On Pace

Medicare Open Enrollment

Medicare is the same, but have your coverage needs changed?

Written by John Ferrari

In this ever-changing world, it’s nice that some traditions remain the same year after year—like Medicare’s annual Open Enrollment Period. Each year, the Open Enrollment Period runs from October 15 to December 7. During this period, you can join, switch or drop a Medicare health plan or Medicare Advantage plan. You can change from Original Medicare (Parts A and B) to a Medicare Advantage plan (Part C), or switch from Medicare Advantage back to Original Medicare. You can also join, switch or drop Medicare drug coverage plans (Part D). Any changes you make take effect January 1, 2023.

There is a separate enrollment period just for Medicare Advantage, from January 1 through March 31. During this period, you can switch between Advantage plans or end your Advantage coverage and return to Original Medicare. However, during this period you cannot switch from Original Medicare to a Medicare Advantage plan. Additionally, some life changes trigger Special Enrollment Periods, for example, when you lose your current coverage or become eligible for Medi-Cal, move to a new coverage area, or move into or out of a skilled nursing facility, long-term care hospital or similar facility.

If you are already enrolled in Medicare, you should receive the 2023 Medicare and You handbook in late September or early October. It’s also available online at medicare. gov/medicare-and-you. Additionally, in late September you should receive a separate notice detailing how your plans will change in the upcoming year.

So should you gather up your colored pens and highlighters to review your coverage and the changes for the upcoming year? Not necessarily, says licensed health insurance agent Vince Kelly. “A lot can change in five years, but year to year? Not so much. You should go over your Medicare options every few years, or when your medical or financial circumstances change.”

Open enrollment is a good time to consider switching from a Medicare supplement plan, or Medigap, to an HMO, especially as you age, Kelly says, because Medigap premiums increase each year. “At age 65,” he explains, “a really good supplement plan may cost $130 per month, but by the time you reach 75, that premium has risen to $250 each month.”

One way to help lower Medicare costs is to consider insurance companies that offer a Medicare Part B premium reduction. “These are incentives companies offer to entice people to sign up with them,” Kelly says. “A Part B reduction gives consumers, say, a $125 monthly credit toward the $170 monthly cost of Part B. That reduction may be offset by higher deductibles or fees on some items, but they’re often a good deal if the higher deductibles or fees apply only to medications you don’t need, or procedures you won’t have.”

And there are a few things you should check every year, like your Medicare insurance card. “You should ensure that your insurance ID card has your name—with no misspellings—and lists both your primary care physician and correct medical group name, for example, Torrance Memorial IPA,” Kelly says. “Primary care physicians can move or retire. If that happens, listing your medical group on your insurance card will make it easier for you to continue receiving care from the same group.” •

For more information, go to medicare.gov; call the Torrance Memorial IPA Resource Center at 310-517-7239; call licensed health insurance agent Vince Kelly at 310-625-1837 or call Health Insurance Counseling and Advocacy (HICAP) expert Doris Herzog 310-517-4666; or attend Torrance Memorial IPA’s complimentary Medicare 101 lectures (TorranceMemorialIPA.org/medicare101).

FAMILY FOCUS

It's never too early to start the college planning process with your high schooler. Since there is much to consider, planning ahead can save you time, money and help keep the process more manageable.

College Planning

6 questions every family should ask

Written by Jill Biggins Gerbracht

Although the college application process begins in earnest during a student’s senior year, there are things to consider along the way to ensure a successful outcome. College and career planning can be an exciting time for high school students and their parents—but it can also be intimidating, time-consuming and costly.

Pulse magazine shares six questions college planning advisors recommend families explore.

1. Do You Have a Big-Picture Plan?

Determine what your child is interested in to help them narrow down their options. Do they want an urban downtown campus, suburban or rural environment? What aspects of student life are most important to them? Do they have an area of interest/major?

Research has found those without a plan (who maybe pick a school at the best price) will spend up to 3.5 times more on college. Those who start with a big-picture approach will be able to visualize many key areas and can save a lot of time and money just on the planning process alone.

2. Are You Focused on the Right Goal?

Students often feel pressured to focus on getting into their dream school. Families can avoid pitfalls and unnecessary costs by ensuring their student’s first goal is determining their field of study and future career, and then using that goal to drive the college selection process.

Visit schools that will give you a sense of the “type” of school your child is interested in. Then compare the different schools and discuss the pros and cons and key things your teen likes or dislikes about each school to help finalize your decision. Focusing on the wrong goal can lead to difficulty in finding a job after college or taking up to six years to graduate. Resources such as onetonline.org and payscale.com can be helpful to explore.

3. Is College the Right Path to Success?

Many jobs today do not require a college degree. In fact, some of the largest employers are tossing out their requirements for college degrees and are focusing on upskilling certification programs that build the latest skills. Get creative in your big-picture planning at sites such as profitableventure.com.

4. How Much Debt Is Too Much?

There are several ways to get a quality education without breaking the bank, including community college. Schools are required to have a real-price calculator on their websites, which will give you a sense of what you might have to pay to attend an institution. A big-picture, creative approach helps families in the planning process evaluate “what if ” scenarios before incurring debt. The site studentaid.gov/loan-simulator can help you avoid this trap and do your own forecasting.

5. How Can We Cut Costs?

• Consider out-of-state schools at in-state prices

• Apply for scholarships, which are plentily available for just about any interest or specialization

• Consider opportunities for free college programs from employers

• Explore new alternatives to the traditional college path

• Attend community college for the first two years

6. What’s Negotiable?

While the cost of a college can be a deciding factor, a lot of other expenses go into the final amount you will actually pay, and it’s rarely the price listed.

The offer price listed in your child’s acceptance letter is just a start. You can compare and negotiate tuition, room and board, fees, terms and more. It’s easy to compare offers to other students from the same school with similar test scores and financial means using resources such as tuitionfit. org for increased bargaining power. •