What is IRMAA?

In Medicare, IRMAA stands for Income-Related Monthly Adjustment Amount. It's an additional surcharge on Medicare Part B and Part D premiums for beneficiaries whose income exceeds certain thresholds. This surcharge is calculated based on the beneficiary's Modified Adjusted Gross Income (MAGI) from two years prior.

• Why it exists:
  IRMAA helps ensure the financial stability of Medicare by requiring higher-income beneficiaries to contribute a greater portion of their Medicare costs.

• Who it applies to:
  IRMAA applies to Original Medicare and Medicare Advantage enrollees.

Key Features of Medicare Supplement Insurance Plans

Coverage:
Medigap policies offer standardized coverage, meaning policies with the same letter offer the same basic benefits, regardless of the insurance company.

Standardization:
There are different types of plans (A through N) with varying benefits.

Cost:
Medigap premiums vary based on the specific plan and the insurance company offering it.

Additional Benefits:
Some plans may cover additional benefits, such as emergency medical care outside the US, or may include benefits like vision, dental, or hearing coverage.

Eligibility:
You must be enrolled in Original Medicare Part A and Part B to be eligible for Medigap.

Open Enrollment:
You have a Medigap Open Enrollment period, which starts when you're 65 or older and enrolled in Medicare Part B. During this period, you can buy any Medigap policy without being denied coverage due to pre-existing conditions.

Examples of Living Benefits

Terminal Illness Rider:
If the policyholder is diagnosed with a terminal illness with a limited life expectancy, this rider allows them to access a portion of the death benefit while still alive to help cover medical expenses, debt, or other needs.

Chronic Illness Rider:
This rider allows the policyholder to access a portion of the death benefit if they are diagnosed with a chronic illness that significantly impairs their ability to perform activities of daily living.

Critical Illness Rider:
This rider pays out a portion of the death benefit if the policyholder is diagnosed with a critical illness, such as a stroke, heart attack, or cancer.

Accelerated Death Benefit:
Some policies offer an accelerated death benefit, which allows the policyholder to access a portion of the death benefit while alive, typically if diagnosed with a terminal or chronic illness.

Long-Term Care Rider:
This rider provides benefits to help cover the costs of long-term care, such as nursing home or assisted living.

Mortgage Protection

Mortgage protection insurance, also known as mortgage life insurance, is a type of life insurance designed to pay off the remaining balance on a mortgage if the policyholder dies. It's essentially a way to protect your loved ones from the burden of paying off the house if you are no longer able to.

Here's a more detailed explanation:

• How it works:
  Mortgage protection insurance works like a regular life insurance policy, but the beneficiary is the mortgage lender, not your family.

• Benefits:
  The main benefit is that it helps your family avoid the financial burden of a mortgage in the event of your death.

The ABCD's of Medicare

What are the parts of Medicare?

Part A – Hospital Insurance Helps cover:

• Inpatient care in hospitals

• Skilled nursing facility care

• Hospice care

• Home health care

Part B – Medical Insurance Helps cover:

• Services from doctors and other health care providers

• Outpatient care

• Home health care

• Durable medical equipment (like wheelchairs, walkers, hospital beds, and other equipment)

• Many preventive services (like screenings, shots or vaccines, and yearly “Wellness” visits)

Part C - Medicare Advantage

Medicare Advantage plans are a type of Medicare health plan offered by private companies that are approved by Medicare. It provides the same coverage as Original Medicare (Part A and Part B) and may include additional benefits like vision, hearing, and dental coverage, as well as prescription drug coverage (Part D).

Part D – Drug Coverage

Helps cover the cost of prescription drugs (including many recommended shots or vaccines). Plans that offer Medicare drug coverage (Part D) are run by private insurance companies that follow rules set by Medicare.