Is this IEP Med Supp sale valid?

[senior-advisor-indiana]

All this highly technical insurance jargon throws me every time!

Which is why you shouldn't post on this site....

 

[somarco]

not so sure that Bob was referring to Plans F, D and L in that post.

Did not go back to find "my" post. Have never sold plan L. Had to look it up. Certainly would never recommend it. If someone wants a low premium plan HDF is better than plans K, L and Q.

Or is there another Bob that has hijacked my posts?

 

[goillini52]

Did not go back to find "my" post. Have never sold plan L. Had to look it up. Certainly would never recommend it. If someone wants a low premium plan HDF is better than plans K, L and Q.

Or is there another Bob that has hijacked my posts?

"
Over the last 40+ years in this industry I have met quite a few agents who have no clue what they are doing, and no desire to learn. Yet they manage to make a pretty good living.

F, D & L

Amazing how far you can go in life without knowing crap about your industry.

Met an agent several years ago. In the health ins business for 25+ years. Had no idea CF was fatal. Even told me his client's son had CF and "looked healthy" so there must not be anything really wrong with him.

Way too many agents like that."

The doctor is in. Five cents please.

 

[somarco]

OK, still have no clue about F, D & L.

Maybe too much alcohol?

Probably should not be on here after 5PM.

Or some days, before 5PM either.

 

[russelltw]

It is rare. I only come across it when I run into someone still working at 65 who wants to keep employer coverage but has drug coverage at work that does not meet Medicare’s minimum standard. They will take Parts A and D, wait on B and get an SEP for it at retirement.

I had a situation like this. The case happens when the employer offers an HSA type group coverage. The drug coverage in this case wasn't creditable for Medicare. HR let the client know. We signed up for D and deferred B until he retired.

 

[senior-advisor-indiana]

OK, still have no clue about F, D & L.

Maybe too much alcohol?

Probably should not be on here after 5PM.

Or some days, before 5PM either.

It was a nice trap you set for LD. Well played...

 

[WCMason]

I had a situation like this. The case happens when the employer offers an HSA type group coverage. The drug coverage in this case wasn't creditable for Medicare. HR let the client know. We signed up for D and deferred B until he retired.

Right. HSA plans are the ones most likely not to have creditable drug coverage. The irony is that the tax free in/tax free out HSA contributions are the best feature of the HSA. Having to enroll in Parts A and D to avoid an LEP makes any HSA contributions subject to excess contribution IRS penalties. I’d probably take the future LEP to preserve the right to max out my HSA.

 

[DS4]

. I’d probably take the future LEP to preserve the right to max out my HSA.

That is how I advise on these rare situations. LEP is much smaller in cost compared to the tax benefit of the HSA contribution.

 

[kgmom219]

Did not go back to find "my" post. Have never sold plan L. Had to look it up. Certainly would never recommend it. If someone wants a low premium plan HDF is better than plans K, L and Q.

Or is there another Bob that has hijacked my posts?

I thought that "L" was a typo.

That is how I advise on these rare situations. LEP is much smaller in cost compared to the tax benefit of the HSA contribution.

Question...how do you get around this? I have always interpreted it to mean at Age 65 and Part A, you can no longer contribute to an HSA.

Not be covered by Medicare (but the individual can be HSA eligible for the months before being covered by Medicare)

IRS Publication 4885
Shared Files - Acrobat.com

 

[DS4]

I thought that "L" was a typo.


Question...how do you get around this? I have always interpreted it to mean at Age 65 and Part A, you can no longer contribute to an HSA.

Not be covered by Medicare (but the individual can be HSA eligible for the months before being covered by Medicare)

IRS Publication 4885
Shared Files - Acrobat.com

Generally, someone still working with group coverage at age 65 will only trigger Part A. Not Part B. If they have an HSA they are contributing to, don't enroll in Part A. Hopefully, LostDollar can clarify this better for me.