Even if you don’t qualify for full-LIS benefits, you could be eligible for partial-LIS benefits if your income level is at or below 150% FPL (resource limits also apply - see charts below).
Remember, the LIS subsidy or Extra Help may help pay your monthly Medicare Part D plan premiums and a portion of your formulary drug costs.
2020 Federal Poverty Level (FPL) Tables
Hospital indemnity insurance is coverage you can add to your existing health insurance plan. This form of supplemental insurance pays you a predetermined benefit amount per day for each hospital confinement. They usually pay you this daily benefit amount for up to a year.
What Does It Cover?
The coverage your hospital indemnity insurance provides will depend on your plan choice. In general, most plans cover:
- Hospital confinement (with or without surgery)
- Intensive Care Unit (ICU) confinement
- Critical Care Unit (CCU) confinement
- However, there are plans that cover even more. Some hospital indemnity coverage also includes :
- Outpatient surgery
- Continuous care
- Outpatient X-rays and laboratory procedures
- Outpatient diagnostic imaging procedures
- Emergency rooms
- Physician office visits
How Much Does Hospital Indemnity Coverage Cost?
The monthly cost of a hospital indemnity plan will depend on your plan choice, age, gender, and possibly your tobacco use. For example, plans that offer fewer benefits may range from $5 to $41 per month. Plans that offer a wider range of benefits can vary anywhere from $27 all the way up to $427 per month.
Contact a licensed agent for exact benefits and coverage costs available in your area.
How Much Can the Average Hospital Stay Cost You?
With a comprehensive health insurance plan, you are still responsible for co-pays and coinsurance. On top of that, you are still required to pay your annual deductible before your plan will start covering the cost of your care. Can you predict how much you’ll owe without hospital indemnity insurance?
A 4-year study conducted by the University of Michigan revealed that a stay in the hospital could cost you over $1,200 in out-of-pocket costs (with an employer-based health insurance plan). If you have an individual health insurance plan, you could face $1,800 in out-of-pocket costs. During this study, deductibles increased 86% and coinsurance increased 33%. If out-of-pocket costs continue to rise, you will be responsible for even more money despite your health insurance coverage.
Are There Waiting Periods for Benefits?
Waiting periods vary for hospital indemnity insurance. In general, there is a 30-day waiting period before your benefits can be used toward an illness that results in hospital confinement. However, there may not be a waiting period for accidental injuries that land you in the hospital. Make sure to ask your agent about waiting periods before purchasing a hospital indemnity insurance policy.
How Does It Pay Out Benefits?
Like most supplemental insurance plans, hospital indemnity insurance pays cash benefits. This means the benefit amount you have chosen is sent directly to you instead of to your doctor or hospital.
Can You Add Dependents to a Hospital Indemnity Plan?
In some cases, yes. It is possible to add dependent children to some hospital indemnity plans. However, there will be an additional monthly premium per dependent.
Many retirees face tough decisions when it comes to their finances and how to ensure their money last them for the rest of their lives. They face new challenges from the growing cost of Healthcare and Prescription Drugs, to having adequate life insurance. Other factors are deciding whether to keep their home or down size, because they don’t have enough monthly income.
Retirement is when you leave the workforce, but it doesn’t mean becoming inactive or that you necessarily stop working. You might retire from one job and start another. Retirees have a wealth of experience and those in good health often find ways to share this knowledge, even as volunteers, helping others start a business or supporting a local charity or public service agency. They have time and opportunity without the responsibility of a regular job. The trouble with retiring is most retirees didn’t create a solid financial plan while they were working.
- In 2017, an estimated 171 million workers are paying into Social Security, while 51% of the workforce are not contributing into any type of private pension coverage. Workers report that 31% have no savings set aside specifically for retirement.
- Social Security has become the major source of income for most of the elderly. In 2017 about 43% of the senior population in the United States, rely strictly on Social Security for 90% or more of their income. Here are some key factors regarding the senior population:
- In 1940, the life expectancy of a 65-year-old was almost 14 years, today it is about 20 years, so most of our seniors are living longer.
- By 2035, the number of Americans 65 and older will increase from approximately 48 million today to over 80 million.
- There are currently 2.8 million workers for each Social Security beneficiary. By the year 2035, there will be only 2.2 million covered workers for each new Social Security beneficiary. This is because of the number of Baby Boomers retiring during this period.
New Benefits & Financial Services (NBFS) uses a consultative approach. We believe in educating our client’s verses selling. Educating and listening to their needs helps us create the best strategies in achieving their goals.
Building a solid financial plan for retirement is like building a house. The foundation needs to be strong to support your overall needs and last you a lifetime. Whether you’re just starting out or revisiting your finances after a family or lifestyle change, there are four key steps that can lay the cornerstones of a solid financial plan.
The 4 Key Steps
A solid financial plan needs to be structured into four key saving strategies; Emergency, Retirement, Opportunity and Investment. If these strategies are properly structured, you could create a roof of protection from Taxation and Inflation, which will bring you financial success.
- Emergency Fund: In the event of a financial setback, illness or unexpected expense, you’ll want an emergency fund that can cover three to six months of expenses—in a savings account or other safe account that’s easily accessed within three to five days without penalty. This fund should be liquid and immediately available (e.g. money in the bank).
- Retirement Funding: Most workers believe contributing to a 401(k) or other retirement plan is the proper way to prepare for retirement. Your retirement fund should consist of funding that grows Tax Deferred or free from taxation. These funds should be setup into some type of guaranteed vehicle that is guarded from Market Volatility. You will receive growth potential during accumulation with no risk to your principal.
- Investment Funding: Once you have the Emergency and Retirement funding in place, you’ll be ready to save and invest for other goals, including short- and mid-term needs, college funding for your children and additional money for retirement. Normally this would be your investment into employee benefits or company matching plans, like 401(k) or 403(b). An employer matching plan allows the employee to take advantage of extra money being contributed by their employer. In most cases, dollar for dollar up to a certain percentage. If you don’t have access to a plan at work, setup your own IRA retirement plan.
- Opportunity Income: Once you’ve setup your main three funding vehicles, some people consider starting an opportunity vehicle on the side, which allows them to take higher risk for potentially higher rewards. These funds are being invested into a business or rental properties, but could occur losses of principal. This is the higher risk reward for retirement.
Life and Health Insurance are the cornerstone of a strong financial plan. Life insurance protects your survivors in the event you die prematurely. In addition to the death benefit, permanent life insurance policies accumulate cash value. That’s money you could access for emergencies. If you no longer need the full death benefit, you could also use the cash value to supplement your retirement. Health insurance provides protection from sickness or accidents, while you are building a solid retirement plan. The rising and high cost of healthcare could wipeout your funds without adequate or no coverage at all. Recent studies show that 60 percent of people go bankrupt, or accumulate bad credit, because of high medical bills.
NBFS offers a broad and personalized service, because of our relationships with many major providers. Our proven track record has earned us positions with hundreds of various financial institutions, allowing us to offer the best strategies on the market.
We gather preliminary information for a confidential profile. Then analyze your data and prepare a blueprint suited to your individual needs. Finally, we present the results to you so you may make an educated choice.