Medical & Medicare

Planning

Planning for your health and having the health insurance that you can afford, to guard against the risk of incurring medical expenses, is critical as a medical setback without proper insurance coverage could be a catastrophic financial event.


Therefore, ensuring that adequate health insurance is in place is a critical aspect of comprehensive financial planning.

Once people reach their 50s and 60s, it’s common for them to start thinking about drafting a will and making gifts to their heirs from their estates. What is not so common is to factor in their own future health care needs when they plan their estates, such as long term care insurance.
Unfortunately, failing to look at this issue beforehand may result in having to spend the resources that were intended to pass on to their children and grandchildren. The good news is that careful planning in advance can usually help prevent this loss.

Medicare is a social insurance program administered by the United States government, providing health insurance coverage to people who are aged 65 and over and to those who are under 65 who are permanently physically disabled or who meet other special criteria. Before Medicare, only 51% of people aged 65 and older had health care coverage, and nearly 30% lived below the federal poverty level. Unfortunately, Medicare does not cover long term care or rehabilitation in a facility, so we advise all our clients to take proper steps in ensuring they are covered for the long-term (link to Disability and Long-Term Care).

Once a person reaches age 65 and has enrolled in Medicare Parts A & B, we advise our clients when appropriate to also enroll in a Medicare Supplement plan as well as a Prescription Drug Plan (including the Medicare Part B deductible) to cover the multitude of costs that Medicare doesn’t cover. Medicare can be confusing, and a Financial Advisor should be contacted prior to implementing any recommendations.