Al Smith kicks off this enlightening episode with a historical perspective on U.S. elections before shifting focus to a pivotal discussion on healthcare for retirees. With guest expert Mary Arambel, they navigate the myriad of options available during Medicare’s open enrollment, underscoring the financial and health benefits of making informed choices. Discover real-life stories of families benefitting from strategic plan selection and learn how to leverage Medicare for optimal health coverage in retirement. A must-listen for anyone concerned about retirement health costs and coverage options.
Welcome to Retirement Unpacked with Al Smith, owner of Golden Eagle Financial. You want a retirement plan that alleviates your fears about the future so you know your money will last. As a chartered financial consultant, Al Smith will help you find a balance between the risk and reward of the market and the safety of your retirement income. And now, here’s your host, Al Smith.
Al Smith (Host) :
Welcome to another program of Retirement Unpacked. Now that you’re not working for the company anymore, give my office a call because we can have a conversation and dig deeply into what you want your retirement to look like. My number is 303-744-1128. And before I dive into today’s topics, we just finished a national election that occurs only once every four years. And I’m going to throw out some information that you probably didn’t know about elections. For example, did you know that senators used to be elected by the state senators in each state? They weren’t elected by the populace. And this occurred for quite a period of time. And because of what they perceived as too much power within the state senates and so forth, the 17th Amendment was passed. And basically, all they did to change the language of that is instead saying senators would be chosen by the state legislature. They said senators would be chosen by the people of each state. And something else, we have gotten used to the donkeys and the elephants, and you’re probably thinking, well, where did that come from? Andrew Jackson, when he first ran for president, he got the most electoral votes, but the rule was, back then, that there had to be a clear majority, which he didn’t have, even though he had a higher amount of electoral votes, and as a result, the president was appointed by the House of Representatives, and that ended up being John Quincy Adams, who’s also the first president that was ever photographed. And then, in any event, Andrew Jackson ended up forming his own party. He formed the Democrats, and he was also made fun of quite a lot. They called him a jackass. And that is where the donkey image came from by a cartoonist or an illustrator named Thomas Nast. He also created the elephant, which came from the Civil War when the expression was, we are seeing the elephant, which was another terminology for Civil War images. participants when they were experiencing combat. So that’s where the donkey and the elephant came from, the cartoonist Thomas Nast. And that goes way back, more than 150 years. Now, you’ve probably already heard that Trump being elected to two non-consecutive terms has only happened once before. Well, here’s what happened to Grover Cleveland in 18… 84, beat James Blaine in the general election. Grover Cleveland was a Democrat. James Blaine was a close race, but he beat him in spite of a sex scandal. So those are not new. Those have been around for a long time. He was supposedly fathered a child out of wedlock with someone named Mary Halpin. And under strange circumstances, she was put into an asylum. And Grover Cleveland served that first term. And then for his second term, he lost that to William Henry Harrison. And he had a rematch in 18, that was in 1888. Then in 1892, he had a rematch against Henry Harrison, at which time he beat him. So that is the only other time then right at the present when anyone has served two terms as president that are not consecutive. The bulk of my program today, we’re in for a real treat because I have with me Mary Arambel, who specializes in helping people with health insurance, especially coverage that goes along with people’s Medicare. And right now we’re in open enrollment. Mary, thank you for coming. What would you say is the most important thing people have to pay attention to now that we’re in open enrollment?
Al Smith (Host) :
Thank you, Al. It’s a pleasure to be here today. The annual enrollment period for Medicare enrollment started October 15th and is running through December 7th. And there’s big changes this year in Medicare prescription drug plans. And it’s called the Inflation Reduction Act of 2022. And President Biden signed the Inflation Reduction Act into law at August 16th of 2022. And it has positive effects for Medicare, including lowering consumer drug costs, expanding benefits, and stabilizing prescription drug plan premiums. So this year it’s very important people take a look at their notifications of their existing plan and look at the prescription drug programs because there’s improvements and there are increase in premiums. So it’s important for them to look at that as well.
Al Smith (Host) :
Well, what if someone just is on Medicare and they have either a supplement or Medicare Advantage? What’s the disadvantage of them just saying, I’m tired of all of these commercials, I’m just going to keep what I have?
Al Smith (Host) :
If they’re comfortable with the program that they have, it will just roll forward, most likely. The premiums may be increasing, so they might be surprised about that.
Al Smith (Host) :
Well, they might be missing out on some of the alternatives that are out there and are We can’t help but be bombarded with all the commercials that we’re seeing, and unfortunately, a lot of those commercials make it look like the senior, the person who’s over age 65, is befuddled and confused, and the person on the TV who’s the Medicare specialist is going to kind of rescue them from a myriad of confusing information.
Al Smith (Host) :
Yes, I’ve seen those also, and I think it does a disservice to seniors and active adults because I’ve worked with them now for 10 years, and they truly are the most detail-oriented, and they take the time to read their programs and understand, and it’s all about their health. So typically they are very interested on top of their game when it comes to selecting a plan and knowing what their best options are. So I do encourage them. They can also call their broker. or they can call us at the office.
Al Smith (Host) :
Well, that’s important. Now, what are the big differences between having a supplement to Medicare and having Medicare Advantage? Because I kind of understand the difference, but I know a lot of our listeners, some of them live in areas where they may not be able to participate in Medicare Advantage because they have a very… a limited network. Like I know some folks in Summit County, and they have to have a supplement because if I understand it right, Medicare Advantage doesn’t have a network up there. Do you find that to be the case?
Al Smith (Host) :
There’s two different types of plans. The traditional Medigap or Medicare supplement plan, and that’s where the provider would first bill Medicare and then the supplement. And along with that needs this standalone prescription drug plan. Or there’s also the Medicare Advantage program, which is network-based, like you mentioned. And the prescription drug, the advantage of that plan is the prescription drug plan is built in. And so a lot of people have one program, and it includes their medical and their prescription drugs. And there’s very favorable programs around the Medicare Advantage prescription drug plans. which is another option for somebody this year. Perhaps they want to look at a Medicare Advantage if it works for them.
Al Smith (Host) :
Well, I think the important thing is that people reach out and get in touch with you so that they can determine which is going to be better. Because I know some people, because of the zip code where they live, a supplement might be better. But if they live in a metro area, they have a lot of choices in terms of which network they’re able to participate in. And that’s something that… is not always very clear, so that’s when it really becomes important to have someone that they can work with like yourself. Am I right?
Al Smith (Host) :
Exactly. Most exactly. Immediately we can tell somebody what their options are with regard to network or needing a Medigap plan, and there are some very good programs, and we always seek to find them the most cost-effective plan.
Al Smith (Host) :
Well, especially since if my memory serves me, when I knew a little bit more about the Medicare supplements, they’re sort of labeled by Plan A and B and J and F and K and so forth. And what I found interesting is that one company’s Plan J is exactly the same as another company’s Plan J. So what you need to find is the company whose Plan J has the lowest premium, if, in fact, Plan J is the one that you should be having to supplement your insurance. And which plan is better probably depends if you’re going to be having a lot of medical expenses or not.
Al Smith (Host) :
Exactly. Yes. And the plans for Medigap are designed by Medicare and they’re administered by independent companies. And you’re right. A plan G with one company has the exact same plan benefits with another company. So finding the most cost effective and the lowest premium certainly serves the insured very well to take a look at that.
Al Smith (Host) :
And that’s something that I guess a person could learn that on their own. But it would certainly be easier if they were to work with someone like yourself. Now, I know that they’ve talked on TV. I’ve seen the ads that the. special that the Medicare enrollment ends on December 7th. But are there other choices and alternatives for people beyond December 7th? How does that work?
Al Smith (Host) :
Yes. Starting in January, we now have what’s called the open enrollment period. Currently, we’re in the annual. That’s for anybody who is involved in Medicare, can change plans. And in the open enrollment period, starting in January, that’s for people on these Medicare Advantage plans. And if by some chance the plan they selected does not best suit them, they can change at that time. They can also change Medigap plans.
Al Smith (Host) :
Well, I know we’ve spoken about some of the people that you’ve worked with and so forth, but tell us a story or two about some people that you have helped and how you’ve not only saved them money, but had them be in a program that is paying a much higher percentage of their medical costs. I know you’ve got some really good stories because you’ve been doing this for a while.
Al Smith (Host) :
Yes, I have. I just had a very heartwarming story this week. I was contacted by a gentleman who takes care of his father’s plan. And the father had been on a Medigap plan for a number of years, most of his Medicare career. And he is also a veteran. And now he has assisted living. So what we did is we moved him to a terrific veteran plan that wraps around the VA program. So he has excellent coverage, and we’re saving the family thousands per year on a $0 premium plan that wraps around, and it gives him dental, vision, gym membership if he wanted to use it, and a number of extra benefits.
Al Smith (Host) :
Well, that is superb. And how did the young man who is helping with his father’s health insurance, and he’s probably doing a lot of things for his father if his father is in assisted living, but how did he learn about you?
Al Smith (Host) :
It was a referral from a longstanding client. Yes. And there was another key to that plan, which is a good reason to take a look at the options available this year it’s a 75 rebate on the part b premium which right now the part b premium is 175 a month so this program will reduce that by 75 so it was it’s really there’s some really terrific programs out there
Al Smith (Host) :
Does it reduce it by $75 every month or just period, one time? Every month. Oh, that is a significant savings. Yes. Well, Medicare and the coverage that goes with it is kind of complicated. And I know you’ll have some other stories and some other things people will need to learn about. And we’ll talk about those after the break.
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Al Smith (Host) :
Welcome back to the second half of Retirement Unpacked. And as I mentioned earlier, a lot of people who listen are in a circumstance where they’ve been saving for a while and they’re looking forward to retirement, but they have a lot of questions. And I think that Fits the circumstances of a lot of people who come into my office for a conversation. There’s never any charge for that. The number is 303-744-1128. Or if you’re driving, don’t try and do that while you’re driving. Get in touch with KLZ and they’ll put you in touch with me. And this afternoon, we have a real treat. We’re listening to Mary Aronbell, who for years has been helping people with the supplemental coverage that goes with their Medicare. And I know, Mary, you were telling me about a friend that you have who had some pretty serious medical issues. Tell us about that.
Al Smith (Host) :
Yes, and this person has a Medicare Advantage plan and had an accident where she tripped and fell and had to call an ambulance, go to the emergency room, and it was really quite severe and she needed surgery. Well, she has one of these Medicare Advantage plans and everything was a copay. She had full access. Once she left the emergency room, she could contact her primary care, go to a specialist. She was scheduled for surgery quite efficiently and went right into the program and is now home and recovering. So it’s all about access to plans. And like you mentioned, in Summit County, you might need a Medigap program. And in the areas where there’s networks, you can have Medicare Advantage plans. But we always want to make sure that someone has terrific access to their providers, to emergency rooms, to urgent care.
Al Smith (Host) :
Well, that sounds like a really good experience for that person. And the thing about many different types of insurance is that you don’t know if what you have is… the best for you until you have a claim. Because if you’re just paying for your car insurance or your homeowner’s insurance or your Medigap insurance and you don’t have a claim, it may seem fine. It might seem too expensive or it might seem like maybe it’s not the most appropriate or it might seem expensive until you have a claim. And then when you have that claim, you realize, wow, this is working out well. It’s turning out that I have very little out of pocket and I’m getting great care. And I think that’s probably the bottom line, Mary, is that once people use it, if somebody has been healthy for a long time and then all of a sudden they have a major medical expense, makes you feel really good when you hear about it and learn that their expenses have been covered.
Al Smith (Host) :
Oh, it really warms my heart. And I’m so excited that people can access care for affordable amounts, especially on Medicare. And it’s subject to co-pays, and it keeps it very affordable. It’s incredible. And as far as the emergency… goes or an ambulance. It covers air, land, or water on many plans. So I really firmly believe that everybody age 65 should go on to Medicare and not go on the group plan because Medicare, there are some fine programs established each year.
Al Smith (Host) :
Oh, there really are, and I’ve occasionally met some people who are still working beyond age 65, and I’m not sure quite the reasoning, but sometimes they will stay on their company plan, which sometimes is not nearly as good as Medicare plus a good Medicare Advantage, but it’s one of those things that, oh, I’m just going to continue with what I have because… I hate change.
Al Smith (Host) :
Oh, you are so right. And those people, they actually can enroll now during the annual enrollment, or they can leave their group plan and enroll most any time of the year. But if they give us a call, we’ll be glad to walk it through them. We can help them compare plans, which would be better. We can also help them if they have dependents still on the group plan. We can help cover that and move the insured to Medicare. So we really work with them about solutions.
Al Smith (Host) :
Now, I know some younger people end up being on Medicare because they’re on Social Security disability. How does that work with their supplemental coverage if they’re not age 65, but they’re on Medicare because of a permanent disability? Is that something you’re able to work with?
Al Smith (Host) :
Yes, we are. And coming in, if they’re disabled, when they first come into Medicare, they have some special situations that allow them to select most any plan. And you really want to make the right selection because they don’t have that option again until they turn age 65. They can change during the annual enrollment period. But their greatest selection option is when they first come in. And, yes, they are on Medicare. And when they turn age 65, they continue to be on Medicare as well.
Al Smith (Host) :
Well, that’s incredibly important because if someone is on Social Security Disability at a younger age, And I remember many, many years ago, I knew a gentleman and his girlfriend that eventually married and became his wife. She was on disability at a very young age because she had extremely severe arthritis. And at a very young age… and her fingers were kind of gnarled, and she had to take some pretty heavy-duty medication in order to avoid being in pain most of the time. And certainly someone like this may be going through a lot of medical expenses, and having somebody like you to guide them as far as which plan they should have to go with their Medicare is every bit as important as what you do for folks once they reach age 65.
Al Smith (Host) :
It’s so important for those people that I do a very detailed fact finding, and what they really need over the long term is access to care. So depending on what their disability is, you definitely want to make sure they’re in a program that will give them not only local access, but perhaps there’s access in some other state, and you want to make sure they could possibly do that as well.
Al Smith (Host) :
Yeah, I think that’s, as I say, incredibly important. And the other component, and we already mentioned that, but some of the people who stay on their plan at work, I’ve seen some of the plans at work that are really comprehensive, and they’re paid for largely by the employer. And I’ve seen some of them that are rather thin, which if somebody doesn’t have too many medical expenses, it’s okay to have kind of a thin or a weak plan. But if something severe happens, that’s when you find out how good your health insurance really is.
Al Smith (Host) :
Oh, exactly. And the financial exposure on Medicare is much less than on a standalone plan. So that is another major reason why people should look into Medicare when they’re age 65, even if they’re still working.
Al Smith (Host) :
No, I totally, totally agree with that. Now, Mary, how would someone reach you if somebody is approaching Medicare or if they’re not terribly happy with who they have now for their supplemental coverage? How would people reach you?
Al Smith (Host) :
They can call the office at 303-744-1128, or they can always… Email me, and it’s mary at 65in365.com. So it’s mary at 65in365.com.
Al Smith (Host) :
Boy, I do recognize that phone number because they could talk to you about their supplemental coverage to Medicare, and that’s my number also. I know you have a space in my office where you use that and are able to reach out to people and meet with folks. But I think the important thing is you’re able to help people in that area of your expertise. And if someone, whether they’re near Medicare age or if they’ve been retired for 10 years and they have concerns about wanting to know for certain if their money would last throughout their lifetime, if they’re really concerned about inflation, if the income they’re drawing is adequate, they can reach me at that same number. 303-744-1128, whether it’s a question about Medicare or a question about what’s my retirement going to look like. Will my money last as long as I do? Contact that number. And if you’re driving, just go ahead and reach out to KLZ. God bless you. God bless our country going forward. And let’s continue to pray for the folks in Israel. Bye now.
Julie DeHarty (Host) :
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