to make additional contributions.

So, “What can I use the HSA money to pay for?”
The money from an HSA can be used to pay for many of the medical expenses that you incur. The IRS list of Qualified Medical Expenses is a very extensive list. The IRS complete list can be accessed at http://www.IRS.gov.

Some examples are:

• Doctor and medical expenses, (i.e. hospital bills, ambulance rides, and blood work)
• Health insurance premiums, long-term care insurance premiums
• Hearing aids and batteries
• Smoking cessation programs
• Eyeglasses and LASIK eye surgery
• Weight loss programs, prescription drugs, and medications
• Nursing home care
• Guide dog
• Drug addiction
• Dental care (including braces, dentures, fillings, and oral surgeries)
• Chiropractor and acupuncture

If you have a HDHP and the opportunity to have an HSA for yourself and your family, I would strongly encourage you to contribute to it. Talk to your employer and see what the rules are for your situation and an HSA. This could be used for the overall and long-term financial health of you and your family.

 

Read all Inside Medicare articles HERE.

 

LAWLEY HAS A TEAM DEDICATED TO MEDICARE INSURANCE!

Our licensed Medicare & Individual Health Insurance team can help clients understand the details of Medicare insurance plans, assist with choosing the right benefits and coverage, and provide guidance when life events that affect health coverage occur.

For questions, concerns, or to reach Lawley Medicare Solutions, fill out the contact form below or call 716.849.1540.

Lawley Medicare Solutions Learning Center:

Ask Janell!

 

QUESTION: I am currently working, but will be retiring. I will need COBRA insurance until I turn 65. My wife has Medicare Part A with Social Security Disability. How does COBRA impact my wife’s insurance coverage?

 

ANSWER: The Consolidated Omnibus Budget Reconciliation Act (COBRA) is insurance that allows individuals to keep the insurance product they had while working. COBRA is available to purchase for 18 months and sometimes up to 36 months. The insurance policy is the same policy as you had while working, but you pay the total insurance premium without help from your previous employer. Often individuals appreciate the COBRA policy because it is the insurance product they are used to.

Original Medicare Part A & B is insurance that is available to those 65 or older and those younger than 65 on Social Security Disability.

Those who are eligible for Medicare sometimes want to hold off enrolling due to other insurance product options they have available to them. This is ONLY advisable if you have insurance provided by a current employer. COBRA by definition means you are no longer working. COBRA and Medicare are rarely useful at the same time.

You may be on COBRA after your employment ends, but once you are eligible for Medicare, you should enroll in Medicare A & B. For you, enrollment in Medicare would mean that you drop the COBRA. There are many high-quality insurance products for you to use with your Medicare that will cost less than your COBRA.

Your wife has a different situation. She has Medicare Part A right now and your current employer’s coverage. She will need to enroll in Medicare Part B and find additional coverage once your employment ends. In her situation, COBRA is not the best option. Once enrolled in Medicare Part B, she will have many other options available to her. Her coverage would be Medicare Part A & B plus other products that include Prescription Drug coverage. Her coverage would be individual coverage only. So you and your wife would have different insurance coverage.

I occasionally run into someone who delays getting into Medicare because they have COBRA. This is a serious mistake. If you miss your Initial Enrollment Period (IEP) when you turn 65, or the Special Enrollment Period (SEP) because you left work, you can’t enroll into Medicare A & B anytime you want. And when you do join there is a premium penalty of 10% for each 12 months you were eligible to enroll and did not. This premium penalty is a penalty you pay each month for the rest of your life. Another concern is that when COBRA catches up with the fact that you should have enrolled in Medicare, they may NOT pay your full claims because they should have been secondary to Medicare. In this situation, COBRA will not pay more than 20% of any claim because Medicare would have paid the first 80% if you had been enrolled.

A related question is: what about Medicare Part D, the prescription drug coverage portion of Medicare? If you have Medicare A or B, you must have Prescription Drug Coverage. The coverage could be a Medicare Part D provider, an employee plan, a retiree plan, COBRA, or the Veterans Administration.

If you have COBRA and are close to the opportunity to enroll in Medicare please do NOT put off enrolling in Medicare. Research your options for Medicare coverage. You could enroll in Medicare Part A & B and KEEP your COBRA coverage. This is probably NOT the most cost-effective coverage for most individuals.

Health Care Reform and the Affordable Care Act means that all individuals are eligible to get Health Insurance no matter what their age or situation. Please be sure to review all options (like the New York State of Health Marketplace) for insurance before you decide to keep your COBRA policy. You don’t necessarily need to be paying those really high COBRA premiums if there are other options available to you. To talk with someone about the Affordable Care Act plans, I recommend seeking a Certified Navigator.

 

Read all Inside Medicare articles HERE.

 

LAWLEY HAS A TEAM DEDICATED TO MEDICARE INSURANCE!

Our licensed Medicare & Individual Health Insurance team can help clients understand the details of Medicare insurance plans, assist with choosing the right benefits and coverage, and provide guidance when life events that affect health coverage occur.

For questions, concerns, or to reach Lawley Medicare Solutions, fill out the contact form below or call 716.849.1540.