Recap and Highlights – Session 7
- The primary role of the insurance agent is to be an advisor
- They are paid by the insurance companies that they represent
- The agent assists with selecting which companies and plans the client should get
- The agent has to get certified annually by every company that they sell as well as take an annual national certification test
- Terry recounts a story about a man who attempted suicide, survived and then applied for life insurance
Recap and Highlights – Session 8
- Part A of Medicare covers hospital while Part B covers medical. Together, Parts A and B are referred to as original Medicare
- Part A has no cost. Part B currently costs $104.90 per month
- Medicare Advantage plans replace original Medicare and usually include prescription drugs too
- Medicare Advantage is also referred to as Part C
- Medicare Advantage plans are usually HMOs, sometimes PPOs.
- If you go with an Advantage plan you still pay the $104.90 per month. You may pay more if your Advantage plan provides more coverage and treatment options.
- We discus in the podcast who is a good candidate for Medicare Advantage
- Medicare Supplemental Insurance, also called Medigap, covers what Medicare Parts A and B don’t cover.
- The most popular Medigap plan is F.
- Part D is Medicare’s prescription drug program. Plans are sold by insurance companies.
- The cost of Medicare Part D depends on the insurance companies formulary (what drugs are covered) and the tier that the drugs are in.
- For 2015, Part D coverage extends up to $2,960. Once that is reached the client hits the donut hole or coverage gap.
- Once $4,700 out of pocket drug cost is reached, then you’re in the catastrophic stage. However, discounts are given to reduce the cost.
- For Social Security disability qualifies you for Medicare.
- To be eligible, you have to be a citizen, legal resident or the spouse of a citizen or legal resident. You have to be married at least 10 years.
- An insurance agent can help you navigate through the complexity of Medicare and come up with the combination of plans that match your needs.
- You do not pay the agent for their services. The insurance companies pay.
- When you approach age 65 you should start looking into Medicare.
- Original Medicare is a good program but does not pay 100%. Additional insurance is needed.
- Medicare Advantage works well for people who don’t need a lot of coverage or can’t afford more coverage. However, the $104.90 monthly Medicare still must be paid.
References and Links
- If you have a question for Terry you can email him at firstname.lastname@example.org