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Aetna Medicare Plan Changes Connecticut 2015

If you would like to learn about the Aetna Medicare Plan Changes Connecticut 2015, you should read this post.  Aetna Medicare will be making major changes to their Medicare Advantage plans in some Connecticut counties for 2015.  A quick summary of changes is listed below.  Call or email our office for specific information and CMS approved benefit summaries and other info.

• The current Aetna Value HMO

• $0 premium plan will be discontinued in Fairfield and New Haven counties as of January 1, 2015.  This means you will not have a plan as of January 1, 2015.   If you are in this plan currently you must enroll in a different Medicare plan if you want one for 2015.   There is a special enrollment period for this situation.   This allows consumers to enroll in a new plan anytime from December 15th, 2014 through the end of February 2015.

• The Aetna Value HMO

• will still be available at $0 monthly premium to those in Hartford, Litchfield and Tolland counties.  Benefits have some minor changes. They are now going to a $25 primary as well as a $50 specialist copay.   They are also moving the inpatient hospital benefit to $300 for days 1-4.

• Aetna will have a new $0 premium plan called Aetna Elite HMO

• available 1-1-15 for those in New Haven and Fairfield county.  The plan boasts low copays ($10 primary/$35 specialist) and $550 per stay hospital inpatient copay.   HOWEVER, it will have a $1,000 annual deductible for that will apply to major services.  Office visits, preventative benefits, lab and some other benefits will not apply to the deductible and will still be a copay however.
• Aetna will still offer the Standard HMO plan with only small benefits changes and a 2015 premium of $118.00 a month in Hartford, New Haven , Fairfield, Litchfield and Tolland counties.
• Aetna will still offer the Standard PPO plan with only small benefits changes and a 2015 premium of $101.00 a month in Hartford, New Haven , Fairfield, Litchfield and Tolland counties

Please either call or email our office with any additional questions at 203-796-5403 or by email at Admin@croweandassociates.com.

Obama Care  in Connecticut

The purpose of this post is to provide an understanding of Obama Care in Connecticut to help consumers make a better decision when they decide to enroll or not.    Our office is registered to advise the general population on which plan may be best for them and to process an enrollment in person or over the phone. Please review the list of bullet points below and call or email if you have any questions.

• Obama Care is run by Access Health in CT.  Prospective members sign up for the plan through the Access Health website.  Once you register, you can complete and submit an application.  Access Health then sends the insurance company that you chose during your application process the information is then sent to the insurance company that was chosen during the application process.  This will then prompt them to send out a monthly bill as well as ID cards.
• Subsidies are available to those within the income guidelines.  They are automatically applied to the premium and the bill received in the mail will be reduced by the amount of monthly subsidy being received.  Subsidy levels depend on the total annual income of the family and the number of family members.  They do NOT look at prior year income but look at current years income.  A person applying in 2014 is going to be provided or not provided a subsidy based on their 2014 income not prior years income.

• Subsidies levels are as follows:

• Single person under $45,960 adjusted gross is eligible for a subsidy.  A family of 4 under $94,200 is eligible for a subsidy.    For an example of the amount of subsidy provided we can use a 61 year old male.  At $47,00 annual income he is not eligible for subsidy and would pay $691 a month for a silver plan.  At $32,000 of income that same person would only pay $150.09 a month for the same silver plan.   A family of 4 making $96,000 a year would pay $1217.22 a month for a silver plan while a family of 4 making 52,000 a year would pay $217.00 a month for the same plan.
• Subsidies are only available by applying through Access Health
• Current companies offering plans are Anthem BCBS, Connecticare and Healthy Partners.  United and Harvard Pilgrim will  also be available in 2015
• Anyone can enroll in Obama Care but only those under the income level will get a subsidy

• The company sends a paper bill every month.

• The doctor networks are smaller than the normal networks.  We have found that the companies Obama networks have about 70% of the doctors that are in the companies normal networks.
• For those under the income guidelines, this is the lowest cost insurance they will be able to buy on an individual basis by a substantial amount.
• The benefits of the Obama Care plans are more comprehensive than the comparable plans out on the open market
• Obama Care will base your income on the total family income, even if the whole family does not enroll in the plan.

You can either call or email us with any questions or help enrolling.  We do not charge a fee for help with enrollments.  The insurance companies pay us directly.  The rates are the same with or without our assistance enrolling.   Office number is 203-796-5403 or email Edward@croweandassociates.com

Americo LibertyMark 15% Bonus Annuity

Americo LibertyMark 15% bonus annuity.  Until recently, the state of Connecticut has given approval to very few bonus annuities.  Equitrust had the largest bonus at 6%.  Although, now there is a 13% bonus product in CT with the approval of the Americo LibertyMark annuity. (Please Note:  The bonus is 15% in many other states).   The product comes with both a 7 year term as well as a 10 year term version.  This means that you would need to invest your money into the product for either 7 or 10 years before you could obtain the entire amount without a surrender charge.   In addition to the 13% bonus, LibertyMark has one of the stronger interest crediting methods available with a 2 year S & P annual point to point at 80% or 60% participation. This depends on the option that you select.

 LibertyMark

Structures their bonuses in a unique manner.  LibertyMark pays you the 13% bonus out at two different times.  When yo make your initial deposit you will receive a credit of a 5% bonus.  This means that the remaining 8% is credited at the end of year 10 on the total accumulation value of the product.  As an example, assume someone puts $100,000 in the product and it grows to $180,000 at the end of year 10.  The 8% bonus would be based off the $180,000 which would equal a bonus of $14,400.00  As with all fixed annuities, the principal investment is protected.   This means that the return in a given year can not go below 0% even if the market is down.

Please contact us if you have questions or would like to learn more.  You can either call our office at 203-796-5403 or email us at Edward@croweandassociates.com.  We are here to help you with all your insurance or investment needs.

CLICK FOR AMERICO LIBERTYMARK BROCHURE

CLICK FOR LIBERTYMARK STATE AVAILABILITY

CD Type Fixed Annuity Rates

In this post Crowe and Associates gives clients some information about CD Type Fixed Annuity Rates.  The more options you are aware of for your investment dollars the better decisions you can make.   A fixed annuity works in a very similar manner to a bank CD.  The insurance company offers a fixed rate.  That rate does not change for a specific set number of years.  At the end of the term, the money is free of any type of surrender penalty. You can then either leave it in the account, cash it out or move it into a different investment.  For example: A five year fixed annuity at 2.85% will have a guaranteed payment of 2.85% per year.  You can move that money anywhere you want at the end of the 5th year with no penalty.

  A fixed annuity does have surrender penalties.

The penalties apply only if you take out more than 10% of the money  in any given year prior to the end of the term.  Unlike a bank CD, fixed annuities are not FDIC insured.  Although, they are backed by the state of issue up to a specified amount. The amount in Connecticut is currently up to $500,000.

Like a CD, companies compete with each other to offer the highest annuity rates for any given term.  In fact,  Guggenheim currently offers terms of 3 to 10 years.  They have the best rates available for each individual term.  We include a current rate sheet in this post, below for your review.

CLICK FOR GUGGENHEIM CD TYPE ANNUITY RATES

 Crowe and Associates would like to help you with your both your insurance and investment needs.  Please call us if you have any questions or need any insurance or investment advice.  You can reach us either by phone at 203-796-5403 or email at Edward@croweandassociates.com.

Medicare Advantage Open Enrollment Connecticut 2015

Crowe and Associates wants to make sure all our clients are aware of the Medicare Advantage Open Enrollment Connecticut 2015.  This is a great opportunity for both uninsured individuals as well as families to get much needed health coverage. Medicare Advantage plan companies are able to make plan and benefit changes to existing plans every January, during open enrollment. There will be major changes this year for many plans in Connecticut.  These changes include premium increases, plan terminations, as well as the introduction of referral based plans and more.

Medicare Advantage plans are currently offered in Connecticut by United Healthcare (AARP and  non AARP branded), Aetna, Connecticare, Anthem BlueCross BlueShield and also Wellcare.  Most of these companies will be making major changes to existing plan holders benefits.   Please note:  Medicare Supplement plans such as the AARP Medicare supplements (also called Medigap) do not change benefits.  They are only subject to rate increases.

The Medicare Open Enrollment Period

(OEP) is your opportunity to review your plan and make changes if necessary.  The OEP period runs from October 15th to December 7th.  If you apply for any changes during that period  they will be in force as of January 1, 2015.   OEP is the only opportunity during the year to change plans or companies. (Unless you have a special election).  Crowe and Associates works with all MAPD plans offered in Connecticut for 2015.  As a result, we are able to review all available plans to help you find the best option.  Plan reviews can be done by phone, at our office in Brookfield, our various library seminars or even in the home.

Please feel free to contact us if you would like to schedule a review for the open enrollment period.  You can contact us by either calling our office at 203-796-5403 or emailing us at admin@croweandassociates.com.

Short Term Health Insurance Connecticut

Crowe and Associates would like to offer our clients some information about the Short Term Health Insurance Connecticut.  We want you to be aware of all you options when you are trying to decide what type of insurance is the best choice for you and your family. There is now a short term health insurance plan available to people in Connecticut.

HCC offers a well priced short term health insurance plan

This plan can run for up to 11 months to members.  This plan is a great option for college students and anyone that wants insurance but missed the enrollment deadline for the Affordable Care act plans. It is also a great option for those that are 64 years of age and need a plan to carry them over until they are Medicare eligible.  Plans can be purchased for as little as one month up to a maximum of 12 months.  Enrollment in the plan is done online in about 10 minutes for those that want to apply.  The plan has the following features…

• Choose from deductible levels of $250 to $7,500
• You purchase this plan on a month by month basis for a maximum of 11 months
• 5 general health questions on the application
• Online enrollment
• Premiums up to 70% lower than standard health insurance plans
• Coverage can begin the day after applying
• In fact, Anyone can apply for this insurance coverage

We have provided a link below that will allow you to quote rates as well as enroll in a plan of your choice.  If you have any questions, please feel free to either call our office at 203-796-5403 or email us at Edward@croweandassociates.com.  We are always happy to help you with any insurance needs that you may  have.  We want you to feel confident with your insurance coverage choices.

CLICK FOR ONLINE RATES AND ENROLLMENT LINK

Affordable Care Act Enrollment And Plan Changes

We want to make sure everyone is aware of both the Affordable Care Act Enrollment And Plan Changes. Affordable Care Act plans (Also called Obama Care) are those purchased through the Connecticut Exchange via the Access Health Website.   A premium subsidy is only available to those who enroll through the Access health site.  Anthem , Connecticare and Healthy Partners are the three insurance companies available through the exchange.   People that enrolled outside of the exchange are not eligible for any type of premium help.  For those that did enroll via the exchange there rules regarding new enrollments and plan changes for existing members.

New Enrollments–

The general period for someone to register and enroll in a plan through the Access Health site ended on March 31, 2014. The site does not accept new enrollments for the remainder of the year.  A new enrollment window will open in October of 2014.  This will allow new members to apply for a January 1, 2015 start date.

Special Election Period–

Additionally, some people are allowed to enroll in a plan outside of the enrollment period.  This is true if they have a special election reason to do so.  Special elections reasons include, losing group health insurance or an individual health plan during the year, moving to a different state, a change in Medicaid or Husky status and losing COBRA benefits.

Plan Change for existing members–

In fact, Existing members are not allowed to make a plan change outside of the normal enrollment period. This is true, unless they qualify for one of the special election periods above.  A doctor who decides to no longer accept or participate with a Affordable Care Act plan during the year is not a valid reason to make a plan change.

Crowe and Associates is here to help you.  Call us if you have any questions about health insurance.  Please contact us either by phone at (203)796-5403 or by email at Edward@croweandassociates.com.

Income Annuity Information

We have provided you with some Income Annuity Information in this post.  The term “Income Annuity” is a catch all.  We use this term for any annuity that produces guaranteed future income.  There are three types of annuities that can create guaranteed future income.  These annuities are either a SPIA (Single Premium Immediate Annuity), a deferred income annuity or an annuity (fixed indexed or Variable) with an income rider.  All three have different sweet spots which can help someone determine when to use each type.  A review of each is provided below.

• SPIA-

•   A single premium deferred annuity creates immediate income that will last for a pre defined amount of time.   You can use the annuities to provide income for one person for life, or a couple for both lives.  Although, you can also use it for a set amount of time such as 20 years.   The biggest thing to be aware of is that the insured no longer owns the lump sum.  The insurance company and/or bank takes control of the lump sum of money.  They take the money in return for paying a guaranteed income stream that will not change.   If someone puts $300,000 in a SPIA with a life with 20 years certain option, this will guarantee payment for life.  In the event that the investor dies prior to receiving payment for  the 20 years, the beneficiary will receive the income until they have received the total 20 years of payments.   The trade off is that the insured no longer has access to the lump sum of money.

• WHY WOULD SOMEONE USE THIS?-

•  A SPIA will pay out the higher ratio of guaranteed income than the income rider or the deferred income annuity.  This is most useful for someone that has other assets and can afford to dedicate a portion of assets to create a guaranteed income stream.  The lump sum is no longer available so it is important to have other liquid assets if you decide to use this option.

• Deferred Income Annuity-

• The product is very similar to a SPIA. The difference is that income does not start immediately.  It starts at a pre determined future date.  The longer the deferral the higher the future income payment is.  You can calculate payments on a guaranteed bases.  The insured will know exactly how much they will get at that future date.

• WHY WOULD SOMEONE USE THIS?-

• If the insured has a need for future income, this is a good way to create an income stream without having to worry about market performance or  anything else.  They just dedicate the amount of money they need and then they can be sure income will start when it is necessary.  The flaw is that the future  income payout is not competitive with the future income payout that some other riders create.

• INCOME RIDER-

• When an income rider is attached to a fixed indexed annuity or a variable annuity it allows the insured to create a future income at any year they choose.  They do not need to pre determine the year income will be taken and they can see exactly what the income would be in any given year.  They also maintain control over the lump sum investment and can continue to accrue interest on the money.  The income payout exceeds that paid by the Deferred Income Annuity.  It is critical however, that you pick the most competitive company, as the guaranteed payout amounts vary tremendously.  This depends on the company that you choose to  use.  Additionally, there is an annual fee on most income riders.

• WHY WOULD SOMEONE USE THIS?

• If someone is looking for the highest deferred guaranteed income payment, the right income rider is the best option.  In fact, you would also maintain control of the lump sum investment if you use this approach.

CLICK HERE IF YOU NEED A QUOTE

Risk Free Investments

In this post we explain some things about Risk Free Investments.  There are a number of risk free investments (no risk to principal) available to those looking for safe/conservative ways to earn interest on investments.  While it is smart to be conservative when approaching retirement or in retirement, it can be difficult to keep up with inflation only using strategies without market risk.  Money markets, CD’s and Annuities are three popular choices of focus in this post.

Money Markets

While Money Markets are safe and a convenient place to keep cash, they are simply not going to yield any type of meaningful return.

Certificates of Deposit

While better than a Money Market return, CD’s are still averaging less than 2% on a 5 year commitment nationally.  They are certainly safe but will not be likely to keep pace with inflation.  Market Linked CD’s may be a better choice for someone that is looking for the FDIC backing provided by CD’s.  Market linked CD’s provide principal protection but have a variable return that can range from 0% up to 8% or 9% depending on the terms and bank.

There are a number of different crediting strategies used but one of the more common ones is the “Basket of Stocks” approach.  The bank picks out a group of stocks (usually between 5 and 15).  If the overall portfolio is level or positive for the year, you will pay the stated/declared interest rate.  If there is an 8% interest rate declared, that is the amount you would pay for that year.  They repeat this process for the duration of the commitment.  If an 8% declared rate product is on a 7 year surrender schedule, the client will receive 8% for every year the account is positive.  They will receive 0% for years it is negative.   As a result, Market CD’s can be a good approach for the more conservative investor.

Annuities-

Annuities can be a good approach but you must do a great deal of research before you purchase one. There is a big difference between a SPIA, a Fixed annuity and an Indexed Annuity.   A fixed annuity (Also called a MYGA) can offer slightly higher rates than CD’s with the same term years. As of this post, the best 5 year fixed annuity is at 3.4%.

A SPIA (single premium immediate annuity) 

This product is based on your income and is not appropriate for any type of accumulation. Fixed Indexed Annuities can be a great option for account growth.  Although, they can also be a poor choice  this depends on which company and product you choose.  Fixed Indexed Annuities use market indexes (usually the S & P 500) to determine the amount of interest to credit to accounts.

They have crediting methods that provide a portion of the index growth to the account.  This is where there can be a wild difference in companies.  As an example:  One carrier currently credits the gain in the S & P 500 per year up to  a cap which is currently at 2.75%.  This means the most a client can get in a year is 2.75% return regardless of how high the market goes.  There is another carrier that credits 75% of the gain of the S & P over a 2 year period.  This would have provided over 22% interest  to an account in the 2012 to 2013 time period.   Obviously, it is important to choose the plan with the best crediting methods.  Because if you choose the wrong one it can cost a bundle.

CLICK HERE FOR A QUOTE

Medicare Savings Program Connecticut

Medicare Savings Program Connecticut (MSP) is a drug help program available to Connecticut residents on Medicare.   The program provides help for drug copays, deductibles and premium to those who qualify based on income.

MSP is available to individuals and couples making under stated income guidelines which have been provided here:

• QMB – $2,088.90 for a single person and $2,816.85 for a couple
• SLMB – $2,286.90 for a single person and $3,083.85 for a couple
• ALMB – $2,435.40  for a single person and $3,284.10 for a couple

MSP applications and brochures

Do you have questions or need more help?  Are you looking for more information? If you are, we can help with whatever you may need with MSP, Medicare plan choices or any other questions.  Call us at 203-796-5403 or email Edward@croweandassociates.com