A HNW Retiree's Introduction to Medicare's Alphabet Soup

Episode 12 of Retirement Tax Matters provides a financial planner's 101-level orientation to Medicare, breaking down the alphabet soup of Parts A (Hospital), B (Medical), and D (Drug). We explain the general concepts and common paths retirees consider, such as using a Medicare Supplement to create more predictable fixed monthly costs versus the 20% coinsurance. From a financial planning perspective, we then detail the significant impact of IRMAA (Income-Related Monthly Adjustment Amounts), showing how a high income (ex. $325,000) can trigger premium surcharges for married couples. The key insight, however, is that while these fixed Medicare costs are manageable for most HNW Retirees, the real financial risk is the one Medicare does not cover: The cost of Extended Care (Long-Term Care). We call this "Part E" and provide third-party cost projections that show how this risk, which can exceed $15,000/month in the future, is the more critical component of your long-term financial plan. | Disclosures

Disclaimer: The information provided in this video is for general informational and educational purposes only and does not constitute specific Medicare or insurance advice. All examples of costs and premiums are illustrative. When you are ready to enroll in Medicare, we strongly recommend you speak with a qualified, independent, and AHIP-certified Medicare specialist who can provide specific recommendations based on your personal health situation, prescription drug needs, and up-to-date state-specific plan rules.