One interesting thing. To the extent that the Affordable Care Act (Obamacare) remains the law, insurers’s profits are limited to 15% of premium. The obvious intent was to prevent price-gouging or getting excess returns. That limit has an unintended consequence. As a result, over the long run, their economic benefit is maximized by rising costs rather than limiting health care costs (and hence limiting their premiums). So they have little interest in the long run in a reduction in health care costs.
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No, I don’t believe so. One part of Medicaid eligibility is income – it doesn’t matter what account you put it into. I looked into this because my mom’s income isn’t very high and she has hardly any savings, but her house is worth a lot.
I ran the Medicaid eligibility calculators a bunch of times. I ran a scenario with zero assets and with NO other money except her SS income, and she’d still be over the threshold for Medicaid, which as you note, is very low. It can vary by state, and in some states the threshold is higher for nursing home care.
It was nice to know there’s no way for her to qualify for Medicaid so I don’t have to worry about jumping through any of those hoops.
For someone who has poverty level SS income, it might work to do the irrevocable trust thing but it can be difficult and requires planning ahead with special lawyer.
There is also a look back period as well, correct? So do this, long long before needed.
I think this is why it’s good to have an elder attorney who hopefully knows the rules in your state.
My parents and my in laws took their social security at 62. My in-laws are confident in the trust their attorney set up and the rules for Medicaid. Other than that I’m not sure myself.
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Your situation is different in that you have 3 parents still living. After that generation is ‘gone’ (or maybe slightly before) you might have a better idea on where you are financially and if there are some immediate ways to potentially ‘help’ which would assist kids/grandkids. My dad kind of realized a few years before he died that his kids could use a bit of ‘gift’ money (all five of us each received $10,000, which came as a gift) - and it was very welcome. My parents died younger (age 64/1995 and age 77/2010) while DH’s parents died at age 92 in 2020/2021. Inheritance from both, more from my parents - but nothing expected from DH’s and due to short time in skilled care with his mother, the house and a few funds were remaining. The house was signed over to the sons years ago, and since then two sons have sold out with granddaughter purchasing their share (her dad is keeping the house maintained). The house is nice to have and to use when we are in that area (maybe once a year), and we allow certain close limited family to also use - we are ‘in’ and this coming year will be the first with paying in on property taxes, which are reasonable with the split. At some future time, we probably will have a big personal family use (DDs/family, others, and us). Nice in the spring/summer/fall (especially summer) - in WI.
We have put some money into a stock account for grandkids (#5 grandkid’s arrival in March) and give the same amount to DD2 (we treat each of our two children the same). Neither DDs own a home, but that will change once SIL has more permanent job in their city they have lived in since mid-2023 (he is in the Army now). DD1/SIL should do fine on home purchase, but if they purchase a property which could have improvements for a suite or a wing added on - that would be an investment for us that we will go in on. First is to ask them if they want us living in ‘their’ city. We would change our primary residence (we built our home in 1992) - for us a transition worthwhile to be where they are.
DH traveled so much with work (nationally and internationally). I do travel without him, but desire is limited with limited costs. I am dual-Swiss citizen, and my last time (5th time, first when I was 12) in Switzerland was 2016 - I spent a month there (29 days with the train pass limit), but no hotels and only one meal purchased (three of us - a couple who traveled for the day to Bern with me, lunch in Bern). My parents hosted so many of my Swiss relatives/friends over many years, and I am close to many. I have also hosted cousin and friends in two of our homes (in TX and AL). DH and I live more remote to areas they want to visit in the US.
I have DDs as beneficiaries for my life insurance policies because DH will not need that money. At this point, DH and I are both turning 69 this year, and too much is up in the air. I do intend to have an inheritance for them though. Intention and reality might be two different things - we have no crystal ball.
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We had our DDs when we turned 38 and 40. Others on this thread might be like us. DD1 has had children ‘right away’, she turned 31 today and will have her 5th child in March, while her DH is 35. He had a later start on a very good career path, but everything he has done is helping his career now. Their joint income is good and DD1 is making more than DH did at the end of his career.
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No crystal ball, but we are on Medicare and supplement and have no worries that Medicare will not be here.
70% of those in nursing homes are on Medicare/Medicaid - and those folks will continue to be cared for!
Most (like us) on this thread are ‘middle class’. We do not pay a ‘premium’ on Medicare Part B because we are middle class.
Can plan all kinds of scenarios - but stating something that hasn’t happened as ‘it will happen’ is not appropriate IMHO (not addressing you but another poster).
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Email your concerns and have your FA run various scenarios - and have FA weigh in with presentation to DH and you. Have FA do the work - but if you need to provide FA more information - let FA tell you that.
Discuss some of the options with DH. Get the conversation going.
$1,000 more a month in X number of years will perhaps not be worth the time value of money coming from that pension now. Have the FA weigh in on the survivor annuity if DH wants it – if he doesn’t, then you have a decision on that.
FA can calm your thoughts about Medicare and SS - and depending what age you are now. DH and I are both 68 and we have Medicare and SS and are not concerned about either stopping.
We waited a little on DH taking SS (our 'full SS would have been at age 67 1/2 and I took mine/smaller one right at 65) - DH took his a few months before he turned 66. His net SS amount started at $2908/month in 2022 and for 2025 is $3354 (they automatically take out his Medicare B which started at $170.10/month in 2022 and now is $185/month in 2025).
One needs to weigh out the time value of money and the gains your money will have in investments.
Our FA said to take SS right at retirement; DH retired at 64 1/2 but I was still working, and we had built up in our checking account (I am 4 months younger than DH). I kept working until I was 65. We had funds in our checking account and only turned on cash flow from annuities and DH’s SS at that point in 2022.
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At this point I can’t say if Medicare will still be around. I like to think how we will manage in the worst scenario and hopefully we’ll be pleasantly surprised.
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As with anything, there are better plans all around with all the choices. I see Medicare Advantage working well for someone homebound or travel very little, and the Medicare Advantage plan that works well in this area for them. One has to be very careful because in some cases very difficult with pre-existing conditions to flip back from one plan to another.
With our plan (which we chose when we started Medicare), as long as we continue, we know what the premiums are – for our Medicare Supplement, we started at $176/month for each of us at age 65, age 66-69 it was $194, and age 70+ it was $215/month. The State allowed a bit higher premium (I am sure premium increases had to go through insurance commission), so we are paying $209/month in 2025 (instead of the 2021/2022 quoted level).
We have perhaps higher cost traditional Medicare, Medicare B, Supplement, and Medicare D drug plan. We went with an excellent plan that will cover us in the US, and we can pay for something that will cover us with international travel (when I do so in a future time period).
Our insurance carrier (one that one would recognize anywhere) just took out a full page ad in our local free weekly paper “What They’re Not Telling You About XXXX XXXXXX Health Plans” - explained the mission of our insurance carrier is “to provide Alabamians access to quality, affordable healthcare…” and essentially 90% of the health insurance costs directly is spent for health care. It went on to talk about the “XXXX’s proposed unregulated health plan is bad for patients, hospital, doctors and the State of Alabama”. A whole lot of detail but very compelling.
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100% agree with @kelsmom. Some Medicare Advantage plans work fine for some - but as with anything ‘the devil is in the details’.
We do not want to deal with denials, hoops to jump, delayed care. I survived aggressive cancer during working years and have had some tumors removed on parathyroid gland Jan 2024. We have our annual Medicare deductible to pay for ‘first care’ in the new year, and then just co-pays on our drugs (which may go down in 2026) - but are very manageable. One of DH’s drugs will eventually be generic.
DH and I have had the same cover insurance coverage for many years and continue it with our Medicare Supplement. For a while the coverage insurance company was with other state headquarter, but after a few years went back to cover within our state.
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And there are insurance companies that will deny claims - and what happens when the time delay causes death?
There are businesses and people that break laws all the time. One has to be careful.
The one company that is being written about locally, “Put simply, XXXX is seeking legislation that would give them ability to deny coverage to anyone with a pre-existing condition, something other health insurers are not permitted to do. Moreover, the legislation XXXX wants the legislature to pass would not require them to provide coverage for necessary services like primary, care, prescription drugs, emergency service or maternal care – all coverages that are required under other insurance plans. XXXX’s simple goal is to limit the people in their plan to younger healthy people – leaving those they deny left to pay more for the coverage that they desperately need. The Legislature should reject this proposal.”
So for all of us, to keep informed and keep making decisions with information from a lot of sources (to hopefully get to good decisions with good information).
Very difficult to predict when to jump out and jump back in.
A lot of talk about Medicaid lately. I always thought Medicaid was for low income/poor folks much like Welfare and SNAP. Seems like people are just trying to beat the system.
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I know people that have their federal insurance (as retirees) because they evaluated at the time of retirement that that was their best option (rather than a Medicare part B supplement). Some retired before age 65 (with full retirement due to years of service) and of course continued their federal insurance.
As things change, just have to evaluate.
I am hopeful that we’ll never need or qualify for Medicaid (assets < $2k). But it is nice to know that safety net is there.
We are not doing any trusts or anything to shied assets from Medicaid in future. In a way it does seem like trying to beat the system. Having said that, we do like to share a bit of our good fortune with the kids now… which in theory does shelter it from the slim possibility of Medicaid criteria someday
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For the record, Medicaid is not limited to low income/poor people.
A big consumer of Medicaid is children, children and adults with disabilities. When you have a child with a disability/health problem there are many services/therapies/equipment that would not be available to them without Medicaid.
And I’ll also say that if we wait for a signed paper affecting Medicare before we make a plan (making plans being the whole purpose of this thread) we would be foolish. Accolades to anyone on the thread taking potential changes to heart and thinking things out.
Never say never!
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I think my relatives have thought that they have paid more than their fair share in taxes over the years. The rich look for what they can to pay less taxes and preserve their wealth for their heirs.
I’m not sure why it’s a problem when the law is written in a way to do what you can to not go broke when needing nursing home care.
It’s like those benefiting from PSLF.
I paid all my school loans. I paid my kids school loans. My son in law though, he gets to have hundreds of thousands of dollars in his loans forgiven.
The rich pay very little of their income in taxes compared to the middle class.
I don’t care what others think though. The law is the law and until it’s changed, I am happy for those who take advantage of it.
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A few of my HS friends were posting about this yesterday. They both have children with disabilities who use Medicaid. And these are middle class retirees.
It’s terrible for their children to lose this.
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In addition, about 70% of nursing home residents are being covered by Medicare/Medicaid.
This will not be lost! As with everything, there are people scamming money from the government, and they are auditing. IMHO, almost everyone needs to calm down.
For those that have not been on lay-off lists, maybe some on this thread may face some job shifting or retiring earlier than hoped for.
Most on these threads seem to plan well and plan for adversity. We have gone through adversity, health wise and financial wise.
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