The cost of health care just seems to go up and up and up.

If you have original Medicare and have purchased a supplement you may have noticed that each year your coverage tends to get more and more expensive.

The problem is when you are living on a fixed income these increases can really hurt.

So what are some ways to lower your health care costs in retirement?

Medicare Supplement or Medi-gap policies can and SHOULD be shopped at least every other year to see if you can save money on premiums.

People are often afraid to change insurance companies because they get comfortable with their current plans and a known evil is better than an unknown.

However in this case that kind of logic can really get you in trouble.

You see All Medi-gap plans are regulated by the government and have identical benefits no matter who you buy them through.

So, if you have a plan G with one company like Blue Cross / Blue Shield, it offers identical benefits to a Plan G with Aetna.

So you really should not be afraid to switch.

Also, Medicare can be a competitive marketplace, and every now and then carriers will lower rates in a particular zip code in order to gain more business from a certain area where they want to compete and rates will become attractive to people who are willing to switch.

And you don’t have to give up your current plan until you get approved with the new one.

You should know however that getting approved is NOT a given.

If you have serious pre-existing health issues you may not qualify to switch and staying where you are at might just be the best bet for you.

Another way to save money particularly during the open enrollment period that runs from 10/15 through 12/7 each year is to shop your part D drug coverage.

Part D plans tend to change up their formularies every year.

What changing a formulary means to you is that what was treated as a tier-one drug (less expensive) last year might turn up on their tier two or three (more expensive) list this year.

These charges can really sneak up on you and the best way to stay ahead is to shop your drug coverage cost at least once per year during open enrollment.

If you need help shopping or evaluating your Medicare Supplement options we are here to help and do not charge for a consultation.

We mainly provide this service for existing retirement planning clients only, but if you found your way to this article give us a call and we will see what we can do to help you.

Give us a call today!

 

Disclosure: Investment Advisory Services offered through Retirement Wealth Advisors, LLC. (RWA) a Registered Investment Advisor.  Rockford Retirement Planning, Inc. (RRP,Inc.) and RWA are not affiliated. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

This information is designed to provide general information on the subjects covered, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that RRP,Inc. and its affiliates do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney.

Annuity guarantees rely on the financial strength and claims-paying ability of the issuing insurer. Any references to protection benefits or lifetime income generally refer to fixed insurance products. They do not refer, in any way to securities or investment advisory products or services. Fixed Insurance and Annuity product guarantees are subject to the claims‐paying ability of the issuing company and are not offered by Retirement Wealth Advisors, LLC.

Social Security/Government Program Disclosure: Antonio Filippone of Rockford Retirement Planning, Inc and Retirement Wealth Advisors, LLC are not affiliated with or endorsed by the Social Security Administration or any other government agency

MDRT Disclosure: The Million Dollar Round Table is a trade association to help insurance brokers and financial advisors establish best business practices and develop ethical and effective ways to increase client interest in financial products, specifically risk-based products like life insurance, disability, and long-term care. Annual qualification requirements include demonstrating a set annual production requirement and agreeing to a code of ethics but are not based on client experience or performance. For more information regarding the Million Dollar Round Table eligibility, please see https://www.mdrt.org/membership/requirements/. Membership in no way constitutes an endorsement from Million Dollar Round table or any client.

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