Penalty is a word a lot of people like to use to create fear in people getting ready to go on to Medicare! David Edge is back on the show this week to help you learn more about penalties on your premium and how to avoid them, this week on 65 and Counting!
Welcome back everyone, we’ve got a great success story of the month for you! I’ve provided a lot of tools in the past on how to avoid those penalties you hear people talking about when it comes to Medicare, but today David Edge is going to share a story with you on how you can avoid those pesky “Part D” lifetime penalties! So without any further delay, here’s David Edge with June’s Success Story of the Month!
Success Story
By David S Edge
Why didn’t They Warn Me!
I recently had to see a podiatrist about a potential foot issue, and as usual, the doctor was making small talk and asked what I did for a living? I replied that I do retirement planning for folks. “Retirement Planning? What exactly is that?” he asked.
Well, we educate and assist clients with options for financial retirement planning, when to turn on their Social Security income for maximum benefits, and guidance on Medicare plans. We educate them about the pros and cons of different planning options and warn them about the penalties of missing critical enrollment times.
Now curious, the doctor went on to ask questions about why he was paying a Medicare penalty for not having a drug plan. He didn’t enroll in one because he doesn’t take prescription medications. I enlightened him that even if he takes no prescriptions, Medicare requires enrollment in a Part D drug plan; otherwise, a penalty applies. And the penalty grows and compounds the longer you wait to enroll. Additionally, once you get the penalty, you pay it monthly for the rest of your life.
“That’s what happened to me!” he exclaimed and went on to ask, “Why didn’t anybody warn me?” The doctor being 68, had only gotten a Part D drug plan last year and wondered out loud, “Did I pick the right one?”
I let him know that there are dozens of Part D drug plans to choose from. Our staff at American Retirement Advisors contacts every client in September to remind them of the Annual Election Period October 15th through December 7th every year for making changes. We proactively request updated prescription drug lists from each client and assist them by shopping all the new plans for the new year. Sometimes the client’s prescriptions don’t change, but the drug plan they are on changes! Carriers change the monthly premium, the deductible, the co-pays, and the formulary of drugs they cover. Every year, a plan review is necessary to shop and switch to a more appropriate plan to start January 1st of each New Year.
“No one has ever told me that! I thought I’d be stuck on the same plans I picked from now on.”
“Doctor, I’m here because you are a specialist in Podiatry. You need a specialist for retirement,” I remarked.
After we completed my exam, I handed him my card on the way out and repeated the same thing I say to dozens of folks every day, “Call us, we can help.”
Wow! So the take away here is that even if you aren’t taking any prescription medications, you’ve gotta have some kind of prescription drug coverage whether it be a creditable plan through work, or with a Medicare Prescription Drug Plan!
What a great story that was! I hope you feel a little more confident in your knowledge of the penalty associated with not having a prescription drug plan! And remember, if you have a Medicare Advantage Plan, it’s most likely built right into your plan!
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