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How to Use Social Security Spousal Benefits
Tweet Share on Facebook October 13, 2011 Comment (5)Each year, married couples are leaving billions of dollars on the table that they could be claiming from Social Security. The foregone money can be found in Social Security's spousal benefit rules, which are not widely understood or followed by many beneficiaries.
[See 10 Places to Retire on Social Security Alone.]
The missed opportunity and strategies for exploiting it were laid out in a 2009 study by the Center for Retirement Research at Boston College. "Strange But True: Claim Social Security Now, Claim More Later" described how spouses could increase their benefits by using Social Security's spousal benefit provision. A spokeswoman from the center says the points in the study are still valid today. But the process is complicated. Here goes:
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Use New Medicare Ratings to Select a 2012 Plan
Tweet Share on Facebook October 12, 2011 Comment (4)Medicare has been rating health plans since 2007, but the health reform law has added new muscle and meaning to the ratings. The 2012 ratings are now available for Medicare beneficiaries who want to buy either Medicare Advantage or standalone prescription drug plans (Part D of Medicare). The enrollment period for 2012 plans extends from October 15 through December 7.
[See 10 Steps to Fine-Tune Your Retirement Plan.]
Under Medicare's 5-star rating system, private health insurers whose plans have ratings of 3, 4, or 5 stars will receive small reimbursement bonuses next year from Medicare, according to Jon Blum, the program's director of the Center for Medicare. Bonuses for 3-star plans will be phased out, he said in a recent interview, while larger bonuses for 4-star and 5-star plans will be phased in over the next several years.
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4 Signs Economy is Heading Up for Seniors
Tweet Share on Facebook October 11, 2011 Comment (3)The country is still weathering a perfect economic storm—weak growth here and throughout the world, depressed job markets, big deficits depressing government employment, and a Congress incapable of agreeing on paths toward recovery and fiscal responsibility. But despite all this bad news, the outlook for older Americans actually may be turning more positive.
[See 10 Places to Retire on Social Security Alone.]
Looking at employment trends for older workers, better prospects for consumer spending, flatter healthcare costs, and the first Social Security cost-of-living adjustment in three years, it's possible to envision an economic landscape for seniors that has at least a bit of light in it. We're not talking boom times here, but slightly better times.
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Retirement Plans That Weather Economic Storms
Tweet Share on Facebook October 7, 2011 CommentNo one is happy with the market's sharp losses and non-existent yields these days. Yet many retirees are weathering this downturn with minimal disruptions to their lives. And their secret is not enormous wealth or an investment Ouija board that only picks winner. It's having a retirement spending and investment plan in place, and the discipline to stick with that plan through bad times as well as good ones.
[See 10 Steps to Fine-Tune Your Retirement Plan.]
U.S. News recently interviewed several financial planners and advisers throughout the country. There were nearly as many different investment strategies for today's market conditions as there were advisers.
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Include Medigap in Your 2012 Medicare Review
Tweet Share on Facebook October 5, 2011 Comment (17)Basic Medicare includes Part A, for hospital and in-patient expenses, and Part B, which covers physician, out-patient, and equipment costs. It includes deductibles and co-pay requirements that can expose retirees to big out-of-pocket payments. With this year's earlier timetable for 2012 Medicare open enrollment—October 15 to December 7—your coverage review should include Medigap policies that help close holes in basic Medicare coverage. About 9 million Medicare beneficiaries decided last year to also buy Medigap insurance plans, also known as Medicare supplement insurance.
[See 10 Places to Retire on Social Security Alone.]
"Because of Medicare's relatively high cost-sharing requirements, 90 percent of all beneficiaries have some source of supplemental coverage," says a recent Medigap analysis prepared by the Kaiser Family Foundation. "Beneficiaries with Medigap tend to include those without access to a relatively comprehensive employer-sponsored retiree health plan, those not poor enough to qualify for Medicaid to supplement Medicare, and those who choose fee-for-service Medicare rather than a Medicare Advantage plan."
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Generic Drug Savings in 2012 Medicare Plans
Tweet Share on Facebook October 4, 2011 Comment (8)Healthcare costs have been rising faster than overall prices, but some prescription-drug relief is on the way. Over the next few years, an abnormally large number of blockbuster drugs are scheduled to lose their patent protection, opening the doors to cheaper generic drugs. With this year's earlier Medicare enrollment period—October 15 through December 7—it makes sense to consider how your health insurance may be affected by generic drug prices.
[See 10 Ways to Boost Your Social Security Checks.]
Already, Medicare has projected that insurance premiums for Medicare's Part D prescription drug coverage will not rise in 2012. Savings from generic drugs are part of the cause, as are lower consumer drug costs mandated by the national health reform law.
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Understanding Your 2012 Medicare Enrollment Statements
Tweet Share on Facebook October 3, 2011 Comment (1)Every year, existing Medicare beneficiaries receive massive statements from their insurers setting forth the terms of next year's coverage, including premiums, coverage details, and any changes from the current year's Medicare. The statements aim to prepare consumers to make informed decisions during Medicare's annual enrollment period.
Never let it be said that the government has failed to include all details in these statements, which are known as the annual notice of change (ANOC) and the evidence of coverage (EOC). While private insurers send out the statements, they must be prepared according to government rules. A template for a combined ANOC-EOC statement provided to U.S. News by the Centers for Medicare & Medicaid Services (CMS) was 255 pages long.
