Brian Mulloy

Medicare Advocate and Insurance Broker

The TRUTH about Medicare’s PENALTIES.

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Sometimes the wrong word is chosen to describe something.  I don’t know if it is because there is no better “word” available, or the describer wants to make a bigger “statement” by using a certain word.  For example… Medicare says you will be PENALIZED, or there will be a PENALTY if you do not sign up for Medicare when you should. If you remember who “Uncle Charlie” is, Uncle Charlie loves this one because it’s “scary” and off course, no one wants to be penalized for anything.  So Uncle Charlie really goes overboard with this one and of course, we all believe our Uncle Charlies.

In my opinion, the word Penalty is the wrong word to use.  The Penalty comes into play when you do not sign up for Medicare Part B, or a Medicare Part D drug plan when you become eligible.  If you put that off to sometime in the future (when you need it), you will not be able to just sign up when you want to and there will be a Penalty accessed in the form of higher premiums than you would have paid if you signed up on time.  Here is the catch though – This is INSURANCE. Medicare is Health Insurance. It is not a Freebie, it is not a giveaway program, It’s Insurance. It’s something you pay for all your working life and something you continue to pay for after you get it.  So, lets forget about the word Medicare and just think of it as insurance.

What are the reasons you would NOT sign up for Medicare at age 65?

  • You are currently actively employed and covered under an employee group plan?
  • Your spouse is actively employed and has you covered under their group plan?
  • You are still working just to keep your spouse insured because they are much younger than you?
  • You are covered under a retiree group plan that does not require you to enroll?

OR…

  • Maybe you are the picture of health?
  • Maybe you don’t go to the Doctor?
  • Maybe you don’t take any medications?
  • Maybe you believe you will never use Medicare, so why have it?

See, whether there is a Penalty accessed depends on the reason why you do not take Medicare at 65.    If you have had alternate coverage prior to taking Medicare Part B no matter what your age is, there is NO penalty.  But if you wait until you get sick or are facing large medical expenses that you did not plan for, well, you will pay more for your insurance.  So, let me ask a few questions so you can look at this in perspective.

  1. Do you own a home?
  2. Have you owned that home for longer than 5 years?
  3. Do you have Home Owners Insurance on that home?
  4. How many claims have you had in the past 5 years?

If you answered that last question “Zero”, then Cancel Your Home Owners Insurance!  You don’t need it! Why pay for it if you’ve never used it?

Of course, you wouldn’t do that.  That would not be smart. But it’s the same concept.  You don’t wait until the tree falls on your home before you go get home owners insurance.  You also don’t wait until you get sick before you go get health insurance. It works the same way.  If you did wait until the tree fell, wouldn’t you pay more for the insurance? – Yes, you would, if you could get it.  Well, if you wait until you get sick to buy health insurance – you will also pay more for it.

This shouldn’t be called a Penalty.  The government should just say “If you wait until you need Medicare before you enroll in Medicare, you will pay a higher premium”.  Sounds simple enough, and if it was put to most folks that way, there would be a whole lot less worrying about Penalties. Take your Medicare benefits when you are supposed to so that when you need it, it’s there for you, and don’t worry about Penalties.

Respond to what you’ve read here.
Contact Brian here.
Sign up for a Turning 65 Medicare workshop here.

Who Is Uncle Charlie?

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When I was a kid, my Dad was in the Real Estate business. He would sometimes come home telling my mother that he had to deal with “Uncle Charlie” today on a home showing. My father would say,“Showed a house to a nice young couple today, they brought their Uncle Charlie along for the ride.”

He used to tell me that Uncle Charlie was just a representation or a nick name of sorts for the type of person he was dealing with at times. Uncle Charlie would always make sure his 2 cents were heard.

“That room is too small”
“These sink fixtures need replaced”
“This house needs painted”
“You know, this house is not in the best part of town”
“Lots of traffic on this road”

Well, you get the point. Uncle Charlie is an expert on everything, knows everything about everything, and nothing about nothing. Also, Uncle Charlie is very quick and consistent on making sure their opinion is not only heard but stated as fact. Usually, Uncle Charlie has nothing positive to contribute about the subject, and his end goal is not to be happy, but to be right. After my dad would tell me the story of the day’s Uncle Charlie episode, I would ask “What did you say to him dad?”. He always came back with the same reply:

“I would just ask “Tell me sir, which one are you coming up with – The Down Payment, or The Monthly Payment?” He said that usually shut them up for good.

I use the term “Uncle Charlie” as a representation, or nick name as well. Medicare has LOTS of Uncle Charlies. Maybe your Uncle Charlie is your hair dresser, your neighbor, your older brother or sister, your facebook friends, etc… Or Maybe, just maybe, YOU may be the Uncle Charlie at times. Uncle Charlies are very dangerous and can ruin your healthcare for the rest of your life. The real problem is that when seeking out advice on Medicare, folks naturally migrate to the Uncle Charlies before getting the advice of an expert in the field. Why would a person who was an electrician all their working life know everything about Medicare? It’s a good question, but folks will still ask the electrician’s (Uncle Charlies) for Medicare advice.

An additional problem is that Uncle Charlie has NOTHING good to say about anything. Negativity is FUN! If it weren’t there wouldn’t be news on every other cable channel with nothing positive to report. It’s sexy. We love it. It’s more fun to tell somebody else the nonfactual negative things about Medicare then to talk about how great it is when you must use it. That’s boring! So, Uncle Charlie is believed when listened to, and considered an expert.

Before you start looking into your Medicare needs, sit and think about WHO your Uncle Charlies are, and you do know who they are. Most of you reading this have already thought about that. I’m going to tell you, as you will here me talk about repeatedly, that Medicare is the GREATEST healthcare in this country. Bar none! If… you do it right. If you do it wrong, you will someday regret what you did at 65, and you will forget that it was Uncle Charlie who convinced you to do what you did. Be careful. Get advice from an expert (Like Me) or someone like me whom you like, can trust, and you know can help you. And… DON’T listen to Uncle Charlie. Trust me, he is wrong every time.

Respond to what you’ve read here
Contact brian here
Sign up for a Turning 65 Medicare workshop here

Confused by Medicare?
You are NOT alone.

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You’re invited to attend our Turning 65 Workshop for people who need to enroll in Medicare within the next few months.

    Some of the topics we will address at the workshop include:

  • What do you have to do to enroll in Medicare? What does it cost and when does it begin?
  • There are dozens of Medicare Supplement Plans available. Do you know the single most important thing about them?
    Knowing this one thing can save you a lot of money!
  • What are Medicare Advantage Plans and how do they differ from Medicare Supplements? What are HMOs, PPOs and PFFS plans? You need to clearly understand the differences and there are major differences.
  • Are all Medicare Prescription Drug Plans the same? Hardly, there are many plans in every state and there can be big differences in premiums, deductibles, co-pays and formularies. Did you know that Medicare will penalize you for not enrolling in a drug plan, even if you don’t take any drugs?
  • What if you have retirement supplement coverage from your former employer? Should you keep that coverage or switch to another plan? (Sometimes “Yes”, sometimes “No”). I’ll help determine what’s right for you.
  • Did you know that you have guaranteed insurability for a 6 month period after enrolling in Medicare Part B? After that time, those guarantees disappear forever. For some people, this will be the most important thing I will talk about!

[Read more…]

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