The High Deductible Plan F is the best supplement (also called Medigap) plan option available in Connecticut. If you go by the math, it should be the first supplement choice of anyone purchasing a supplement in Connecticut? So why isn’t everyone buying it? Read more
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There are multiple types of annuities that produce income. The three main types are a Single Premium Immediate Annuity (SPIA), Fixed indexed annuity with income rider and a deferred income annuity (sometimes called a longevity annuity). They key is to know the strength of each product and the best time/situation to use it. Read more
Medicare Supplement plans (Also called Medigap) are insurance policies that provide coverage on a secondary basis to Original Medicare. When a Medicare Supplement is purchased, it will pay for some or all of the Medical expenses not covered by Original Medicare. Connecticut is a unique Medicare Supplement state in a number of ways.
We receive a lot of questions about original Medicare, Medicare Supplement, Medicare Advantage and Medicare part D plans. A Q and A of the more common questions has been provided below.
Question: When does my original Medicare A and B plan start?
Answer: Generally, Medicare A and B starts the first of the month you turn 65. It never starts on the day you turn 65 unless your birth day happens to be on the 1st. Example: Bob is 65 on July 18th 2013. His Medicare A and B will start on July 1, 2013
Question: Do I need to sign up for Medicare A and B
Answer: If you are currently taking Social Security payments, you will automatically be enrolled in Medicare A and B. If you are not taking Social Security payments, you need to call the social security office and sign up for part B of Medicare or enroll online.
Question: How will I be billed for Medicare?
Answer: If you have elected Social Security payments, the part B premium will be taken out of your check automatically. If you have not elected Social Security, you will be billed quarterly.
Question: How much is Medicare A and B?
Answer: Part A cost nothing if you or a spouse worked at least 40 quarters (10 years) and contributed toward payroll taxes. Part B cost $104 per person (will go up in 2014) and increases for those earning higher incomes.
Question: Do I have to enroll in Part B?
Answer: No, you do not need to enroll in part B of Medicare but you will pay a 10% penalty for every year you are eligible and do not enroll. The exception to this is if you are actively working and receiving health benefits through your employer.
Question: Do I need part B if my employer gives me retiree benefits?
Answer: Its a trick question. If you are retired and getting retiree benefits, you do not have to enroll in part B BUT, you will still have a penalty if you need to enroll in part B down the road. (for example: The employer drops your retiree coverage) The only valid waiver to the penalty is if you are getting benefits and are actively working.
Question: Does Medicare A and B give me drug coverage?
Answer: No, Medicare A and B is for medical only. Drug coverage needs to be purchased through a Part D plan offered by a private insurance company.
Question: What levels of coverage do Medicare A and B provide?
Answer: Generally speaking, Medicare Part A provides hospital coverage and Medicare Part B provides coverage for physicians, testing and other outpatient care. For a full summary click the link MEDICARE A AND B BENEFITS
Question: How do people cover the things that Original Medicare does not cover?
Answer: They can purchase a Medicare Supplement plan (Also called Medigap) and a part D rx plan or they can purchase a Medicare Advantage plan (MAPD plan). Some people stay on A and B only and simply purchase a stand along Rx plan. (More often they take a supplement or MAPD plan however)
Review our MEDICARE FOR DUMMIES blog for additional information
Security Benefit SIA Annuity
The Security Benefit SIA annuity is one the highest income paying indexed annuities available. This product should be one of the first choices for clients that need guaranteed future income from an indexed annuity. The account crediting methods on this product are nothing out of the ordinary but the amount of income it can produce puts it in a unique class.
Sentinel Life has come out with the Summit Bonus Index Annuity with an optional income rider. The product is only available in the states of UT,FL and NC. The plan has a number of crediting methods but none of them provide anything that is not available with a number of other similar annuities. What makes this annuity special is the income rider they offer making it a great choice for the looking for max future income.
The Security Benefit Total Value Annuity is a unique product in the fixed indexed annuity business. The product uses innovative funds and offers unlimited growth potential without the risk of loss due to declining market conditions. It is obvious to see why this annuity is taking in money at unprecedented rate. Here, we will break down the product and provide the strengths and weakness instead of relying on hype and catch phrases.
Product Basics- The base of the annuity is the same as most other fixed indexed annuities. They have a 10 year surrender schedule, 10% free withdrawls per year, 7% or 8% bonus depending on the state you purchase it in and the usual income and death benefit riders that everyone offers. The base benefits are all standard for the industry but the crediting methods on the account value are what stand out for this product.
ATVI- The ATVI is one crediting method in this product which is unique. The account uses a futures commodities index. The idea behind the index is that the account performance is non correlated to the market. This means the accounts performance will not follow the performance of the stock market. A brochure of the ATVI is available in this post. Total Value Annuity ALTVI explained 2013 The account runs on a 5 year point to point basis. Interest is credited to the account value using a 5 year vesting period. At the end of the 5th year the money can be re allocated to different accounts if the client chooses. It should be noted that any money put into the ATVI must stay in the account for 5 years. It can not be reallocated prior to that. The is not an annual reset on this strategy but the gains are uncapped on this product leaving the opportunity for substantial growth over 5 years.
TVBI- The account functions in the same manner as the ATVI. (5 year point to point, 100% of gains, etc….) Note: there is a .50% annual fee/spread on this option. Unlike the ATVI, this account uses the Transparent Value Large-Cap defensive index which consists of 100 stocks from the Down Jones large cap stock market index. It blends this account with a 2 year US treasury futures index. The gains are uncapped after the .50% annual spread which gives this account a unique prospect for growth over 5 years. Security Benefit TVBI explained
Income Rider- The income rider on this product provides for a base 4% minimum growth on the income per year with any gains from the crediting methods stacked on top. Overall, this rider compares well with its competitors but it is unlikely to out perform the Security Benefit SIA annuity income rider. CLICK FOR INFO ON SECURITY BENEFIT SIA ANNUITY
The growth prospects on both account compare favorably against its competitors given the low annual caps in the market today. It is possible to allocate any percentage of the annuity account value both accounts. There are other more standard account crediting methods available as well but the caps on them are similar to those of many other annuities in the market. The TVBI and ATVI are what make this product stand out compared to the rest.
The majority of people turning 65 will be signing up for Medicare A and B. (Also called original Medicare) Those that are receiving Social Security payments will be signed up automatically while those that have not elected Social Security will need to call the local social security office. There is an easier way to sign up that most people are not utilizing.
Wellcare has three plan offerings in four counties of Connecticut (Hartford, Fairfield, New Haven, Tolland). Two of the plans are very competitive compared to their competitors which are the WellCare Access (Dual Eligible) and the WellCare Value (HMO). The Access plan provides a number of additional benefits for Dual eligible members including vision, hearing , travel and a $30 a month over the counter drug benefit. The plan also deems Medicaid and QMB members for an additional 6 months.
The $0 premium Wellcare Value plan holds a benefit advantage over its $0 premium competitors which are Aetna Value, United Medicare Complete Plan 2 and Connecticare $0 premium plans. The Value plan has a $10 primary and $35 specialist copay. The $100 major radiology and $200 outpatient surgery benefit are two of the plans best benefits.
We have provided a web tool that will allow anyone to quote and compare the 3 WellCare offerings in CT. You may also look up doctors, Medications, and create plan comparisons from one place. There is an enrollment tool which will allow prospective members to enroll online without the need to speak to a sales person.
CLICK HERE TO ACCESS THE ENROLLMENT AND QUOTE TOOL
Please feel free to call our office with any questions at 203-796-5403
Medicare Supplement plans (also called Medigap plans) are standardized in Connecticut. This means that plans must have the same benefits regardless of the company offering them. The only difference is in the service and the monthly premium of the plan. Supplement plans in Connecticut are organized by letters A-N. The most popular plans are F,N and L. Keep in mind that a Medicare supplement plan is secondary to original Medicare and have no network as a result. Medicare Supplement plans also do not come with drug coverage. That must be purchased separately through a PDP “Prescription Drug Plan”.
Premiums for all plans offered in Connecticut are attached in this blog. This includes every company that is offering a plan in CT and every plan letter they offer. Rates are subject to change from as the companies are allowed to have a rate increase once per year. This blog will be updated a few times during the year to ensure that accurate rates are being posted.
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