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​Are you approaching retirement? If so, you may be thinking about health care coverage. One of the biggest steps in retirement planning is the transition from employer-based health insurance to Medicare.
 
Medicare is a valuable retirement resource that provides health care protection for 44 million Americans, or 15 percent of the population.1 It covers a wide range of medical services, such as hospitalization, doctors’ appointments, prescription drugs and more. You can utilize Medicare Advantage to obtain flexible deductibles and copays and even supplementary coverage for things like dental service.
 
A number of services aren’t usually covered by Medicare, however. One of the biggest is long-term care. That can be a challenge because long-term care is an increasingly common and necessary service. The U.S. Department of Health and Human Services estimates that today’s 65-year-olds have a 70 percent chance of needing long-term care in the future.2
 
Unfortunately, it’s difficult to plan for long-term care needs because you don’t know exactly what kind of care you will need or whether it will be covered by Medicare. Below are some tips and guidance on how Medicare determines whether care is eligible for coverage. You can’t predict your health care needs, but you can plan ahead if you understand what’s covered and what’s not.

What kind of care are you receiving?
 
Medicare generally doesn’t cover long-term care. However, there are exceptions to that rule. It will sometimes pay for skilled nursing care but usually doesn’t pay for custodial care. That’s an important distinction.
 
Skilled nursing care involves treatment for a specific illness or injury. It’s usually provided in a facility and prescribed by a doctor. While skilled nursing may include some forms of custodial care, such as help with eating or bathing, the purpose of the care should be treatment and recovery.
 
Custodial care is more focused on assistance with basic living activities such as mobility, eating, incontinence and more. The goal of custodial care is usually comfort and lifestyle support, primarily because the individual is at a stage where recovery isn’t an option.
 
If care is more of the custodial variety, it probably won’t be covered by Medicare. That’s usually the case with most long-term care services. Many recipients of long-term care suffer from chronic conditions like Alzheimer’s. Since they’re past the point of recovery, care is more about lifestyle support and maintenance.

Where is the care provided?
 
The way the care is provided is also an important factor. Long-term care is often provided in the home or in an assisted living facility. Those places usually aren’t covered by Medicare. Starting in 2019, however, some Medicare Advantage plans will cover certain types of home-based care, but that coverage will be partial and limited.
 
Medicare will temporarily cover skilled nursing care in a facility if it follows a three-day stay in a hospital as a result of a specific medical condition.3 For example, if you’re hospitalized for a stroke or a joint replacement, you may need to stay in a facility to recover. That type of care may be covered.
 
Depending on the length of the skilled nursing care, you’ll likely share the cost with Medicare. During the first 20 days of care, Medicare will cover all costs. Over the next 80 days, though, you’ll likely have a daily copay. After the 100th day of skilled nursing, you must pay for all costs with no coverage from Medicare.3
 
As you can see, Medicare is unlikely to meet all of your long-term care needs. You may want to explore alternative funding strategies, such as a long-term care insurance policy. Contact us today at Rex Financial Group for more information. We can help you analyze your needs and budget, and then implement a plan.
 
1https://assets.aarp.org/rgcenter/health/fs149_medicare.pdf
2https://longtermcare.acl.gov/the-basics/how-much-care-will-you-need.html
3https://www.medicare.gov/coverage/skilled-nursing-facility-snf-care
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
18148 - 2018/10/17

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​The United States economy has enjoyed a prolonged period of economic growth for nearly a decade. Financial markets have reached record levels. Companies have added jobs. Inflation has remained relatively low. Nothing lasts forever, though. The economy and financial markets can be unpredictable. Just because recent history has been positive doesn’t mean the future will be as well.
 
While it’s not possible to predict future economic events, it is possible to plan ahead. There’s always the possibility that a new development could unsettle the financial markets and create challenges. Interest rate increases could cause volatility. The ongoing trade war could become a disruptive force in the economy. Growth could simply slow as the markets and economy correct themselves.
 
Below are a few tips and ideas to consider as you approach retirement and evaluate your financial strategy. Your plan should be based on your unique goals, objectives and concerns. If you’re worried about the state of the economy, and if you’re prepared for change, you may want to consult with a professional.
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Don’t make an impulsive decision.
 
As you approach or enter retirement, it’s natural to become more risk-averse. After all, you’ve worked hard to earn your savings. The last thing you want is for your assets to decline in value just when you need them.
 
However, it’s also important not to make a rash decision. Nothing is permanent, and that includes times of economic uncertainty. If you abandon your long-term strategy and rush to safety, you could cost yourself future growth opportunities.

Instead, assess your long-term strategy and decide whether it still aligns with your needs. It’s possible that you may need to shift to a more conservative allocation. Or there may be tools you can use, like annuities, that protect you from downside risk.

Re-balance on a regular basis.
 
Do you regularly re-balance your 401(k), IRA or other retirement accounts? Many custodians and providers offer this as a free automatic feature. Re-balancing is simply the adjustment of your investments back to your intended allocation. You can do it on a regular basis, such as quarterly or every six months.
 
Re-balancing is important for a couple of reasons. First, it keeps you aligned with your long-term strategy. Over time, some assets increase in value while others decline. That can cause your allocation to get out of balance. When you re-balance, you sell off some assets that have increased to purchase assets that have declined and get your allocation back to its targets.
 
The other benefit is that re-balancing forces you to follow the old idiom of “buy low, sell high.” You’re selling those assets with elevated values and buying those with depressed values. That could help you take advantage of an economic and market fluctuation.

Don’t stop making contributions.
 
If you’re seeing economic uncertainty on the news, you may feel like now is the time to pause your retirement savings. However, that’s usually not a wise strategy. You need every dollar you can save for retirement. Even if there’s volatility in the market or the economy, it’s still important to save.
 
Also, regular contributions can be a helpful investment strategy. When you contribute the same amount regularly, you’re doing something called dollar-cost averaging. You purchase more shares when prices are low and fewer shares when values are high. That could reduce your average cost per share and increase your potential growth.

Work with a professional.
 
Finally, perhaps the best strategy you can take during a period of economic uncertainty is to meet with a financial professional. They can talk through concerns and ideas with you and help you evaluate your options. They may present ideas that you hadn’t considered. Before you take drastic action, talk with a professional and review all your potential courses of action.

Ready to review your investment strategy? Let’s talk about it. Contact us at Rex Financial Group today. We can help you analyze your approach and make sure it’s aligned with your goals. Let’s connect soon and start the conversation.
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
18184 - 2018/10/22