News and Articles

Saving for College: Using 529 Plans Effectively in 2025

July 31, 2025

The cost of higher education continues to rise, making it important for families to explore savings options that can help them manage future expenses. One widely used approach is the 529 plan, a tax-advantaged savings account designed specifically for education costs. Using 529 plans effectively can help you plan for short- and long-term education and investment goals.

Understanding 529 Plans

A 529 plan is a state-sponsored education savings program that offers tax advantages when funds are used for qualified education expenses. There are two main types of 529 plans: education savings plans and prepaid tuition plans.

• Education Savings Plans: These allow you to invest in a variety of financial assets, such as mutual funds, with the goal of growing savings over time. The funds can be used for tuition, fees, books, and other education-related expenses at eligible institutions.
• Prepaid Tuition Plans: These plans let you purchase future tuition at current prices, typically limited to in-state public institutions. Some states offer conversion options for private or out-of-state colleges.

Each state administers its own 529 plan, and while residency may affect eligibility for state tax benefits, funds can typically be used at institutions nationwide.

Tax Benefits and Contribution Considerations

One of the main benefits of 529 plans is tax-free growth when funds are used for qualified education expenses. Contributions are made with after-tax dollars, but the earnings grow tax-free at the federal level, and in many cases, at the state level as well.

Some states offer tax deductions or credits for contributions, which can provide additional savings opportunities. However, contribution limits vary by plan and state, so it is helpful to review state-specific guidelines when determining a savings strategy.

Using a 529 Plan for K-12 and Higher Education Expenses

529 plans were originally designed for college savings, but have expanded in recent years to cover other education expenses. You can now use funds for K-12 tuition at private and religious schools, with an annual limit of $10,000 per student. Additionally, up to $10,000 can be used to repay student loans for the beneficiary and their siblings.

When planning for college, you should consider eligible expenses, including tuition, room and board, mandatory fees, books, and computers. It is important to review each school’s cost structure to determine how savings will be applied.

Related: Back-to-School Financial Planning: Managing Education Costs

Investment Strategies for 2025

529 plans offer a range of investment options, often including age-based portfolios that adjust risk levels as the beneficiary nears college age. Plans for younger children typically have more exposure to equities for potential growth, while plans for older students transition to more conservative investments.

If you are starting to save in 2025, factors such as inflation, market conditions, and interest rates may influence investment choices. Some people may prefer diversified options, while others may look for stability in conservative portfolios.

Regularly reviewing investment performance and adjusting contributions can help align savings goals with expected expenses. Many plans allow for changes to investment allocations twice per year, which can be adjusted based on financial circumstances.

What Happens if the Beneficiary Doesn’t Use the Funds?

If the original beneficiary does not use the funds, you have several options. One approach is to change the beneficiary to another eligible family member, such as a sibling, cousin, or even a parent returning to school. Funds can also be used for graduate school or rolled over into a 529 ABLE account for individuals with disabilities.

As of 2024, account holders can roll over unused 529 funds into a Roth IRA under certain conditions. This new option provides additional flexibility, allowing you to repurpose savings without penalties, subject to contribution limits and eligibility requirements.

If funds are withdrawn for non-qualified expenses, earnings are subject to income tax and a 10% penalty. Reviewing options before withdrawing can help minimize tax implications.

Comparing State Plans and Choosing the Right One

Each state offers its own 529 plan, and you do not have to choose the one from your state of residence. Some states provide additional tax incentives or lower fees, which may make certain plans more attractive.

When evaluating options, key factors include:

• Investment choices and performance history
• Management fees and administrative costs
• State tax benefits and contribution limits
• Flexibility in fund usage

Researching different plans and comparing their features can help you select an option that aligns with your financial goals.

Incorporating 529 Plans into a Broader Education Savings Strategy

While 529 plans provide valuable tax benefits, they are one part of a broader education savings strategy. You could also consider custodial accounts, Coverdell Education Savings Accounts, or traditional investment accounts, depending on your financial situation and goals.

Some families use a combination of savings vehicles to maintain flexibility, especially if they anticipate funding expenses beyond tuition and fees. Discussing options with a financial professional may provide additional insight into balancing savings and investment approaches.

Planning for Withdrawals and Managing Expenses

As college approaches, you should develop a withdrawal strategy to avoid unexpected tax consequences. Qualified withdrawals should be matched with eligible expenses in the same tax year to maintain tax-free status.

Some schools allow direct payment from 529 accounts, while others require reimbursement to the account holder. Keeping detailed records of expenses can help ensure compliance with tax rules.

Using 529 Plans Effectively: The Bottom Line

529 plans remain a useful tool for education savings in 2025, offering tax advantages and investment flexibility. If you are looking to save for college or other educational expenses, it’s important to understand your options, compare plans, and develop a strategy that aligns with your financial goals. Regularly reviewing your contributions and investment performance can help you adapt to changing circumstances and education costs.

Illuminated Advisors is the original creator of the content shared herein. I have been granted a license in perpetuity to publish this article on my website’s blog and share its contents on social media platforms. I have no right to distribute the articles, or any other content provided to me, or my Firm, by Illuminated Advisors in a printed or otherwise non-digital format. I am not permitted to use the content provided to me or my firm by Illuminated Advisors in videos, audio publications, or in books of any kind.

Back-to-School Financial Planning: Managing Education Costs

July 31, 2025

Tips and Strategies for Managing Education Costs and Back-to-School Expenses

Back-to-school season often brings excitement, new opportunities, and financial decisions. Whether preparing for elementary school, high school, or college, planning for education-related expenses can help manage those costs more effectively. Understanding common expenses, budgeting strategies, and available financial resources can help you navigate this time of year more confidently.

Identifying Key Back-to-School Expenses

Education-related costs go beyond tuition and school supplies. Recognizing these expenses in advance may help with budgeting and financial planning. Some common costs include:

• School Supplies and Books: Notebooks, pens, backpacks, and calculators are typical expenses for students of all ages. College students may face additional costs for textbooks, which can be significant.
• Technology and Equipment: Many schools require laptops, tablets, or other digital devices for learning. Software subscriptions and internet access may also add to costs.
• Extracurricular Activities: Sports, music programs, and clubs often come with participation fees, equipment costs, and travel expenses.
• Transportation: Whether commuting to school by bus, car, or public transportation, travel costs can accumulate over time.
• Meals and Snacks: School meal plans, packed lunches, or cafeteria purchases are recurring expenses throughout the academic year.
• Tuition and Fees: Private schools, higher education institutions, and specialized programs often require tuition payments and additional fees.

Budgeting for Back-to-School Expenses

Creating a budget before the school year begins can help families track expenses and allocate resources efficiently, both of which are important in managing education costs. Some strategies include:

• Setting a Spending Limit: Determining an overall budget for school-related costs and prioritizing essential expenses can help prevent overspending.
• Comparing Prices: Shopping around for school supplies, clothing, and electronics can help in finding cost-effective options.
• Using Discount Programs: Many retailers offer student and teacher discounts, seasonal sales, and tax-free shopping days, which can help reduce expenses.
• Planning for Recurring Costs: Monthly expenses such as transportation, meal plans, and activity fees should be factored into the budget.
• Tracking Spending: Using budgeting apps or spreadsheets can provide a clear view of where money is being spent and highlight areas for potential savings.

Exploring Financial Aid and Assistance Options

For students and families facing significant education costs, various financial assistance options may be available:

• Scholarships and Grants: Many schools, organizations, and government programs offer scholarships and grants based on academic performance, extracurricular involvement, or financial need.
• 529 Savings Plans: These education savings accounts allow families to contribute funds for future tuition and other qualified expenses with potential tax advantages.
• Federal and Private Student Loans: For college students, financial aid packages often include federal loans with fixed interest rates, while private loans may provide additional funding options.
• Work-Study Programs: Many universities offer work-study programs that allow students to earn money while gaining work experience.
• Employer Assistance: Some employers provide tuition reimbursement programs for employees or their dependents pursuing higher education.

Smart Shopping Strategies for School Supplies

Saving on school supplies and educational materials can help reduce overall costs. Some strategies include:

• Buying in Bulk: Purchasing commonly used items like pencils, paper, and notebooks in bulk can lower per-unit costs.
• Reusing Supplies: Checking for leftover supplies from the previous school year before making new purchases can help cut unnecessary expenses.
• Considering Second Hand Items: Used textbooks, refurbished electronics, and thrift store clothing can provide cost savings.
• Waiting for Sales: Many stores offer back-to-school discounts closer to the start of the school year.

Managing College Costs

For families with college-bound students, higher education expenses can be significant. Some ways to approach these costs include:

• Applying for Financial Aid Early: Completing the Free Application for Federal Student Aid (FAFSA) as soon as possible may provide access to financial aid opportunities.
• Considering Community College or In-State Tuition: Attending community college before transferring to a four-year university or choosing an in-state public school can reduce tuition expenses.
• Exploring Housing Options: Comparing costs between on-campus housing, off-campus rentals, and commuting from home can help determine a more affordable living arrangement.
• Using Student Discounts: Many retailers, transportation services, and entertainment venues offer student discounts that may help reduce daily expenses.

Planning for Future Education Costs

Thinking ahead about future education costs can help families prepare financially. Some long-term planning strategies include:

• Starting a Savings Plan Early: Setting aside funds gradually for future education expenses can help ease financial strain later.
• Reviewing Financial Goals Regularly: Adjusting education savings goals based on changing financial situations and educational aspirations may help maintain a balanced approach.
• Exploring Additional Funding Sources: Keeping track of new scholarship opportunities, financial aid programs, and tax benefits related to education savings can provide additional support.

Managing Education Costs During Back-to-School Season

Back-to-school financial planning involves budgeting for immediate expenses, exploring financial assistance options, and considering long-term education costs. You can take steps toward managing education costs by identifying top costs, seeking discounts, and applying for available resources. With thoughtful preparation, managing education costs can be more clear and accessible.

Illuminated Advisors is the original creator of the content shared herein. I have been granted a license in perpetuity to publish this article on my website’s blog and share its contents on social media platforms. I have no right to distribute the articles, or any other content provided to me, or my Firm, by Illuminated Advisors in a printed or otherwise non-digital format. I am not permitted to use the content provided to me or my firm by Illuminated Advisors in videos, audio publications, or in books of any kind.

Maximizing Retirement Outcomes Through Advisor-Led Investment Strategies

July 31, 2025

As retirement planning grows increasingly complex, more individuals are turning to professional guidance to navigate the journey. Relying on advisor-managed retirement plans can offer a range of advantages that go far beyond picking the right target-date funds. From personalized portfolio construction and tax-efficient strategies to behavioral coaching and long-term accountability, advisors bring a level of expertise and structure that can significantly enhance your financial outcomes. In a world where market volatility, evolving tax laws, and shifting retirement goals are the norm, having a dedicated expert by your side can make all the difference.

Key Benefits of Advisor-Managed Retirement Plans

✅ 1. Personalized Investment Strategy

Advisors tailor your portfolio based on:

• Age, income, and risk tolerance
• Retirement goals and timeline
• Other assets and liabilities

This level of customization is often more effective than one-size-fits-all solutions like target-date funds.

✅ 2. Behavioral Coaching

One of the biggest threats to retirement success is emotional decision-making. Advisors help you:

• Stay invested during market volatility
• Avoid panic selling or irrational exuberance
• Stick to your long-term plan

✅ 3. Tax Efficiency

Advisors can optimize:

• Asset location (which investments go in tax-deferred vs. taxable accounts)
• Roth conversions
• Required Minimum Distributions (RMDs)

✅ 4. Holistic Planning

They often integrate retirement planning with:

• Estate planning
• Insurance needs
• College savings
• Social Security optimization

✅ 5. Ongoing Monitoring and Rebalancing

Advisors regularly:

• Rebalance your portfolio to maintain your target allocation
• Adjust your plan as your life circumstances or market conditions change

✅ 6. Access to Institutional-Grade Tools

Advisors may use:

• Advanced financial planning software
• Proprietary research
• Lower-cost institutional share classes

Related: More SECURE Act 2.0 Changes: What 2025 Brings to Retirement Planning

Key Differences Between Advisor-Managed and Self-Managed Retirement Plans

By leveraging the expertise of a financial advisor, you gain more than just investment management—you gain a strategic partner committed to your long-term success. In an increasingly complex financial world, that kind of guidance can be the key to turning retirement goals into reality.

Planning for Health Care Expenses in Retirement

July 1, 2025

By: Elaine Floyd, CFP®

Customized Strategies for Your Financial Security

Nearly everyone agrees on the importance of planning for health care expenses in retirement. However, this task can feel overwhelming due to the many unknowns: the future cost of health care, your personal health care needs based on past experiences, your individual life expectancy (which determines how long premiums must be paid), and the potential need for long-term care—the most dreaded possibility for many.

Fidelity has popularized the idea of starting retirement with a lump sum to cover health care costs throughout your lifetime. Their latest estimate suggests that a 65-year-old retiring this year will spend an average of $165,000 on health care expenses and medical expenses during retirement. However, because no one is truly “average,” Fidelity also provides a tool that allows you to personalize this figure by inputting your current age, retirement age, and life expectancy. For example, if you plan to retire at 68 and have a life expectancy of 93, today’s 65-year-old couple would need $392,786 at the start of retirement to fund lifetime health care expenses.

The advantage of such tools is their flexibility; you can see how changes to basic assumptions affect the estimate. However, it’s important to understand what these estimates include. According to Fidelity, their calculation accounts for cost-sharing provisions like deductibles and coinsurance associated with Medicare Part A and Part B (inpatient and outpatient medical insurance), as well as premiums and out-of-pocket costs for Medicare Part D (prescription drug coverage). It also considers services excluded by Original Medicare. Notably, the estimate does not cover other health-related expenses such as over-the-counter medications, most dental services, and long-term care.

While Fidelity’s estimate can serve as a helpful starting point, the reality is that planning for health care expenses — like all financial planning —should be tailored to your unique circumstances. Let’s delve into key areas where we can customize health care planning for you.

Understanding IRMAA: The Income-Related Monthly Adjustment Amount

For 2025, the base Medicare Part B premium is $185. This figure represents about 25% of the total cost, with the government subsidizing the remaining 75%. If the government didn’t assist, the full premium would be $740 ($185 x 4). Since 2007, higher-income beneficiaries have been required to pay more through the Income-Related Monthly Adjustment Amount (IRMAA).

A recent paper, titled How Medicare “Means Testing” and Tax-Deferred Savings Threatens Retirement Security, raises concerns about how IRMAA can significantly increase health care spending for high earners. This cost is further exacerbated by rising balances in tax-deferred retirement accounts. Required Minimum Distributions (RMDs) from these accounts could push high earners into higher IRMAA tiers, resulting in substantial premium surcharges over time.

For instance, a hypothetical couple, age 50 today, with $1 million in tax-deferred savings, contributing $38,000 annually until retirement at 66 and earning a 6% return, would have $4.65 million in their account by age 70. Their RMDs would total $169,689. Over a 25-year retirement to age 90, they could pay $763,193 in Medicare Part B and Part D premiums, with $343,279 attributable to IRMAA surcharges.

While not all clients will face IRMAA-related costs, it’s important to identify strategies to mitigate this risk early. Let’s explore ways we can help you prepare proactively.

Strategies to Mitigate Retirement Health Care Costs

Maximizing Health Savings Accounts (HSAs)

One of the best tools for addressing health care expenses is an HSA. For 2025, the family contribution limit is $8,550, with an additional $1,000 catch-up contribution for individuals over 55. Prioritizing funding your HSA after capturing your employer’s 401(k) match can yield significant benefits. Unlike flexible spending accounts, HSAs are not use-it-or-lose-it, allowing you to let the account grow tax-free. Use other funds for current medical expenses and let your HSA serve as a long-term health care funding source.

Shifting 401(k) Contributions to Roth Accounts

Traditional advice often suggests contributing to tax-deferred accounts while you’re in a high tax bracket. However, this approach doesn’t always account for the IRMAA “surtax.” Over time, growing RMDs and IRMAA costs could result in a combined tax rate higher than anticipated—for example, a 38.5% rate for our hypothetical couple at age 80.

Instead, consider shifting contributions to a Roth 401(k) or Roth IRA. Current tax rates are historically low and could rise in the future. If a Roth option isn’t available, contribute to tax-deferred accounts up to the employer match and allocate additional savings to taxable investment accounts, using tax-advantaged strategies to minimize capital gains.

Roth Conversions

The window between retirement and age 73 is often ideal for Roth conversions. However, high-earning clients may find their tax brackets remain elevated due to future IRMAA costs and higher-than-expected tax rates. The earlier you complete a Roth conversion, the more funds you can shelter under the tax-free umbrella, potentially reducing long-term expenses.

The Top 5 Funding Reminders for Roth IRAs

Need for Long-Term Care

The report Long-Term Services and Supports for Older Americans: Risks and Financing Research Brief says that about half (52%) of Americans turning 65 today will develop a disability serious enough to require long-term care; most will need assistance for less than two years.

A Vanguard-Mercer research paper, Planning for Health Care Costs in Retirement concludes that half of individuals will incur no long-term care costs; a quarter will consume less than $100,000, while 15% will consume more than $250,000.

So you might say the need for long-term care is luck of the draw: either you’ll need it or you won’t; if you need it, you could spend a lot or a little. Here are some of the factors that influence the need for long-term care:

• Age—The older you are (that is, the longer you are expected to live), the greater the likelihood of needing long-term care.
• Gender—Women tend to outlive men so they are more likely to live home alone when they are older.
• Disability—69% of people age 90 or older have a disability.
• Health status—Chronic conditions such as diabetes and high blood pressure make you more likely to need long-term care.
• Living arrangements—If you live alone you are more likely to need paid care than if you live with a partner.

Another factor to take into consideration are your feelings about it. Some are willing to take their chances and hope they’ll be among the 50% who won’t have any long-term care costs, either because they think they’ll die before needing it or won’t mind turning to family or the government (i.e., Medicaid) for assistance. Others will want to make sure they’ll have any potential long-term care costs covered, even if it means buying an insurance policy or setting aside funds for that purpose that they may never need (in which case the fund becomes their legacy).

Life Expectancy

Life expectancy figures into health care planning in two ways: The longer you live, 1) the more you’ll pay in insurance premiums, and 2) the more likely you’ll need long-term care due to the frailties of old age. Although life expectancy can never be predicted with certainty, the Actuaries Longevity Illustrator lets you look at the odds. If your chances of living to the average life expectancy are 50%, what age would you have to plan for in order to have a 20% or 10% or 0% chance of running out of money? The Longevity Illustrator can show you, based on your age now, your gender, whether or not you smoke, and how you rate your health.

The life expectancy conversation goes hand in hand with the long-term care discussion in that both are dependent on your attitude and preference for dealing with uncertainty. Those who want to be 100% sure there will be enough money to pay health insurance premiums (including IRMAA) for the rest of their life, and also cover long-term care expenses in case they might be needed, will want to set aside enough assets or ensure there is sufficient income to pay for everything to age 100, at least. Others might see such planning as overkill and would not be willing to sacrifice current consumption on the unlikely chance that they might live to 100 and need long-term care. They would require some level of planning, setting aside whatever amount they’re comfortable with.

A big part of health care planning is simply understanding what the variables are, even when some of those variables cannot be predicted with certainty. By assessing your comfort level, doing some math, and earmarking a portion of your assets and/or income to health care expenses in retirement, you may avoid surprises at a time in life when you are least able to recover from them. Don’t let the uncertainties of life absolve you of this responsibility. Some planning is better than none.

Tailoring Health Care Planning to Your Needs

Health care planning is a critical component of your overall financial strategy. While tools like Fidelity’s estimate provide a helpful baseline, true success lies in customizing these plans to fit your unique financial situation, income level, and goals. By addressing considerations like IRMAA and proactively managing tax-deferred accounts, we can help secure a brighter financial future for you. Together, we can develop a comprehensive plan to safeguard your financial well-being.

Source: Horsesmouth, LLC
Horsesmouth, LLC is not affiliated with Lane Hipple or any of its affiliates.

Navigating Medicare

May 30, 2025

By: Elaine Floyd, CFP®

Back in the day, when full retirement age for Social Security was 65 and most people retired and claimed benefits then, Medicare basically took care of itself. Enrollment was automatic along with the Social Security application, and many employers offered retiree health insurance to supplement Medicare. Those who didn’t have retiree insurance could buy a Medigap policy to cover prescription drugs (Part D did not yet exist), and some of the gaps left by Medicare, primarily the Part A deductible and the Part B 20% coinsurance. Medicare Advantage did not yet exist. Once a person was on Medicare with their retiree insurance or supplement, there was very little for them to think about. Medical bills were paid behind the scenes and the occasional bill they did receive was easily paid out of pocket.

Medicare is much more complicated today. If you are not receiving Social Security at age 65 (which, hopefully, you are not), you will not automatically be enrolled in Medicare. If you are working past age 65 and staying on your employer plan, you will have to figure out when and how to make the transition to Medicare, also taking your spouse’s insurance into consideration. With medical costs now so high and fewer employers offering retiree coverage, private insurance plays a much bigger role than it did before. This opens up many more choices and complications, all of which hinge on your individual health status and expected health care usage both now and in the future.

Financial advisors are often called to help with Medicare, even though it is clearly outside their financial wheelhouse. But because HR people who are helping employees with the rest of their retirement don’t really understand Medicare (and how it interacts with COBRA), and because you are being bombarded with marketing messages from private insurers who don’t have your best interests in mind, a little direction from your financial advisor can go a long way. It is not necessary for them to pry into your personal health situation, but by receiving a few tools and resources you should be able to navigate Medicare on your own.

Medicare enrollment periods

There are specific times a person can enroll in Medicare. In fact, the Medicare application asks a series of questions to determine if the person is currently in one of the enrollment periods. If not, they will not be allowed to proceed with the application.

The first is when they turn 65. This is called the initial enrollment period. A person can enroll in Medicare up to three months before their 65th birthday. Coverage will start the first of the month they turn 65. If they’re a little late it’s okay—they can apply up to three months after their 65th birthday. Coverage will start the first of the month after they enroll.

The second is called the special enrollment period and it’s for people who want to stay on an employer plan (based on active employment of self or spouse) after age 65. As long as they maintain continuous coverage under the employer plan, they can switch over to Medicare at any time. Most commonly the transition to Medicare is done when they leave employment. But they can do it anytime after age 65 (i.e., while still working) and up to eight months after termination. There is really no reason to utilize the 8-month grace period, though, because it could result in coverage gaps. COBRA pays secondary to Medicare for anyone age 65 or older, so even if a person takes COBRA (too expensive!), they will have to enroll in Medicare.

The third enrollment period is the general enrollment period, from January 1 to March 31 of each year, with coverage starting the month after enrollment. This is for anyone who missed one of the other Medicare enrollment periods. If there has been a gap in coverage, there may be a late-enrollment penalty: 10% of the Part B premium for every 12-month period they went without health insurance after age 65. This penalty will be assessed every year.

Part A and Part B enrollment is through SSA

The Social Security Administration handles Medicare enrollment. The easiest way to enroll is to do it online. Or people can call the main number: 800-772-1213. They’ll need to provide their Social Security number and place of birth as well as current health insurance information. It will not be necessary to prove insurance if they are enrolling during their initial enrollment period. But if they are enrolling after age 65, during their special enrollment period, in order to avoid penalties they’ll need to have their employer sign CMS Form L-564 attesting to their continuous health insurance coverage. If their initial enrollment period overlaps with their special enrollment period, the initial enrollment period takes precedence.

What Clients Need To Know About Opening and Managing Their Social Security Account

Go to Medicare.gov for private insurance options

Once a person is enrolled in Medicare Parts A and B, they can sign up for: 1) a Medigap policy and Part D drug plan, or 2) a Medicare Advantage Plan. Note that enrollment in these plans cannot take place until they are enrolled in Medicare, but shopping can start earlier. People who want to do it themselves can go to medicare.gov and “find health and drug plans” based on their zip code.

If they have opted for Original Medicare with a Medigap policy, they’ll be shopping for both a Part D drug plan and the Medigap policy. For the drug plan, they’ll want to enter their drugs and dosages in order to see what their out-of-pocket costs would be under each plan. If they don’t take any drugs, they can simply choose the lowest-premium plan. (But they can’t skip Part D; if they go more than 63 days without creditable drug coverage there will be a late enrollment penalty.) Drug plans operate a year at a time. If a person’s drug regimen changes or if the plan changes, they can shop for a new drug plan during the fall open enrollment period (Oct. 15–Dec. 7) and the new plan will start January 1. For Medigap, they’ll want to focus on Plan G, the most popular and comprehensive plan. The Medicare.gov website shows the options from the different carriers. “Issue age” is the better pricing method, otherwise premiums will escalate rapidly as they age. Because benefits are the same for all Plan G policies, they’ll be focusing primarily on monthly premiums. For drug plans they can enroll directly through the Medicare.gov website or, if they have further questions, can call the insurer and have them take the application. For Medigap policies they can call the plan or enroll through the company’s website.

People who opt for a Medicare Advantage plan can pull up all the plans in their area and review benefits and costs. Most Advantage plans have very low (or no) premiums, so it will be a matter of reviewing benefits and out-of-pocket costs for the various services. Medicare Advantage shopping can be a challenge because if there are things that are wrong with the plan—such as a narrow provider network or a propensity to delay or deny care—they won’t be apparent other than indirectly through a low star rating.

Open Medicare account

Once a person has enrolled in Medicare they can establish an account at medicare.gov and keep track of their claims, costs, and other information.

While transitioning to Medicare can be rather time-consuming, once it’s set up it should be easy to manage, especially if the person has Original Medicare and a Medigap policy and drug plan. Virtually all Medicare-approved expenses will be covered and paid behind the scenes. Drug plans will need to be reviewed annually, but the switch to a new plan is easy. (Be sure to note if the preferred pharmacy changes.) Medicare Advantage plans could be easy or difficult to manage depending on your health care experience and whether you face delays or denials in care. If you are dissatisfied, these plans can also be changed once a year.

Source: Horsesmouth, LLC
Horsesmouth, LLC is not affiliated with Lane Hipple or any of its affiliates.