FAQ - Frequently Asked Questions
Medicare and Retirement Planning can be confusing. Our goal is to help ensure that you have all your questions answered so you can navigate through retirement. To help you get started we have answered a few commonly asked questions below. If you have any further questions or would like to set up a complimentary consultation please contact our office.
What services do we offer?
We offer a wide range of services for any age but we mainly focus on preparing individuals for retirement using a holistic approach. Complimentary one-on-one consultations to assess your current situation and help ensure your ducks are in a row for retirement. There are several reports that we offer at no cost to you including Social Security Maximization, Retirement Income Analysis, and Estimated Medicare Costs. We also host several in person or webinar based seminars with general information. If you want to learn more check out a full list of our services.
What is a Complimentary Consultation?
During an initial consultation with Scott you will discuss your financial priorities and goals, how we can work together and the value we can provide. To learn more check out our planning process or if you are ready to set up a session click here to access Scott’s calendar.
How much does it cost to meet with you?
A meeting with one of our licensed representatives does not cost anything. The companies that we are licensed with pay us on a commission basis so we can offer you outstanding service without you ever having to worry about a bill from us.
How much money do I need to retire?
It truly differs for everyone and is based on many different factors. The general guideline is 80-90% of your pre-retirement income. We recommend meeting with a professional to analyze your needs and situation. To receive a complimentary Retirement Analysis schedule a one on one session here.
When can I apply for a Medicare Plan?
Initial Enrollment Period (IEP): You can sign up for Part B during the 7-month period that begins 3 months before the month you turn 65, your birth month and ends 3 months after you turn 65. In most cases your coverage will begin the first day of your birthday month.
Special Enrollment Period (SEP): After your IEP is over, you may have a chance to enroll during a special period. If you did not sign up initially due to having group coverage you can enroll into Part B.
Annual Enrollment Period (AEP): From October 15th through December 7th each year individuals on Medicare Advantage Plan or Prescription Drug Plan can change their plan with an effective date of January 1st the following year.
Medicare Advantage Open Enrollment (MAOEP): From January 1st through March 31st each year individuals enrolled in a Medicare Advantage plan may make a one time choice to change to a different Medicare Advantage plan or go onto Original Medicare and enroll into a Prescription Drug Plan.
General Enrollment Period (GEP): If you do not sign up for Part B initially and do not qualify for a SEP you can sign up between January 1-March 31 each year. However your Part B coverage will not begin until July 1 of that year and you may have to pay a higher premium due to late enrollment.
What is the Medicare drug coverage (Part D) Late Enrollment Penalty (LEP)?
The late enrollment penalty is an amount that is permanently added to your Part D premium. You may owe a late enrollment penalty if at any time after your Initial Enrollment Period is over, there is a period of 63 or more days in a row when you do not have Medicare drug coverage or other credible prescription coverage. Whether you have prescriptions or not if you do not obtain credible coverage when eligible you will incur a 1% per month penalty of the then current Part D Plan premium.
Example: Mrs. Martinez is currently eligible for Medicare, and her Initial Enrollment Period ended on May 31, 2018. She doesn’t have prescription drug coverage from any other source. She didn’t join by May 31, 2018, and instead joined during the Open Enrollment Period that ended December 7, 2020. Her drug coverage was effective January 1, 2021.
2021 : Since Mrs. Martinez was without creditable prescription drug coverage from June 2018–December 2020, her penalty in 2021 was 31% (1% for each of the 31 months) of $33.06 (the national base beneficiary premium for 2021) or $10.25. Since the monthly penalty is always rounded to the nearest $0.10, she paid $10.30 each month in addition to her plan’s monthly premium.
Here’s the math:
.31 (31% penalty) × $33.06 (2021 base beneficiary premium) = $10.25 $10.25 rounded to the nearest $0.10 = $10.30
$10.30 = Mrs. Martinez’s monthly late enrollment penalty for 2021
*Data and example pulled from the 2022 Medicare and You Guidebook