Dear Jeff – Recently, I had a conversation with a client who is turning 65 in June. She mentioned that she wasn’t planning to sign up for Medicare because she felt she didn’t need it. When I asked if she would be covered under her own or her spouse’s group plan, she said no. Confused, I inquired about her health insurance coverage, and she replied, “None.” Her reasoning was that she was very healthy and not a big fan of traditional medicine, so she thought she could take a different approach to healthcare in retirement. I felt it was crucial to explain why her decision could be a significant mistake for several reasons:

• Lifetime Penalties: While Medicare is technically optional, without creditable coverage, she would face lifetime penalties for any period she went without such coverage after turning 65.
• Financial Risk: Medical bills can quickly bankrupt even the most financially secure individuals.
• Cost-Effectiveness: Medicare is relatively inexpensive and widely regarded as the best health insurance most of us will have in our lifetimes.

Fortunately, she agreed and decided not to take the risk of moving through the last chapter of her life without health insurance. It’s important to remember that unless someone is covered under a large group plan (20 employees or more), they have a seven-month window to enroll in Medicare when they first turn 65. This window includes the month of birth, the three months before, and the three months after.

If you have any questions, please feel free to reach out. As always, thank you for the opportunity to be of service to you and your clients.

Thankfully the person in question listened to the advice of her insurance advisor, and they were able to prevent what could have been a very costly scenario in multiple ways.

We are committed to partnering with our clients to educate, empower, and engage them in achieving financial security. We embrace a collaborative team approach internally but also with your team of professional advisors, outside of finance. Please let us know if we can assist in selecting the right professionals to fill any gaps you may have. This includes professional services such as certified public accountants, attorneys, M&A Advisors, commercial bankers, and insurance professionals. If desired, we can take the lead role to coordinate strategies with your professional advisor team.