Your Medicare Decisions Have Major Impacts on Your Spouse | Protect Yourself AND Your Spouse

[@tinalippincott9823]

A video that should be watched by all couples before any Medicare action or consideration is taken. So many issues involved in these decisions and some choices cannot be undone. Excellent job, as always.

[@Theretirementnerds]

Thank you so much Tina! We agree! Couples should communicate on these decisions.

[@michaelwilhelm2148]

Terrific video. I and my wife are at the crossroads of making these decisions during the next two years. I will refer to this information numerous times until 2025 arrives, when I can go solely on Medicare Part A & Part B, and add a Medigap and Part D plan. Thank you for the helpful, valuable content. Please update on a biennial basis, or when changes are federally legislated. You can't stop politicians from tinkering and pulling out a sledge hammer when they want to make YOU pay more for your health insurance!

[@Theretirementnerds]

Thank you for watching! We will to continue to update on any changes. Big changes are already in the works on Part D coverage that will start in 2024 and be in effect for 2025 when you jump on.

[@davidfolts5893]

Thank you for another outstanding video on Medicare! In my written instructions to my wife in the event of my passing, I have emphasized the importance of never changing her Medigap Plan G plan, no matter what. Cheers.

[@Theretirementnerds]

Something that not many people consider. Way to be David! Always looking out for your spouse :)

[@davidfolts5893]

@@Theretirementnerds Thanks.😀

[@robjohn6943]

Would love to see a version of this discussion for military retirees retiring from federal service at 65 y/o and a younger wife.

[@hainguyen7971]

Hi Jeff. Great video and informations. I have a question for you. I am still working past 65 ( current now is 68) and not enroll on Medicare part A and delay Medicare part B because I have had an HSA until I am retire at 70 next year without penalty. My wife is covered by my health insurance at work with 2000 employees . When I retire at 70 by the end of 2025 and my wife is 63 . Hơ could she have an health insurance coverage at that time? Is she still qualified to be continuing coverage at my company or buy for her at marketplace health insurance coverage or Cobra’s ( very expensive) Knowing that she is no longer working since 2009 due to an auto accident ( not her fault) And she not able to return to work since then! Thank you Joseph

[@Theretirementnerds]

She will most likely be going on an ACA plan between when you lose company benefits and she becomes Medicare eligible. Your employer may have something for her, but most likely the ACA individual marketplace is where she'll be covered for that time.

[@lynettecolvin8085]

Thanks for all the great information!

[@Theretirementnerds]

Thank you for watching Lynette!

[@walterbazarewski2496]

This was great information. Thank you

[@Theretirementnerds]

So glad it was helpful! Thank you for watching!

[@eduardooramaeddie4006]

Thank you for the important information I'm divorced

[@miladumayas3824]

Am 68, and on Advantage medicare plan, my house now in NY is on the market, i bought a house in Florida at the end of last year wanting to be there as am retired, can I switch my existing Medicare advantage plan now since it is open enrollment , to Medicare supplement? Or shall I wait till my primary NY resident is sold and permanently be in Florida. Thank you for your video. I just wish someone like you enlightened me when I started having my original Medicare . Everyone I asked , said advantage plan was the best. Thank you kindly. Mila

[@Theretirementnerds]

Hi Mila, if you have moved and have a new address as your permanent residence, you can switch. Supplement plans are notoriously expensive in Florida and New York (the two states you've lived in). High Deductible Plan G is more prevalent and, depending on where you live, certain Advantage plans are solid. If I were you, I would have an agent who knows the area compare supplement plan rates for you.

[@Stilllookingood58]

So let me get this straight, if I get a medicare plan B (supplement or advantage) and I make over $97K I pay more. But if I am on SS and under 65 I can't make more than a certain amount anyway and that would keep me under IRMA, right? But if I am over 65, getting SS and making say $100K (since at that point I can earn any amount and keep my SS) I would pay more for medicare?

[@Theretirementnerds]

Hi! If you make over the IRMAA amounts and you are taking Medicare Part B, yes, your Part B premium will be higher. Remember that they look at your income from 2 years back to determine your income to use for the IRMAA number. Taking SS early - you can make more money while taking SS and be above the IRMAA number, your SS is just taxed at a higher rate the more income you have. This video goes over the SS tax situation: kzbin.info/www/bejne/Y3_PhJ-QmtSFpJY The provisional income number in that video will determine how much your SS is taxed. The second AGI number that comes in later in that video on the right chart is the one that will determine your Medicare Part B IRMAA.

[@dilipsoni8630]

Can I switch form Medical advantage plan to Supplemental plan after one year.

[@Theretirementnerds]

The answer is... "it depends." This video should help: kzbin.info/www/bejne/mpvYeJh_bZdsg5Y

[@aroonsuansilppongse9759]

Good presentation

[@Theretirementnerds]

Thank you so much!!

[@jtixtlan]

My husband’s employer currently has 22 full time employees. The owner is obsessively cheap. She has not been replacing employees who leave. My husband will turn 65 in August, and has been employed there for 40 years. We are concerned. He will be the first employee to reach 65, and we think the employer is whittling down to 20 full time employees to kick our family off the plan by requiring him to go on Medicare in August. I am retiring this year at 63 and my husband’s company plan has been covering both me and our 23 year-old son. I am only going to get $1500 per month in social security, so I can’t afford health insurance and still retire. He will begin talking with her soon, and plans to ask her directly if he can stay on the plan if the company drops to 20 employees before his birthday. Is this allowed? What if he stays on the company plan on his 65th birthday and then the amount of employees drops to 20 in subsequent months? Are we always one month away from a disaster?

[@Theretirementnerds]

Thank you for watching and reaching out. 20 employees is okay, 19 gets problematic, and it'll depend on the insurance company the employer uses. If it drops below 20, the insurance company can choose to enforce this and not pay, or they could still step up and pay. We see both, just depends on the insurance company his employer uses.

[@jtixtlan]

@@Theretirementnerds I don't understand why Medicare makes the rules but they don't make it possible to know the rules. So, I won't find out until I'm retired and put in a claim for a health even to see if the insurance company of my husband's employer pay it based on whether they want to? This is far more f-ed up than I had imagined. Medicare is a federal program I have paid for all my life. The law is really that the employer's insurance company gets to decide at the time when a payment is due?

[@loveidaho1869]

I am 65 in March. I will go on med A. I have a 14 yr old. Can I still have HSA? Is there medi alcoverage for a young child?

[@Theretirementnerds]

Can I ask why you are going on Part A? Sounds like you are covered by a company plan. If your company has 20 or more employees, you do not need to take Medicare at 65. If you take Part A only, you can no longer contribute to your HSA. You can have your HSA, but neither you nor your employer may contribute more to your HSA.

[@teams3345]

My partner and I worked for the same company for 30 plus years. He is on a supplement plan G. I am under retired company sponsored for the next three years. I will go under supplement G at this time. IRMA is a concern as our income is high. We constantly try to keep it down. We do have LTC and probably started it to early. Thanks for your videos.

[@Theretirementnerds]

Thank you for watching. Sincerely appreciate it. IRMAA is something that can be a nuisance. If your income is high, no real way around it.

[@teams3345]

@@Theretirementnerds We are retired so I will just dial down my interest payments from my 401K each year as to keep within the lower limits. I am aware of the two year look back period. Thanks as always. 🤵‍♂️

[@teams3345]

@@Theretirementnerds I am going to start social security in a few months. I am already retired. Can I still contribute to my HSA until the month I am 65 and start Medicare? I have a High Dedictible Plan from previous employer.

[@Theretirementnerds]

@@teams3345 if you are currently on a Qualified High Deductible Health Plan, then yes, you can. Make your last contribution the month before your 65th birthday.

[@teams3345]

@@Theretirementnerds thanks so much. What a quick response. I thought that was what I heard. Take some of the weekend off.

[@jeffsaraiva7099]

Is it true that if you have an HSA which yourself and your company have been making contributions to, all contributions to that HSA must stop 6 months prior to signing up for Medicare? If that is true, then what happens if one is laid off, and health coverage, including employer contribution to HSA, stops. Does one still have to wait 6 months to sign up for Medicare without any penalties???

[@Theretirementnerds]

Great question Jeff! We have an entire video that goes over exactly that :) kzbin.info/www/bejne/rnzYiXiln9uXo6M

[@jeffsaraiva7099]

@@Theretirementnerds Thank you. That was an excellent video, more in depth than any others I have watched. However, it did not really address a layoff situation specifically. So let me ask a specific question if I may: I was 65 on May 28 of this year. I was employed full time and had a credible health care plan with an HSA where both myself and the employer contributed to. Then they laid me off which caused my last contribution to my HSA to be September 30th, 2022. Now I am unemployed and without insurance. Can I sign up for Medicare now without an HSA penalty?

[@Theretirementnerds]

Hi Jeff, sorry to hear about the layoff. The HSA penalty comes if you are audited and they notice you contributed past when you should have stopped. It'll be a tax on those dollars. You can pull those dollars out (document the process) for the months past. Have you already signed up for Medicare? Send me an email to [e-mail] if you'd like to go into more specifics.

[@normafuentes5620]

Same problem here my husband was layoff this month and he will be turn 65 this month what he need to do with his HSA if he sign up in Medicare? Is he needed to report that 6 months contributions? 🤷🏻‍♀️ this health system is really confuse 😢 why if we are first world we have a third world health care system?

[@prenticehammond2003]

WHAT is the purpose of the HSA vs Medicare issue? As I understand it, I have to stop my HSA 6 months before I start Medicare for myself. Why does it have to be this way? A reason please, not just because that is what the law says.

[@Theretirementnerds]

6 months back is only after 65. It is 6 months back or your 65th birthday, whichever is closest. We have a video on that here: kzbin.info/www/bejne/rnzYiXiln9uXo6M The reason is when you sign up for Part A, they put the Start Date of Part A 6 months back or your 65th birthday, whichever is closest. And you can't contribute to an HSA while on any part of Medicare.

[@prenticehammond2003]

@90DaysFromRetirement But why can't they "start" Medicare when my traditional insurance coverage ends? Why do they have to go back 6 months extending into my company insurance coverage? PS I did write this before I viewed your video. Maybe that explains what I am missing. In April 2022 I was 65 the next month I turned 66. I wanted Medicare to start in April (company insurance ended April 1). Going back 6 months brings us to October 1 (but of course, some government method of counting dates could put that back to September 1). Given I may have an HSA screw up, who do I reach out to find out. My spouse (younger than me) was eligible for HSA up to the time I switched.

[@randolphh8005]

Both spouses can contribute the additional $1000 catch up, but the spouse needs to put the extra $1000 in a separate HSA account if covered under family plan. So,that gets you up to,$9300 as a couple per year. We actually both had HSA accounts and the spouse with the HDHP flipped back and forth. So we both have substantial accounts. The good news is you can use either account in the distribution phase, as long as you both participated at some point. Oh yes and triple tax advantage, better than a Roth! I’m actually still eligible through an ACA HDHP and still contributing, but wife now on Medicare. But, HDHP not so,good if you have ongoing health issues.

[@Theretirementnerds]

All excellent points!

[@Jeff-qe6gx]

Regarding the HSAs and Spouses section of the video: I have HDHP insurance for myself and my spouse (family plan) and an HSA (family) account in my own name, and we are both over 55 and both are not on Medicare. So I have two questions: 1) can my spouse open her own HSA account and be able to fund it with her own $1000 catchup contribution, while I continue to fund my account up to the tax year family maximum amount plus my own $1000 catchup contribution? 2) So in essence because we are BOTH over 55 can we contribute up to the family maximum PLUS $2000? For 2022 this would be $7300 +$1000+$1000 = $9300 ($8300 in my HSA account and $1000 in my spouse's account)

[@Theretirementnerds]

Hi Jeff, Your thought process is on point. HSA catch up contributions only work if you have your own HSA. So in your example, as you mentioned, you can fund to the family amount ($7300) for the year, and then because you are over 55, add another $1000 in catch up. Then your spouse can open her own HSA and fund it with her own catch up since she is over 55, too. The total pre-tax amount is $9,300 between both HSA’s for your taxable household. Great question!

[@Jeff-qe6gx]

@@Theretirementnerds Thank you for your reply. As a followup question: are we free to divide up the $7300 family maximum contribution in any proportion between the two accounts? For example, say I contribute $5000 into my HSA (along with my own $1000 catch up) and my spouse contributes $2300 into her HSA (along with her own $1000 catch up)? The total amount contributed remains at $9300, just the proportion contributed to each HSA has changed.

[@Theretirementnerds]

How much you can contribute to your HSA depends on your coverage. So in this case both you and your wife have “couple coverage” or Family coverage as the IRS defines it. So either spouse could fund any portion of the family max of $7300 into their HSA. $7300 in one $0 in the other, $3,650 in one, $3,650 in the other, etc. Any combination is allowed as long as between both of you, you don’t exceed the Family max of $7,300 for the tax year. Does that help?

[@Jeff-qe6gx]

@@Theretirementnerds Yes it does, thank you very much! One last followup question related to above: What happens if a family HDHP is held for the ENTIRE calendar year during which one spouse turns 65 and applies for Medicare during that year? I understand that the spouse turning 65 needs to stop their HSA contributions at the correct time (to avoid tax complications/penalties), but my question is: can the OTHER spouse (who is over 55 and NOT on Medicare) still contribute to their own HSA account EVERY month such that between both of us, we don't exceed the family maximum of $7300?

[@terrymeland9989]

Let's say the husband will go on Medicare coverage on June 2023 when his former work-related COBRA health insurance coverage expires (COBRA covers both husband and wife). His wife will turns 65 in Sept 2023 and then she will go on Medicare coverage. So she has a 2+ plus month health care insurance coverage gap between when COBRA ends and when her Medicare begins. Is the most practical / simplest way to fill the wife's 2+ month health insurance gap is to apply for and use ACA Marketplace medical insurance for the two months? I assume that if instead she tried other private group insurance, there may be a much more substantial required underwriting and so less simple?

[@Theretirementnerds]

Yes, an individual marketplace plan is likely the best option. Unless the younger spouse wanted to start working somewhere that offers benefits for those few months.

[@terrymeland9989]

@@Theretirementnerds Thanks. The likelihood of the few months working option is 0%.😀

[@Theretirementnerds]

@@terrymeland9989 haha, then yes, an individual marketplace plan 🤣