Medicare

Medicare: How to Save Money on Your Supplement Plan

Tomasina Hill

June 11, 2024

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Introduction:

If you’re already on Medicare and unsure if you’re overpaying for your supplement insurance, this guide is for you. Whether you’ve been on Medicare for a few years or are just curious about potential savings, we cover essential tips and insights to help you make informed decisions about your Medicare supplement plan.

Understanding the Basics of Medicare

Medicare is divided into several parts:

Part A covers hospital and skilled nursing facility care.
Part B covers doctor visits and outpatient services.
Part C (Medicare Advantage) is an alternative to Original Medicare, offered by private companies.
Part D covers prescription drugs.

Medicare Supplement (Medigap) policies are designed to cover the gaps in Original Medicare (Parts A and B). These policies help pay for out-of-pocket costs such as copayments, coinsurance, and deductibles.

Why It’s Important to Review Your Supplement Plan

Medicare supplement prices tend to increase over time. If you haven’t checked your rates in the past three to four years, you could be overpaying. It’s essential to periodically review your plan to ensure you’re getting the best value for your money.

How to Check Your Medicare Supplement Rates

Our video walks you through how to use our free rate comparison tool, which allows you to find the best rates without sharing any personal information. Simply input your details and see how your current rate compares to other available options. This tool is available on our website and can help you make an informed decision about whether to switch plans.

Real-Life Savings Examples

We share several real-life examples of clients who saved money by reviewing and updating their Medicare supplement plans. For instance, a client who was paying $87.33 per month in 2019 saw her premium increase to $177.78 by 2024. By switching to a different plan, she was able to significantly reduce her monthly payments.

Navigating the Underwriting Process

Switching plans may involve underwriting, but don’t let this deter you. The underwriting process includes answering some health questions, but many conditions, such as heart problems or cancer, can be considered for coverage if they are well-managed and enough time has passed since treatment. We work with over 30 different companies, each with unique underwriting criteria, to find the best fit for your needs.

Conclusion: Take Action to Save Money

If you can’t say within a dollar how much you’re paying for your Medicare supplement, it’s time to take action. Check your bank statement to see your current premium and use our rate comparison tool to explore potential savings. You can also contact us for personalized assistance in reviewing and updating your plan.

Get In Touch

Contact us today with any questions, concerns, or just to stay connected.

Have questions? Contact us today.

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Medicare

Medicare: How to Save Money on Your Supplement Plan

Tomasina Hill

June 11, 2024

Share

Sign Up For Our Newsletter To Receive Weekly Updates.

Understanding the Upcoming 2026 Income Tax Increase: What You Need to Know

A Brief History of the Tax Cuts and Jobs Act (TCJA)

In today’s Cardinal lesson, we’re discussing the significant changes coming to income tax rates in 2026. This isn’t a proposal but a law already set in motion. The Tax Cuts and Jobs Act (TCJA), passed in 2017 and effective from January 1, 2018, brought about substantial reductions in income taxes. However, these reductions were only funded for eight years, meaning they will expire at the end of 2025.

What Changes to Expect in 2026

As of January 1, 2026, the tax rates will revert to their 2017 levels, adjusted for inflation. Key changes include:

The 12% bracket will increase to 15%.
The 22% bracket will rise to 25%.
The top rate of 37% will revert to 39.6%.

Not Just a Proposal

It’s crucial to understand that this change is already the law. Many people mistakenly believe that the tax rate increases are still under discussion. However, unless Congress enacts new legislation, these higher rates will take effect as scheduled.

Implications for Your Financial Planning

Impact on IRAs and 401(k)s

With the current lower tax rates, now is the time to consider strategies like Roth conversions. By converting funds from a traditional IRA to a Roth IRA now, you can potentially save a significant amount in taxes over the long term.

Why Planning Ahead is Crucial

For individuals with substantial retirement savings, understanding these changes is vital for effective tax planning. The window to take advantage of the current lower tax rates is closing, and planning ahead can make a significant difference.

Case Studies and Planning Opportunities

Hans Scheil and Tom Griffith discuss specific case studies and planning strategies in our latest video. These examples illustrate how different scenarios can be managed effectively:

Case Study 1: A married couple with an adjusted gross income of $150,000 in 2024 can convert part of their IRA to a Roth IRA, taking advantage of the lower current tax rates.
Case Study 2: High-net-worth individuals with large IRAs can save substantial amounts in taxes by planning conversions over the next two years.

Estate Tax Considerations

The TCJA also doubled the estate tax exemption, which will revert in 2026. This change can significantly impact high-net-worth individuals, making estate planning more crucial than ever.

Action Steps to Take Now

Review Your Current Tax Situation: Analyze how the upcoming changes will affect your finances.
Consider Roth Conversions: Take advantage of the lower tax rates before they expire.
Plan for Estate Taxes: Assess your estate plans in light of the changing exemptions.

Conclusion

The changes coming in 2026 are significant, but with proper planning and informed decision-making, you can navigate these changes effectively. Watch our video for more detailed insights and personalized advice.

Get In Touch

Contact us today with any questions, concerns, or just to stay connected.

Have questions? Contact us today.

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