Summer is a good time to assist clients with Medicare review as there’s a natural break from reviewing tax-related issues and before year-end decisions. It’s also a time when clients may be in better health and can step back with a clear mind to discuss their health, what procedures they have undergone or anticipate, and the types of needs they may have in the coming year.

Key questions to ask clients can include:

• Were you happy with your Medicare plan in 2012?
• Are you happy with the Medicare plan you have for 2013?
• Do you anticipate any medical procedures in the coming year?
• Did you have any surprising medical expenses?
• Did you hit the prescription drug donut hole? How did you handle those costs?
• Are you planning to relocate in 2014?
• Have you experienced any significant changes in your income? What about life changes (e.g., death of a spouse, divorce)?

The above are just a few of the issues that financial advisors can help their clients to evaluate.

It’s important to make the connection between healthcare needs and costs and clients’ financial well-being. This is another important value financial advisors can add to the complete picture their clients have in retirement and as they age.

Medicare premiums are income based, and those with higher incomes can pay higher premiums for Part B (medical insurance) and Part D (prescription drug) plans amounting to hundreds of dollars. Life changes can affect this annual income, which in turn may affect your client’s Medicare plan selections. Reaching the prescription drug donut hole also can add to the out-of-pocket costs Medicare beneficiaries may have to pay.

So, there are a number of ways Medicare choices end up impacting your clients’ financial resources for the short and long term.

Growing Interest in Medicare Advantage Plans

Enrollment in Medicare Advantage plans has increased by 30 percent since 2010, which raises an important area of discussion for financial advisors to address with their clients.

Individuals using original Medicare purchase Parts A (hospital insurance) and B (medical insurance) and also have the option to purchase Part D prescription drug coverage. In addition, they can buy Medigap or supplemental coverage, for any gaps that aren’t covered by Parts A and B.

In comparison, more than 14 million people are choosing Medicare Advantage plans, or Part C plans, which can provide a combination of coverage equal to what they would receive under original Medicare.