Medicare Need to Knows

 

I recently attended a face-to-face class and a webinar about Medicare. Below are ten key take-aways:

Medicare Description- Medicare is a federal government health insurance program primarily for Americans (U.S. citizens and legal permanent residents) age 65+ and certain younger individuals with a qualifying disability (end-stage renal disease and ALS).

 

Medicare Administration- Medicare is administered by the Centers for Medicare & Medicaid Services (CMS), which is an agency within the U.S. Department of Health and Human Services.

 

Medicare vs. Medicaid- Medicare is a national program that is primarily age-based. Medicaid is a federal/state partnership that varies by state and is need-based (i.e., income and asset limits).

 

Medicare Parts A and B- Both parts are collectively known as “Original Medicare.” Part A covers inpatient hospital care and Part B pays for doctors’ services and outpatient care.

 

Medicare Part C- Commonly known as Medicare Advantage, Part C an all-in-one private insurance alternative to government-run Original Medicare. Coverage is coordinated by a private insurance company approved by the federal government rather than by the government itself. Some Part C plans include dental coverage. Open enrollment period every year is a time to shop around.

 

Medicare Coverage Split- According to KFF, 55% of Medicare beneficiaries are enrolled in Part C and the remaining 45% retain Original Medicare. Most people in the latter group buy Medicare supplement insurance (Medigap) to cover Medicare deductibles and coinsurance.

 

Medicare Part D- This is insurance program that helps cover the cost of outpatient prescription drugs. It can be added to Original Medicare or Medigap insurance or it can be part of a Medicare Advantage plan that bundles prescription drug coverage with medical benefits.

 

Medicare and Long-Term Care- Medicare does not cover long-term "custodial" care (help with everyday activities like bathing or eating). However, it does cover up to 100 days of skilled nursing facility care or rehabilitation following a qualifying hospital stay of at least three days.

 

Medicare Losses- Medicare experiences billions of dollars in annual losses due to fraud and abuse. Senior Medicare Patrol (SMP), a federal program, helps Medicare beneficiaries and caregivers prevent, detect, and report Medicare fraud, errors, and abuse. SMP operates in every U.S. state.

 

Medicare Appeals- Beneficiaries can appeal a decision not to cover a specific medical procedure. A common culprit is that the billing code was entered incorrectly. About 70% of appeals are successful. Of course, documentation is needed to present a strong case.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

Barbservations From a Death Cafe

As I have noted previously, I volunteer as a room host for the same non-profit educational foundation that I am a paid instructor for. As a result, I get to learn a lot of interesting things for free. I recently attended a Death Café class as a volunteer (and observer). Below are my key take-aways:

Death Café Definition- A Death Café is a welcoming, group-directed conversation where people gather to discuss death, dying, and end-of-life experiences in a safe, respectful environment. It is NOT a grief support group or counseling session but, rather, an opportunity to share thoughts, ask questions, and engage in meaningful dialogue. A local hospice agency facilitated the group.

 

Death Café Movement- This program was definitely not unique to the Florida city where I live. The Death Café movement began in Switzerland in 2004 and later expanded internationally, encouraging open conversations about mortality and helping people make the most of their lives. People enjoy free refreshments as they talk about death and dying in a relaxed environment.

 

Range of Emotions- After an initial full group conversation, the16 attendees were divided into two smaller groups of eight. Over the course of 90 minutes, I observed both hearty laughter and heavy sobbing (men and women alike!) as people shared stories about themselves, their loved ones, and their greatest joys and fears. There were no lectures but, instead, totally authentic sharing among people who were strangers. The biggest financial fear that I heard expressed was running out of money during their remaining lifetime, which echoes findings from many older adult surveys.

 

Thought-Provoking Questions- The initial full group conversation started out with three questions: How old do you want to be when you die? How far are you from that age? and What are you planning to do in between? (i.e., what is on your “bucket list?”).  I was amazed that a handful of  people said things like “ I don’t have a bucket list,” “I’ve done everything I want to do,” and I’m OK if it (death) happens tonight.” I erroneously assumed that everyone has some unfinished business on a “to do” list but apparently not so. Instead, I noticed a sense of calm about facing the end of life.

 

More Pointed Questions- In the small groups, people were given large index cards with questions like “Who is your support system?” and “When you die, do you want to be alone or with others?” and “You have one week to live: what concerns do you have?” and “Who was the first person who you saw die and how did you feel?” and “How much end-of life medical treatment do you want?

 

Wide Range of Topics- As a volunteer, I was seated close enough to the two groups to follow their conversations. Among the topics that came up were probating a will, dying without a will, finding an attorney, regrets about not being able to go back to talk with ancestors, several “I wish I’s…”, estranged relationships, fear of an extended need for long-term care, suicide and assisted suicide, and the difficulty of holding end-of-life conversations with loved ones.

 

To summarize, the experience of watching an in-person Death Café in action was enlightening and provided lots of insights to write this post and to prepare future personal finance classes. There are also virtual Death Cafes that are held on Zoom and hosted by various facilitators worldwide.

 

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

 

Barbservations From a Tour of Western National Parks

I recently took an eight-day bus tour of national parks out west including the “Mighty 5” in Utah: Arches, Zion, Canyonlands, Capitol Reef, and Bryce Canyon. While Arches National Park was on my bucket list to complete, the entire trip was amazing with all promised services and activities delivered and then some. Below are ten Barbservations:

 

Travel in Later Life- There were several people on the tour in their late 80s who were not able to partake fully in scheduled hikes at the parks. There were definitely past the “go-go” (65-74) and “slow-go” (75-84) retirement years. One older gentleman lost his balance and took a nasty fall, requiring a trip to the ER. I couldn’t help but think that he should have taken the trip a decade earlier. If you are an older traveler with balance issues, bring a walking stick.

 

Career Change Success Story- Our excellent tour guide worked for the National Park Service for 27 years before he was DOGE-ed in 2025. His NPS knowledge and experience added so much to our understanding of the parks and the state of Utah, where he lived. The federal government’s loss (now they want him back!) was our gain. His story is a reminder that people can often transfer well-honed job skills to a new workplace or self-employment (like I did).

 

Amazing Scenery- Rock formations throughout the five national parks and the national monuments (federally protected areas that are generally smaller than national parks) that we visited were breathtaking. An extra special treat was synchronized music with our travel itinerary such as Rocky Mountain High in the Rockies, movie soundtracks when we drove up mountains, and Viva Las Vegas when we pulled into Las Vegas.

 

Benefits of a Travel Agent- I was part of a small group that used a Cruise Planners travel agent and two-thirds of the bus came with a travel agent from AAA. Our travel agent negotiated an excellent value package for us including airfare and airport transfers. Travel agents frequently have access to discounted rates and special promotions.

 

New Technology Tools- During this trip, I used WhatsApp for the first time. WhatsApp is a free instant messaging app owned by Meta. The tour guide invited us to join a messaging group where he shared messages, schedules, and graphic images. He also used another new (to me) tool, PhotoCircle, to share photos taken during the tour.

 

Neutral Topics- We were warned in advance not to discuss “touchy” topics like religion, politics, and current events and, best I could tell, everyone complied, even with the White House cage fight and Washington, DC reflection pool stories being reported at that time. It was refreshing to simply “be present” in the moment, see less national news, and focus on what we were seeing and doing and neutral topics like the weather and where we live.

 

Payment Methods- Several locations did not take cash including a downtown Denver hotel restaurant and several national park concessions. Not sure why. I asked ChatGPT and reasons included reducing the risk of robbery, and employee theft, lower cash-handling costs, and easier accounting. Conversely, some venues charged a 3% fee to use a credit card, presumably to offset the merchant’s fee that they are charged.

 

National Park Status- I did not see any evidence of poor service following the 2025 federal government staff reductions. Park rangers were readily available as guides and to answer questions and gift shops and bathrooms were clean. I did notice long lines for cars to enter the national parks but we breezed in early in a special lane for busses.

 

National Park Stamps- Stamps were available at each of the national parks and monuments and people flocked to stamp their national park passports with a free ink cancellation stamp showing the park’s name and the date of their visit. I learned that there are more than 430 units managed by the National Park Service, including national parks, national monuments, national historic sites, national seashores, national battlefields, and other protected areas.

 

Wildfire Danger- While we were driving throughout Utah, our tour guide pointed out some newly forming fires way off in the distance. Several days after we came home, huge wildfires in southern Utah were on the national news. I sincerely hope that our tour guide, his family and his property are safe as well as others who we met along the way.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

 

Take-Aways and Strategies for Late Retirement Savers

 

I recently attended a webinar about people who get a late start saving for retirement. Below are some key takeaways and catch-up strategies that were shared:

Late Saver Definition- Someone who feels behind on reaching financial independence for retirement, compared to “normal” savings metrics. Late savings is not based on age or a number but on how people feel about their financial progress.

 

Savers’ Starting Age- The average age of starting to save for retirement is age 32 and 58 to 60% of Americans say they are behind on retirement savings. Americans age 45 to 54 have an average savings balance of $115,000. The biggest lever that late savers have is their savings rate.

 

Waking Up- There are a number of wake up calls that cause people to start planning for retirement including workplace seminars, becoming a parent, health events, divorce, layoffs, feeling stuck, and seeing others start to save significant sums.

 

Catch-Up Time- People can be very hard themselves after they “wake up” to their lack of retirement savings, often lamenting the fact that they hadn’t started saving earlier. In reality, catching up is not impossible. It often takes about 10 to 15 years to catch up to early savers once a late starter wakes up.

 

Reasons for a Late Start- Commonly cited obstacles to saving early (20s) include: raising a family and child care expenses, student loan payments, lack of financial education, a low-income job, a belief that staying in debt is normal, and unhealthy money beliefs (e.g., “investing is a scam”).

 

Disadvantages of Starting Late- Less time for compound interest growth, some people take on too much investment risk due to a shorter time horizon, and some people experience career burnout but feel they must work longer to catch up on savings.

 

Late Start “Superpowers”- Things that can help late savers accumulate more savings include catch-up contributions on retirement savings accounts and HSAs, peak earning years in your 40s through 60s, being beyond the financial challenges of early adulthood, and decisions such as downsizing.

 

Long-Time Horizon- Your investment time horizon is the rest of your life…not your retirement date.  This means that, if you are 45 years old today and live to age 90, you have 45 years for your money to grow via compound interest.  Long time frames may also reduce market volatility.

There is a popular saying about taking responsibility for one’s actions: “If it is to be, it is up to me.”  Workers are increasingly “on their own” to prepare for retirement as government and employer supports (e.g., defined benefit pensions and retiree health insurance) have eroded  over time. 

Personal responsibility includes making the decision to save for retirement, as well as deciding how much to save, and determining a personal investment asset allocation policy (i.e., the percentage of invested funds placed in stocks, bonds, and cash equivalent assets).

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

Miscellaneous Take-Aways From Free-Meal Seminars

 

I periodically attend free-meal seminars to see what questions older adults have about their finances to inform future blog posts and classes. Free food is also a side benefit. Unfortunately, most presentations include little, if any, time for participant Q&A. Rather, their emphasis is promoting the program sponsor and sharing “teaser tidbits,” instead of complete explanations, of financial topics.

 

I also noted frequent use of negative statistics about the future of Medicare and Social Security (a 21% to 25% reduction in benefits when the trust fund is depleted). Also, the phrase “come sit down with us” was used repeatedly. Nevertheless, useful information is sometimes shared. Below are some take-aways from several recent “free meal” presentations that I attended:

Probate Process- Ways to avoid probate or reduce the amount of assets that are subject to it were discussed. They include beneficiary designations, payable on death (PoD) and transfer on death (ToD) designations, joint tenancy with right of survivorship, and trusts.

 

Account Minimums- Seminar presenters had minimum investable asset requirements for new clients of $250,000 and $500,000. They stated their minimum requirements up front so attendees could judge if they were a good fit. Remember, some folks were just there for the free meal and there was no income and asset screening in advance.

 

Tax Rates- Presenters noted that “taxes are on sale” with some of the lowest tax rates in recent U.S. history made permanent with the OBBBA law. In 1944, the highest tax rate was 94%. Attendees were urged to monitor income to “fill up their tax bracket” but not move up to the next highest one.

 

Sequence of Returns Risk- This was a very important topic to cover. Sequence of returns risk is the danger that poor investment returns occur early in retirement while withdrawals are being made. Early losses can permanently reduce a portfolio's value, making it harder to recover and increasing the chance that retirement savings will be depleted sooner.

 

IRMAA- IRMAA (Income-Related Monthly Adjustment Amount) is an extra surcharge added to Medicare Part B and Part D premiums for higher-income beneficiaries. The surcharge is based on income reported on tax returns, typically from two years earlier. IRMAA is basically a tax and is only going to go up in future years as health care expenses rise.

 

Beneficiary Designations- Presenters often rightly urged attendees to make sure that their beneficiary designations were up to date on life insurance policies and retirement savings plans and to name contingent beneficiaries as a “Plan B.”

 

Long-Term Care (LTC)- One presenter noted that traditional LTC insurance policies have become “dinosaurs.” Instead, most LTC insurance policies sold today are hybrids between either life insurance or an annuity and LTC insurance. Seven out of 10 older adults will need some type of LTC service at some point during the remainder of their life.

 

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.