Most seniors who work with financial advisors do not talk to them about Medicare, so advisors should bring up the subject, says a Medicare advisor firm.
Allsup, a provider of Medicare advice and the producer of the Allsup Medicare Advisor, is offering a number of tips for advisors who have older clients dealing with Medicare issues. An Allsup survey shows that only 29 percent of women and 27 percent of men who are seniors and work with advisors have discussed Medicare with them.
Advisors need to take the initiative in introducing the topic, Allsup says. Clients should be encouraged to evaluate their Medicare plan choices as part of their retirement planning. This should be done when they first become eligible for Medicare and at each subsequent open enrollment period.
Advisors need to explain to clients that Medicare can involve more than just a monthly payment. It also has deductibles and co-pays, plus ways to save money, Allsup says.
Allsup says advisors need to help clients understand how the death of one spouse can affect the other’s health care coverage.
Men and women have different areas of concern when it comes to health insurance, and advisors need to understand the differences, Allsup says. For instance, women’s top concern, according to the Allsup survey, is that monthly premiums for medical coverage will increase more than they expect. The leading concern for men, on the other hand, is that out-of-pocket expenses will increase more than they expect.
“Understanding the differences in attitudes, as well as having a realistic understanding of Medicare costs and health-care expenses, is one way financial advisors can further help clients when planning for retirement,” says Mary Dale Walters, senior vice president of Allsup Medicare Advisor.