Birthday Benefits Quiz

Remember when you turned 16 and rushed to get your driver’s license? Or earned the right to vote at 18 and enjoyed the privileges and responsibilities of adulthood at 21? There aren’t many legal changes associated with birthdays after that until you turn 50, and then there are plenty. 

Can you match these ages to the related federal benefits and tax responsibilities? One age will be used twice.

50   55   59½   62   65   67   70   73   75

___ 1. Eligible for full Social Security benefits for those born in 1960 or later

___ 2. Earliest age to make catch-up contributions to a traditional IRA or an employer-sponsored retirement plan

___ 3. Eligible for maximum Social Security benefit

___ 4. Must begin taking required minimum distributions from most tax-deferred retirement plans, for those born from 1951 to 1959

___ 5. Eligible to enroll in Medicare

___ 6. Earliest age to make catch-up contributions to a health savings account

___ 7. Earliest eligibility age to begin taking reduced Social Security worker benefits

___ 8. Must begin taking required minimum distributions from most tax-deferred retirement plans, for those born in 1960 or later

___ 9. Eligible to withdraw money from a tax-deferred IRA or employer-sponsored retirement plan (for most employees) without incurring a 10% federal tax penalty

___ 10. Eligible to withdraw money from a tax-deferred employer-sponsored retirement plan without incurring a 10% federal tax penalty, for an employee who separates from service with the employer

For further information, visit irs.gov,  socialsecurity.gov, and medicare.gov.

Answers

1. 67; 2. 50; 3. 70; 4. 73; 5. 65; 6. 55; 7. 62; 8. 75; 9. 59½; 10. 55 (50 or after 25 years of service for qualified public safety employees)

IMPORTANT DISCLOSURES

The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

Securities and investment advice offered through Investment Planners, Inc. (Member FINRA/SIPC) and IPI Wealth Management, Inc., 226 W. Eldorado Street, Decatur, IL 62522. 217-425-6340.

New Medicare Rules Tackle Prescription Drug Prices

The Inflation Reduction Act of 2022 included provisions intended to lower prescription drug costs for Medicare enrollees and slow drug spending by the federal government. According to an estimate by the Congressional Budget Office, the law’s drug pricing reforms could reduce the federal budget deficit by $237 billion over 10 years (2022 to 2031).1

Here’s an overview of the changes to the Medicare program — which covers 64 million seniors and people with disabilities — and timelines for when they take effect.
Drug Price Negotiation

For the first time, the federal government will negotiate lower prices for some of the highest-cost drugs covered under Medicare Part B and Part D. The first 10 drugs selected for the negotiation program were announced in August of 2023. The negotiated “maximum fair prices” for the initial 10 drugs are to be published by September 1, 2024, and go into effect starting January 1, 2026. Up to 15 drugs will be subject to negotiation each year for 2027 and 2028, and up to 20 more drugs for each year after that.2

By one estimate, the list prices of about half of all drugs covered by Medicare between 2019 and 2020 rose faster than inflation.3 To discourage this practice, manufacturers of drugs covered under Medicare Part B and Part D will be required to pay rebates to the federal government if price increases for brand-name drugs without generic or biosimilar competition exceed an inflation-adjusted benchmark (beginning in 2023).

Inflation Rebates

Medicaid, a federal program that provides health coverage for low-income Americans of all ages, already receives similar inflationary rebates.

Redesigned Part D Benefits

The new law also modifies the design of Medicare’s benefits and shifts liabilities so that Part D insurance plans will pay a larger share of the program’s drug costs, while enrollees and the government pay less. 

Under the 2023 Medicare Part D standard benefit, enrollees pay a $505 deductible and 25% of all drug costs up to the catastrophic threshold, and then a 5% coinsurance (above $11,206 in total costs or $7,400 in out-of-pocket costs). But there is currently no limit on the total amount that beneficiaries might have to pay out of pocket if high-cost drugs are needed.

Starting in 2024, the 5% coinsurance requirement for Part D prescription drugs in the catastrophic phase is eliminated, which effectively caps enrollees’ out-of-pocket drug costs at about $3,250. A hard cap of $2,000 will apply to out-of-pocket costs for Part D prescription drugs in 2025 and beyond (adjusted for inflation). Annual premium increases will also be limited to no more than 6%.4

Insulin Cost-Sharing Limits

Starting in 2023, deductibles will not apply to covered insulin products under Medicare Part D or Part B for insulin furnished through durable medical equipment. Also, the applicable copayment amount for covered insulin products will be capped at $35 for a one-month supply.

Medicare enrollees who live with a chronic disease like diabetes or face any illness that requires treatment with high-cost specialty drugs (such as cancer or multiple sclerosis) could see significant savings in the coming years thanks to these changes. Still, younger individuals who are uninsured or have private insurance plans with high deductibles could continue to feel financial pain from rising drug costs — with one notable exception.

Three major drugmakers have announced deep price cuts of at least 70% for older forms of insulin. These decisions may have been influenced by public backlash, new competition, and changing market dynamics, along with the threat of financial penalties soon to be imposed by Medicaid because drug prices were raised faster than the rate of inflation.5

1) Congressional Budget Office, 2023

2) U.S. Department of Health and Human Services, 2023

3–4) Kaiser Family Foundation, 2023

5) USA Today, March 16, 2023

IMPORTANT DISCLOSURES

The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

Securities and investment advice offered through Investment Planners, Inc. (Member FINRA/SIPC) and IPI Wealth Management, Inc., 226 W. Eldorado Street, Decatur, IL 62522. 217-425-6340.

Older Americans and Medicare Call Scams

How a Medicare Scam Begins:

  • Hi, this is Casey. I’m a Medicare advisor calling on a recorded line. How are you today?
  • This is Shelly in the Medicare enrollment center, on a recorded line, and I see here in the past
    you inquired about your Medicare supplement coverage. Can you hear me OK?

Robocall scams can often seem random, but that’s not always the case. Sometimes they are highly targeted – as with older Americans whose Medicare eligibility opens the door to health insurance fraud.
Be aware that bad actors may spoof the number that appears on your caller ID so that an incoming call seems to be from a government agency or a health provider that you already know and trust. They do this to entice you to answer. When you pick up, a scam caller usually starts chatting you up to engage you, asking you conversational questions to put you at ease. Whatever scam scenario follows, the caller is trying to get your personal information, such as your Medicare card number, your Social Security Number, or other health insurance identification.

For your awareness
▪ Medicare does not call you uninvited and ask you for personal or private information.
▪ You will usually get a written statement in the mail before you get a phone call from a government agency.
▪ Calls requesting health insurance information should not be trusted.
Medicare.gov advises that you take the following precautions:
▪ Never give your Medicare card, Medicare Number, Social Security card, or Social Security Number to anyone except your doctor or people you know should have it (like insurers acting on your behalf or people who work with Medicare, like your State Health Insurance Assistance Program (SHIP). Get the contact information for your local SHIP.
▪ Do NOT accept offers of money or gifts for free medical care.
▪ Don’t allow anyone, except your doctor or other Medicare providers, to review your medical records or recommend services.
▪ Never Join a Medicare health or drug plan over the phone unless YOU called Medicare.
▪ If someone asks you for your information, for money, or threatens to cancel your health benefits if you don’t share your personal details, hang up and call 1-800-MEDICARE (1-800-633-4227) or visit medicare.gov. Be vigilant. Scammers can be very convincing, and they may know a little – or a lot – about you, especially if they have access to some of your personal information already. Follow these simple tips to avoid spoofing scams:
▪ Don’t answer calls from unknown numbers.
▪ If you answer and the caller isn’t who you expected, hang up immediately.
▪ Never give out personal information such as account numbers, Social Security numbers, mother’s maiden names, passwords or any other self-identifying response to an unexpected call.
▪ Use caution if you are being pressured for information immediately.
▪ If a caller claims to represent a health insurance provider or a government agency, simply hang up. You can then call back using a phone number on an account statement, in the phone book, or on an official website to verify the caller’s authenticity.

Stay informed
“Medicare & You: Preventing Medicare Fraud,” a video from the Centers for Medicaid and Medicare Services, advises you to “hang up the phone if someone calls and asks for your Medicare number.” It also urges you to guard your Medicare number like you would your credit card numbers.
You can browse FCC Consumer Help Center Posts and Scam Glossary to learn about similar scams, including open enrollment health insurance scams.
You can also file consumer complaints about phone scams with the FCC or the FTC.

Read the FCC Complaint Center
FAQ to learn more about the FCC’s informal complaint process, including how to file a complaint, and what happens after a complaint is filed. The FCC does not endorse any commercial product or service.

Consumer Help Center
Learn about consumer issues – visit the FCC’s Consumer Help Center at fcc.gov/consumers.
File a Complaint with the FCC
Visit our Consumer Complaint Center at consumercomplaints.fcc.gov to file a complaint or tell us your story.
Related Content
▪ Consumer Guide: Spoofing and Caller ID
▪ Consumer Guide: Unwanted Calls and Texts
▪ More Consumer Help Center Posts
Source: https://www.fcc.gov/older-americans-and-medicare-scams


IMPORTANT DISCLOSURES
The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
Securities and investment advice offered through Investment Planners, Inc. (Member FINRA/SIPC) and IPI Wealth Management, Inc., 226 W.
Eldorado Street, Decatur, IL 62522. 217-425-6340.