Monday, June 27, 2022

Does Medicare Have Life Insurance

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What Assets Are Included

Medicare and Life Insurance: A Balanced Approach

Your assets include money that you have across all types of savings accounts, checking accounts, and investment accounts. Make sure to consider your retirement accounts like an IRA or 401, as well any stocks or bonds you own. Real estate that you own other than your primary residence also counts toward your total assets in most cases.

Your assets do not include your home, a car, a burial plot, furniture, or any other personal items. Life insurance policies are excluded and you can subtract $1,500 per person for burial expenses. You donât have to include any advance tax credits you get, such as for the earned income tax credit, or money you received for housing assistance. You can find a complete list of exemptions on the SSA website.

What Isnt Covered By Medicare

The biggest potential expense thats not covered is long-term care, also known as custodial care. Medicaid, the federal health program for the poor, pays custodial costs but typically only for low-income people with little savings.

Other common expenses that Medicare doesnt cover include:

  • Hearing aids and exams for fitting them.

  • Eye exams and eyeglasses.

Mechanics Of Permanent Life Insurance

To understand how a funeral trust works, you first need to understand how permanent life insurance works. This is important to understand so you understand what Medicaid and nursing homes go after.

Permanent life insurance policies have cash value. This cash value is yours. At every point, your policy is made up of part cash value and part insurance. When you die, the carrier pays the insurance part. The cash, again, is yours.

For example, if you have a $25,000 whole life insurance policy and $10,000 is cash value, $15,000 is the insurance.

Your cash value grows over time. Every year, your policy earns more cash. And, every year, the carriers insurance responsibility is less and less. This is for whole life insurance.

Universal life operates its cash a little differently. Your cash and insurance component are separate, and your cash has the ability to grow independently. However, premiums for universal life are variable and the carrier may, at some point, require a premium increase for proper funding.

Understand that Medicaid is after the cash value in your life insurance policy, not the insurance component. The cash value is yours, and this is what Medicaid forces you to liquidate upon the spend down process.

The cash is what we want to protect and transfer to the trust.

You may think, John, I have a whole life policy for $25,000 with $20,000 cash. You mean I can only transfer the $20,000, and not the $25,000?

Yes, only the $20,000.

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Can Life Insurance Coverage Impact Medicaid Eligibility

If you have a permanent life insurance policy, it may impact your eligibility for Medicaid. This is because there is a limit on assets you can own to qualify for Medicaid.

Some permanent insurance policies, like whole life insurance, have an investment-like component called a cash value that can be accessed while youâre alive. Because you are able to use the cash value while youâre alive, itâs considered an asset when applying for Medicaid.

What Other Kinds Of Pers Systems Do Medicare Advantage Plans Cover

Does Medicare Cover Pre

Some of the personal emergency response systems that may be covered by Medicare Advantage plans include:

  • Bracelets or necklacesThese wearable alert systems have a button that can be pushed during an emergency to alert a human monitor or dispatcher. Some devices can even detect when the user has fallen and will automatically dispatch help.
  • SpeakerphonesThese devices allow the user to communicate with the monitoring center so the user can describe the situation in more detail and the dispatcher can provide immediate feedback while help is on the way, all without having to reach out for or hold a traditional phone.
  • Cellular medical alert systemsPERS devices with cellular capabilities use a GPS to pinpoint the location of the user and send help. These devices are well-suited for seniors who drive or are otherwise mobile outside of their home.
  • Activity tracker systems. These systems track a users daily activity with the goal of improving sleeping habits, diet and exercise through monitoring.

If you want to find a Medicare Advantage plan that covers Life Alert, you can speak with a licensed insurance agent to compare available plans in your area.

Explore Medicare Advantage plan benefits in your area

Or call to speak with a licensed insurance agent. We accept calls 24/7!

About the author

His work has been featured in outlets such as Vox, MSN, and The Washington Post, and he is a frequent contributor to health care and finance blogs.

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What Is A Funeral Trust

To solve the Medicaid and life insurance problem, a funeral trust works nicely.

Just as it sounds, it is a trust.

You may know what a trust is or have an idea. But, there are a couple of types of trusts. One type of trust allows you to maintain control of it. Because of this control, Medicaid and creditors could legally force you to use the value inside the trust to pay off debts, etc, including nursing home costs.

This isnt the type of trust used for a funeral trust.

A funeral trust is irrevocable. This means the trust protects the value from Medicaid, creditors, etc. They cant get at it, cant touch it, and cant force you to use it.

Conversely, neither can you.

Once the money is in there, its in there. You cant borrow from it, you cant change it, nothing

But, why would you want to change it? The purpose is to prevent Medicaid or the nursing home to use the cash from your life insurance policy.

From that standpoint, the funeral trust serves its purpose and rather nicely.

Just as it sounds, the money pays out for your funeral or burial expenses.

For 95% of final expense whole life insurance policies, that is the typical purpose. So, the purpose of the trust remains the same: to pay for your funeral or burial expenses.

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Medicare Prescription Drug Coverage

Medicare drug coverage helps pay for prescription drugs you need. To get Medicare drug coverage, you must join a Medicare-approved plan that offers drug coverage .

Learn more about how to get Medicare drug coverage.

Each plan can vary in cost and specific drugs covered, but must give at least a standard level of coverage set by Medicare. Medicare drug coverage includes generic and brand-name drugs. Plans can vary the list of prescription drugs they cover and how they place drugs into different “tiers” on their formularies.

Medicare Faqs And Information To Consider

Tricare For Life: Do You Need Medigap too?

Automatic Enrollment:

If you are already receiving Social Security benefits, Railroad Retirement benefits, or Federal Retiree benefits, your enrollment in Medicare is automatic. Your Medicare card should arrive in the mail shortly before your 65th birthday. Check the card when you receive it to verify that you are entitled to both Medicare Parts A and B.

Initial Enrollment Period:

If you are not eligible for Automatic Enrollment, contact the Social Security Administration at 800-772-1213 or enroll online at, or visit the nearest Social Security office to enroll in Medicare Part A and Medicare Part B. You have a seven month window in which to enroll in Medicare without incurring a penalty. If youre not automatically enrolled in premium-free Part A, you can sign up for it once your Initial Enrollment Period starts. Your Part A coverage will start six months back from the date you apply for Medicare, but no earlier than the first month you were eligible for Medicare. However, you can only sign up for Part B during the times listed below.

General Enrollment Period:

  • General Enrollment Period for Medicare Parts A & B

If you have coverage through a current employer, you are not required to enroll in Medicare Part A and B. Below are some things to keep in mind about each part of Medicare.

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Benefits Of A Final Expense Policy

There are several advantages to adding a final expense policy into your retirement plan. First, having this type of coverage can keep your spouse from having to tap into your retirement savings to pay for final expenses. That’s important if you’re concerned about your spouse having enough assets to maintain his or her lifestyle after you’re gone.

Another benefit is the flexibility that these policies offer. For example, you can choose between a term or whole-life policy and choose a specific dollar amount that you’d like to designate for final expenses.

If you’ve made your funeral arrangements well in advance, you can purchase enough coverage so there are no surprises for your spouse.

What Is Medicare Part B Medical Insurance

Medicare Part B provides outpatient/medical coverage. The list below provides a summary of Part B-covered services and coverage rules:

This list includes commonly covered services and items, but it is not a complete list. Keep in mind that Medicare does not usually pay the full cost of your care, and you will likely be responsible for some portion of the cost-sharing for Medicare-covered services.

The 2021 Part-B premium is $148.50 per month

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Why Choose Cigna For Your Medicare Coverage

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Shop Medicare Advantage, Part D, and Medicare Supplement Insurance optionstheres a wide range to meet all lifestyle needs.

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We make it easy to understand how Medicare works, and help you choose a coverage option thats right for you.

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Medicare Advantage Policy Disclaimers

All Cigna products and services are provided exclusively by or through operating subsidiaries of Cigna Corporation. The Cigna name, logos, and other Cigna marks are owned by Cigna Intellectual Property, Inc. All clinical products and services of the LivingWell Health Centers are either provided by or through clinicians contracted with HealthSpring Life & Health Insurance Company, Inc., HealthSpring of Florida, Inc., Bravo Health Mid-Atlantic, Inc., and Bravo Health Pennsylvania, Inc. or employees leased by HS Clinical Services, PC, Bravo Advanced Care Center, PC , Bravo Advanced Care Center, PC and not by Cigna Corporation. The Cigna name, logos, and other Cigna marks are owned by Cigna Intellectual Property, Inc. All pictures are used for illustrative purposes only.

Cigna contracts with Medicare to offer Medicare Advantage HMO and PPO plans and Part D Prescription Drug Plans in select states, and with select State Medicaid programs. Enrollment in Cigna depends on contract renewal.

Medicare Supplement Policy Disclaimers

Medicare Supplement website content not approved for use in: North Dakota and Oregon.

Costs Of Medicare Part B

How Much Does Medicare Cost?

Part B Premium The monthly premium in 2021 is $148.50/month or more depending on the individuals annual household income. You can learn more about what your premium might be by visiting the Part B page on Medicares website. Individuals with very low income may qualify for coverage of their Medicare Part B premiums through their states Medicaid services.

Part B Deductible Medicare Part B has an annual deductible of $203 in 2021. While the Medicare Part B deductible isnt too significant, it comes with a 20% coinsurance that does not have a cap. So, doctors services for both ongoing required outpatient services and inpatient services for significant surgeries and hospital stays can cost individuals tens of thousands of dollars out-of-pocket. This can prove to be unaffordable and can eat through any savings you might have put away for retirement. At a time when youre dealing with the stress of a significant medical issue, you shouldnt have to also worry about the financial implications. To protect against exorbitant medical bills, many people will consider purchasing a private insurance policy called a Medicare supplement insurance policy.

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What Are The Four Parts Of Medicare And What Do They Offer

Medicare Parts A and B are known as Original Medicare. Parts C and D are voluntary coverages.

Medicare Part AHospital insurance

Covers inpatient hospital stays, up to 100 days of care in a skilled nursing facility, hospice care and some home health care

Medicare Part B

Covers certain doctors’ services, outpatient care, medical supplies and preventive services

Medicare Part CMedicare Advantage

Includes benefits equal to Parts A and B. Offers additional benefits that vary, usually within a certain provider network, depending on the company and plan you choose

Medicare Part D

Covers many medications that are prescribed by your doctor or other qualified health professionals

Heirs With An Immediate Cash Need

Estate planning can help your heirs avoid a costly and time-consuming probate process. At the same time, keep in mind that beneficiaries can typically collect the death benefit from a life insurance policy very shortly after providing the insurer with a death certificate. So if you have a complicated estate, or if theres the potential for legal challenges, you could help your spouse and children avoid serious financial problems by guaranteeing them a life insurance death benefit.

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What Is Life Alert

Life Alert is a type of response system that alerts emergency providers in the case of a medical emergency. If you have Life Alert or another brand of PERS, you can wear the system all day. It usually comes as a wristband or a necklace.

If you experience an emergency, you just have to press a button and it will activate your phone, connecting you with an emergency dispatcher. You may be able to designate a specific health care provider to call, such as your caregiver or your primary care doctor.

Some advanced systems also detect movements such as a serious fall and can alert emergency services, even if you dont press the device button.

Learn more about medical alert systems by reviewing this guide from The SeniorList.

What Is The Social Security Administration

Have You Considered “Living” Life Insurance?

Social Security is the nations largest publicly funded program. It consists of two parts: Old Age and Survivors Insurance and Disability Insurance .

Every year that you work, you pay into social security and earn credits. The more credits you earn the more benefits you are eligible for later. The money you pay in goes into U.S. Treasury securities.

These funds are used to payout benefits. This is not setup in individual trusts, but just one trust fund use to pay for all benefits.

Social Security pays monthly benefits to retired workers as well as people who are disabled and no longer able to work. In addition to this, the funds are used to pay for Medicare coverage and survivor benefits to qualified people.

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Medicare Doesn’t Cover Long

One of the largest potential expenses in retirement is the cost of long-term care. The median cost of a private room in a nursing home was roughly $105,800 in 2020, according to the Genworth Cost of Care Study a room in an assisted-living facility cost $51,600, and 44 hours per week of care from a home health aide cost $54,900.

Medicare provides coverage for some skilled nursing services but not for custodial care, such as help with bathing, dressing and other activities of daily living. But you can buy long-term-care insurance or a combination long-term-care and life insurance policy to cover these costs.

What Does Medicare Part D Cover

While Medicare Parts A & B have been around since 1966, the Medicare Part D prescription drug plan was first released in 2006. While Medicare Part D is elective coverage, you will likely receive a penalty if you dont apply for coverage when it is first available to you.

Medicare Part D is a Medicare program that is administered through private insurance companies approved by Medicare. In most states, Medicare enrollees will have access to over 30 Medicare Part D drug plans which can make the process of choosing the best policy a little daunting.

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Will Medicare/medicaid Pay For A Medical Alert Device

One of the many questions those on Medicare or Medicaid ask is whether or not the programs will cover the cost of a fall detection device or other types of medical alert devices, like the Lively GreatCall medical alert. These emergency response system devices are usually worn on a lanyard around the neck or on your wrist and allow senior citizens to contact emergency services if they fall simply by the press of a button. If your system features a fall detection option, then in most cases, the pendant will automatically call for help if it senses a fall. This can be life-saving in the case where you are unable to get up or reach the telephone. Some can even have location tracking which will allow your family and emergencies services to know where to find you.

So, will Medicare or Medicaid pay for medical alert monitoring? The answer is not as straightforward as one would think. Learning about the difference between Medicare and Medicaid can be confusing. Below we break down the different options you have to help pay for a medical alert device.

Medicare Parts A and B

Although Medicare Part B is responsible for medical equipment, neither Medicare Parts A and B will pay for medical alert devices.

To find someone to talk to about Medicare, select the dropdown menu and find your state. The site will list the questions you may have along with the contact information to get the answers you need.

Medicare Part C


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