Saturday, July 26, 2014

Medicare Health Plans 2015

So what can we expect for 2015? Are Medicare health plans going to remain pretty much the same? Will there be any surprises?

It's early and companies are still in the "file and wait" mode. In other words, rates and plans have been filed with the insurance commissioners but approvals are still pending. My guesses are --

Monthly premium rates will change. Established plans with reasonable claims experience are likely to keep their rates close to the 2014 prices. Plans new to to the Medicare market often "buy" business with low rates but sometimes get stuck with "the gooey end of the lollipop." Watch for those carriers to play catch-up with higher rates and/or more streamlined benefit plans.

How long will the zero premium plans be with us? For the last three years I have said they cannot be sustained forever. Don't be surprised if your "free" Medicare health plan suddenly starts charging a monthly premium. If they do, they may sweeten the offering. Read the details.

Some plans are very "plain Jane" with their benefits package. Others are starting to understand that people appreciate the Silver Sneakers program, preventive dental, vision benefits (exam and hardware with $100 or $125/year toward glasses or contacts) and hearing aid discounts. Don't chase the bells and whistles. Look for solid customer service and a network you can live with.

HMO, PPO or Medigap
Most Medicare Advantage plans are based on the HMO or Health Maintenance Organization platform. PPO or Preferred Provider Organization plans are not as prevalent but are popular with folks that don't like being confined to a limited network. If you qualify, a Medigap policy offers the most freedom and portability. Medigap policies are a bit more expensive but can be set up with no deductibles, no office copays and no coinsurance for you to pay out of pocket.

Go Direct or Use A Professional Agent
By all means, use a professional agent that is licensed, trained and certified to help you find the Medicare health plan that 1) is accepted by your provider (s), 2) meets your needs, 3) covers your prescription medicines and 4) is within your budget. An agent is compensated by the carrier and there is no extra charge or premium to you for using an agent. Do it!

Open Enrollment
If you are currently in a Medicare Advantage plan you are "locked in" until the first of the year. Open enrollment runs from October 15th to December 7th and is the time for you to meet with your agent to see if you are in the right plan or should consider switching to something else. If you have gone direct, this is the time to connect with an agent and have him/her help you.


Wednesday, July 23, 2014

Brief Consumer Guide to Health Law Court Decisions

Jul 22, 2014
This KHN story can be republished for free. (details)
On Tuesday July 22, 2014 two U.S. appeals courts issued conflicting rulings on a subject that’s important to millions of people:  the availability of subsidies to help purchase coverage under the health-care law.  KHN’s Mary Agnes Carey answers some frequently asked questions about those court decisions and how they impact consumers.
Q: What did the courts decide?
A:  In a blow to the health law, the U.S. Court of Appeals for the District of Columbia Circuit ruled that the health law’s subsidies are available only to individuals in the 14 states and the District of Columbia now operating their own health insurance exchanges.  The federal government now runs the exchanges in 36 states.  Judge Thomas Griffith, writing the majority opinion in the 2-1 decision, said they concluded "that the ACA unambiguously restricts" the subsidies to "exchanges 'established by the state.' "
In a separate ruling, a three-judge panel for the Fourth Circuit Court of Appeals in Richmond, Va., ruled unanimously for the Obama administration, allowing subsidies to be available to residents in all states.  Judge Roger Gregory, writing the opinion, said while the health law is "ambiguous and subject to multiple interpretations," the court decided to uphold the IRS's interpretation of the law that residents of states using the federal exchange are entitled to subsidies.
Q: What was the issue the courts decided on?
A:  The case centers on a brief description in the health law that says subsidies will be available "through an exchange established by the state."
In implementing the law, the Internal Revenue Service (IRS) interpreted the law to allow eligible consumers to receive subsidies to help purchase coverage, regardless of whether they are in an exchange run by their state or by the federal government.
Opponents of the law questioned that interpretation, saying that the law as written clearly directs subsidies to state-based exchanges only.  But proponents– including several lawmakers who helped write it – said lawmakers fully intended that subsidies be offered on all exchanges no matter if they were administered by the feds or state officials.
Q  I don’t know if my state runs its own exchange. Which states do?
A: California, Colorado, Connecticut, Hawaii, Kentucky, Maryland, Massachusetts, Minnesota, Nevada, New York, Oregon, Rhode Island, Vermont, Washington and the District of Columbia all run their own exchanges. 
Idaho and New Mexico intend to set up their own marketplace for the next enrollment period, which begins in November, but used this year.
Q: I live in a state with a federally run exchange, and I get a subsidy to help me buy coverage. Am I going to lose it?
A: Nothing is happening immediately.  Justice Department officials said Tuesday they plan to seek an en banc review from the D.C. Appeals Court, meaning that the panel’s full contingent of 11 judges would hear the case.  Six of the court’s judges would have to agree for the full panel to review the case. The full panel is dominated by judges appointed by Democrats, 7-4.
Eventually the case could be considered by the Supreme Court, but the current subsidies would likely remain in place until there is a final legal decision on the matter.
"In the meantime, to be clear, people getting premium tax credits should know that nothing has changed; tax credits remain available," said Emily Pierce, deputy director of the Justice Department's office of public affairs.
White House spokesman Josh Earnest said the administration was confident it would prevail. "You don't need a fancy legal degree to understand that Congress intended for every eligible American to have access to tax credits that would lower their health care costs, regardless of whether it was state officials or federal officials who were running the marketplace."
Supporters of the court challenge to the IRS interpretation on subsidies also maintain their case is strong. "The executive branch does not get to rewrite statutes just because it thinks those statutes would work better a certain way," said Michael Cannon, director of health policy studies at the libertarian Cato Institute who championed the subsidy appeals. "If people lose those subsidies it is because the courts have ruled that those subsidies are and always have been unlawful -- that the administration had no authority to administer those in the first place."
Q: Are these the only two court cases?
A: No. There are two other similar cases pending in courts in Oklahoma and Indiana.
Q: If there are legal disputes ongoing about who qualifies to receive a subsidy, do I still have to buy health insurance?
A: Yes.  The law's "individual mandate," which requires most people to purchase health insurance or pay a fine, is still in place.
Q. What if I get my insurance through work?
This decision applies only to policies sold on the online marketplaces. It does not affect work-based insurance, Medicare or Medicaid, regardless of where you live.

Thursday, July 10, 2014

What is a "Letter of Entitlement"?

From time to time I am referred to people turning 65 that have not applied for Medicare until just before their intended effective date. It can take two to three weeks for Medicare to send out the card indicating enrollment in Part A and Part B.

All Medicare health plans require the person be enrolled to Medicare Part A and Part B. In fact, the agent/broker must copy the card information onto the enrollment application verbatim.

So, what if the person has not received their card and they want to get their application filed on time so their Medicare health plan begins on the desired date?

You can get a "Letter of Entitlement" for proof of Medicare benefits online. Log into "My Social Security" at - create a personal account and print off the letter of entitlement without having to wait for the US Postal Service!

The agent/broker can submit a copy of the letter of entitlement with the insurance application. This prompts the insurance company to pend the application and "ping" (check) the MARx (National Eligibility Database) rather than deny the application.

Thus, if you are close to age 65 and are waiting for your Medicare card to arrive in the mail, you can do an end run on the US Postal Service by using the website above to get your own "Letter of Entitlement."

Sunday, June 8, 2014

Identity Theft - What will you do?

You read about it all the time. Somebody gets their whole life turned upside down when a thief steals their identity and goes on a buying spree. But did you know there are other kinds of identity theft besides losing cash from your bank account?

Medical Identity Theft
Someone gets enough information about your health insurance coverage to get medical care they need but the bill goes to you! A plastic surgeon tells of a breast augmentation performed on a woman that used a stolen identity and medical insurance information. The expensive surgery was completed and the woman disappeared. Only weeks later was it discovered that the woman that got the bills was not the woman that had the operation.

Criminal Acts In Your Name
A man gets pulled over by police, handcuffed, Mirandized and hauled off to jail. He was innocent but was arrested because someone unknown to him committed a robbery, used his identity when picked up by police and then skipped bail.

Children Are Vulnerable
Almost every child has a Social Security number, including infants. When an identity thief gleans the child's name, birthdate and SSN it's like taking candy from a baby. The years of felony acts and financial damage may not be discovered until the youngster applies for his/her first job or tries to buy a car on credit.

The financial devastation of identity theft is compounded by the emotional stress that goes with such a loss. It's bad enough that you lost all of your savings or were denied a loan on the house you wanted to buy. It's horrible that you were passed over for the job you really wanted because of a poor credit rating you didn't even know you had.

Restoration Process
Restoring your good name is the toughest part. It takes hundreds of hours and sometimes years and thousands of dollars to put your life back the way it was. Do you have the time and knowledge to handle the myriad tasks AND continue to work, raise a family and maintain your sanity?

It's easy to get an identity theft program that notifies you of a breach against your credit. Most identity theft protection plans promise to help you restore your life. But there is a big difference in how IDT plans approach restoration.

One that is advertised heavily on radio does a good job at alerting you of trouble but when the damage is done (and it often does even though an alert is sent by email or text message) the company sends you a kit with information and instructions for you to follow. It's DIY from that point forward.
Good luck.

The IDT plan I have monitors all three credit agencies 24/7 and sends instant alerts when there is a "hit" to my credit file like you'd expect. My IDT plan monitors my online activity and social media for trouble. My IDT plan monitors police records to see if my name pops up. But they do much more.

The IDT plan I use allows me to sign an affidavit that allows Kroll, the global leader in risk mitigation response, to step in and actually do all the legwork to restore my life. Plus, I have unlimited access to attorneys to counsel me on whatever I need in the way of help following a loss of any kind.

How much would you pay for this kind of protection? This kind of identity theft protection and restoration could cost thousands of dollars. But I pay less than $20 per month. And it covers everyone in my household. Interested?

Thursday, May 22, 2014

Medicare to save $100 to $740 million over the next ten years

The following is from a CMS bulletin received May 22, 2014---
The Centers for Medicare & Medicaid Services today announced plans to expand a successful demonstration for prior authorization for power mobility devices, test prior authorization in additional services in two new demonstration programs, and propose regulation for prior authorization for certain durable medical equipment, prosthetics, orthotics, and supplies. Prior authorization supports the administration’s ongoing efforts to safeguard beneficiaries’ access to medically necessary items and services, while reducing improper Medicare billing and payments. The proposed rule is estimated to reduce Medicare spending by $100 to $740 million over the next ten years.

“With prior authorization, Medicare beneficiaries will have greater confidence that their medical items and services are covered before services and supplies are rendered. This will improve access to services and quality of care,” said CMS Administrator Marilyn Tavenner.

The announcement builds upon lessons learned from the Medicare Prior Authorization of Power Mobility Device Demonstration. Launched in 2012, the demonstration established a prior authorization process for certain power mobility devices. Based on September 2013 claims data, monthly expenditures for certain power mobility devices decreased from $12 million in September 2012 to $4 million in August 2013 across the seven demonstration states (California, Florida, Illinois, Michigan, New York, North Carolina, and Texas) with no reduction in beneficiary access to medically necessary items.

CMS seeks to leverage this success by extending the demonstration to an additional 12 states. These states include Arizona, Georgia, Indiana, Kentucky, Louisiana, Maryland, Missouri, New Jersey, Ohio, Pennsylvania, Tennessee, and Washington. This will bring the total number of states participating in the demonstration to 19.

CMS also proposes to establish a prior authorization process for certain durable medical equipment, prosthetics, orthotics, and supplies items that are frequently subject to unnecessary utilization. Through a proposed rule, CMS will solicit public comments on this prior authorization process, as well as criteria for establishing a list of durable medical items that are frequently subject to unnecessary utilization that may be subject to the new prior authorization process. The proposed rule is currently on display at and will be published in the Federal Register on May 28, 2014. The deadline to submit comments is July 28, 2014.

CMS will launch two payment model demonstrations to test prior authorization for certain non-emergent services under Medicare. These services include hyperbaric oxygen therapy and repetitive scheduled non-emergent ambulance transport. Information from these models will inform future policy decisions on the use of prior authorization.  

Prior authorization does not create additional documentation requirements or delay medical service. It requires the same information that is currently necessary to support Medicare payment, but earlier in the process. CMS believe prior authorization is an effective way to ensure compliance with Medicare rules for some items and services.  

Additioanl Fact Sheets Links:

Wednesday, May 14, 2014

Are IRAs and 401(k)s the best you can do?

If you are using a qualified plan like an IRA or 401(k) it may be the worst thing you can do because you will be taxed out of your gourd when you retire and actually need your money.

There is a better way that is approved by the IRS and beats IRAs and 401(k)s by 25%-40%.

It’s been around for years. Your money grows tax-free, has no taxes at retirement, no taxes when you die and no taxes when passed on to your heirs.

And there is no risk to your principal. If the market tanks like it did in 2008 you lose nothing.

And there is more. This IRS sanctioned retirement plan can be arranged to provide long term care benefits if you become disabled and that money is also tax-free. 

You can find out more about this guaranteed retirement plan by contacting me at 425-338-1000 or

Saturday, May 3, 2014

Know a good attorney?

From time to time almost everyone needs legal advice. Bad experience with a car repair, construction job or remodel gone haywire, car accident, legal forms to sign. And the big one, teenagers driving!

Who are you going to call? What is it going to cost?

Legal Shield is the answer. Their motto is "Worry less, live more."

For as little as $20 per month you can
  • Call an experienced attorney with any legal question - no charge
  • Have up to 15 pages of legal documents reviewed by an attorney - no charge
  • A letter or phone call from your attorney to solve a problem - no charge
  • Legal documents prepared - a will and power of attorney - no charge
  • Up to 60 pre-trial and trial hours of attorney time - no charge
  • Representation in court by an attorney for defensible driving tickets - no charge
  • Legal representation before the IRS if you are audited - no charge
  • Discounts on other legal matters
I've used Legal Shield since 1998 and the service has saved me thousands of dollars. Unlimited phone calls about tax issues, real estate, business questions, estate settlement and probate is a big reason why I use Legal Shield.

Legal Shield also has the best Identity Theft protection you'll find anywhere. Security breaches at Target and other major retailers are in the news and have affected millions of people. Anyone that has used or other state health websites should be aware that the sensitive information entered is not secure. Identity Theft protection is a must-have.

Find out how Legal Shield can bring you peace of mind and solve issues you are fretting about. At click on ENTER and look at the Legal Shield tab. Watch the videos and learn more.

Sunday, April 6, 2014

The Best Retirement Savings Plan?

If you are saving for retirement, chances are you have a "tax qualified" account of some kind - an IRA, 401(k) or perhaps a SIMPLE plan. You get a tax deduction for deposits you make to your retirement plan and it grows "under the radar" of the IRS. You don't pay taxes on the growth as the account accumulates interest over the years.

However, you will be taxed out of your gourd when you withdraw from your qualified retirement plan. 100% of the withdrawals are taxed as ordinary income at whatever the tax rates are at the time. People often say they expect to pay less in taxes when they retire. Huh? When did income tax rates go down in the last 45 years? (they haven't)

Another big thing is that your retirement accounts may be taxed as much as 60% if you leave the money to heirs. Is that what you want?

My clients use an IRS sanctioned plan that has been around for generations. There are no limits on how much you can save per year. Deposits are not tax deductible but withdrawals are tax-free. Your money grows as the economy improves. You never see a downturn or loss in your retirement plan if the economy tanks. There is also a self-completing feature: if you become disabled and your work income stops, the plan continues to make annual deposits for you. If you happen to die before or during retirement, the entire account goes to your heirs income tax free.

Contact me for more information and a tailor-made plan for your retirement.