Safe Money 8-17-24

Episode Transcript

Speaker 1 (00:00):
Good Saturday morning to all on this mid August weekend.
Schools are starting soon or maybe they have already started.
This is Dick Schulig, and this is safe money. We're here,
We've been here for a long time now, encouraging listeners
to be safe with their investment decisions. First and foremost

(00:23):
this morning, remember the thirtieth annual Run with Carl is
coming up here very soon, in just a couple of weeks.
On Labor Day, September two is the thirtieth annual Run
with Carl. So if you're not yet registered, you go
to www. Run with Carl and do so today. Secondly,

(00:48):
we will continue our virtual monthly community meetings next week.
On Tuesday, August twentieth, Greg talks about the basics of
Medicare and then on the Medicare supplement plans available. You
recall there are ten Medicare supplements and you get to
choose one of these ten plans. Two days later, on Thursday,

(01:13):
August twenty second, Craig again reviews the basics of Medicare
and then focuses on the alternative to Medicare, and that
alternative is the Advantage Plan, and what we believe is
the more competitive of these plans, and that is the
AAARP Medical Advantage Plan offered by United Healthcare. So if

(01:37):
you would like to participate in these meetings, remember these
meetings are virtual, so you use the internet to We
use the internet to broadcast these meetings. You remain in
the privacy of your own home. Call Craig at five
six three three three two twenty two hundred to receive
instructions on how to join these meetings. You will find

(02:02):
these v You will find in these meetings very helpful
and very informative. Attendees that are prior meetings all tell
us us the same thing. They say, Now I understand
the choices I have with Medicare. My gosh, with Medicare,
there are ten Medicare supplements. There are something like eighteen

(02:26):
prescription drug plans. There's like eight advantage plans. So I know, listeners,
you get inundated with lots of solicitation requests from various
Medicare products. So how do you make sense of all
these That's what our virtual community meetings are for. We

(02:47):
used to have these meetings in person, and we used
to go to a meeting area somewhere and then people
will come in and we make that presentation for Medicare supplements,
and then another day we would do Medicare advantage plans.
Now with COVID, we found that it is more convenient

(03:08):
really if if you stay in the privacy of your
own home and just tune into our internet broadcast on
these topics and to get instructions on how to do that,
call Craig. Call Craig at five six three three three
two twenty two hundred, call him a few days before Tuesday,

(03:31):
August twentieth or Thursday August twenty second. On Tuesday, we remember,
Craig talks about the basics of Medicare and then focuses
on the Medicare supplements. Two days later, on Thursday, August
twenty second, Craig again reviews the basics of Medicare and
then his focus is on the alternative to Medicare, and

(03:55):
that alternative is the advantage plan. And what we believe
is the more competitive of these advantage plans, and that's
the AAARP Medicare Advantage Plan offered by United Healthcare. So again,
if you'd like to participate in these meetings, please give

(04:15):
us a call. Calls at five sixty three three three
two twenty two hundred, or go to my website. Go
to dickshillig dot com, scroll over to the contact icon
for my email address, and if you just like to
drop me an email and correspond in that manner, I'd
be happy to do so. In twenty twenty four, more

(04:40):
than half, or fifty four percent of eligible Medicare beneficiaries.
That's thirty two million people out of sixty one million
Medicare beneficiaries with both Parts A and Part B are
enrolled in medical care advantage plans. So that's half of

(05:03):
all Medicare recipients. Fifty four percent are enrolled in Medicare
advantage plans. Medicare advantage enrollment as a share of the
eligible Medicare population has jumped from nineteen percent in two
seven to fifty four percent in the year in twenty

(05:27):
twenty four. Boy, think about that, only nineteen percent of
Medicare beneficiaries participated in advantage plan in the year two seven.
Now today, in the year twenty twenty four, we have
over fifty four percent. So more than half of Medicare

(05:51):
beneficiaries are in advantage plans. So between twenty three and
twenty four, total Medicare advantage enrollment grew by about two
point one million beneficiaries, or seven percent, a similar growth
rate as in the prior year eight percent. So the

(06:13):
Congressional Budget Office projects the share of all Medicare beneficiaries
enrolled in Medicare advantage plans will increase to sixty four
percent in the next ten years. So from fifty four
percent which we have now, to sixty four percent of

(06:33):
eligible Medicare beneficiaries will be enrolled in Medicare advantage plans.
So in twenty twenty four, nearly two thirds of Medicare
advantage enrollees are in individual plans that are open for
general enrollment. Now there are some group retiree plans that

(06:57):
offer advantage plans, but we are talking about individual plans
that are open for general enrollment. More than six and
ten More than six in ten Medicare advantage in rollees,
or twenty point five million people are in plants generally
available to all beneficiaries for individual enrollment. That's an increase

(07:22):
of zero point nine million enrollees compared to twenty twenty three.
Individual plans have declined as a share of total Medicare
enrollments since twenty ten. More than six point six million
Medicare beneficiaries are enrolled in special needs plans in twenty

(07:46):
twenty four, more than double enrollment in twenty nineteen, so
on five years, that was a tremendous, tremendous increase. More
than six point six million Medicare beneficial trees are enrolled
in special needs plans SNIPS special needs plans. Special needs

(08:07):
plans restrict enrollment to specific types of beneficiaries with significant
or relatively specialized care needs, or who qualified because they
are eligible for both Medicare and Medicaid. Enrollment in SNIP
plants increased by sixteen percent between twenty three and twenty

(08:29):
four and accounts for twenty percent of the total Medicare
advantage enrollment in twenty twenty four and increase from twelve
percent in twenty ten. Since twenty nineteen, SNIP enrollment has

(08:49):
more than doubled from two point nine million to six
point six million dollars. This increase is due in part
to the increasing nun number of SNIP plans available on
the average and more dual eligible individuals having access to
these plants. Most SNIP and rollees a matter of fact,

(09:11):
eighty eight percent are in plans for beneficiaries duly enrolled
in both Medicare and Medicaid. That's called d SNIP plans.
Another ten percent of snip and rollies are in plants
for people with chronic or disabling conditions in two percent

(09:34):
or in plants for beneficiaries requiring a nursing home or
institutional level of care. SNIP enrollment varies across the states.
In the District of Columbia and Puerto Rico, snip and
rollies comprise about half of all Medicure. Of all Medicare

(09:54):
and rollees in nine states and nine states snip and
roa that counts for at least a quarter of Medicare
advantage enrollments. So there's got to be something to those
advantage plans. So if you are becoming eligible for Medicare
sometime during the balance of twenty twenty four, if you

(10:17):
are becoming eligible turning age sixty five, then boy, there's
something to be said for these these advantage plans. So
I encourage you to look into those plans and determine
if they are appropriate for you. As with other Medicare

(10:38):
advantage plans, employer and union group plans may provide additional
benefits in lower cost sharing than traditional Medicare, and are
eligible for bonus payments if they obtain required quarterly scores
the employer or union and sometimes the retire They also

(11:00):
pay an additional premium for the supplementary for the supplemental benefits.
Group enrollees comprise a quarter or more of Medicare advantage
plans and rollies in nine states. So there's a tremendous
participation in the Medicare advantage plans and an increasing participation

(11:24):
in the Medicare advantage plans. Frozen cons to original Medicare,
just as there are frozen cons to Medicare advantage plans.
We encourage you to take a look at both of
these plans, and that's why we have our virtual meetings

(11:45):
coming up here on August twentieth. In August twenty second,
Remember in August twentieth we talk about the basics of
Medicare and then the Medicare supplement plans that are available. Remember,
there are ten Medicare's uppoment plants. You get to choose
one of those plans. There are eighteen prescription drug plans.

(12:10):
You get to pick one of those eighteen plans. Medicare
Advantage plans, which we are the topic of our subject
which are on Thursday, August twenty second, we talk about
the advantage plans, and especially we talk about what we
feel is the more competitive of the advantage plans, and

(12:32):
that is the AARP Medicare Advantage Plan, which is offered
by United Healthcare. You know, United Healthcare and Humana account
for nearly half of all Medicare advantage and enrollies nationwide
this year. In twenty twenty four, that's United Healthcare and Humana.

(12:55):
United Healthcare and Humana both offer advantage plans as an
alternative to original Medicare, So those two companies, United Healthcare
in Humana have half of all Medicare advantage enrollees. Together,

(13:15):
United Healthcare in Humanita account for nearly half of all
Medicare advantage in enrollees nationwide, the same as in twenty
twenty three. In more than a quarter of counties twenty
nine percent, or in over nine hundred counties, these two
companies account for at least seventy five percent of Medicare

(13:40):
advantage enrollment. United Healthcare and Humana have consistently accounted for
a relatively large share of Medicare advantage enrollment. Now listeners
you know that both Craig and I and RJS and
Associates we are independent agents, so we represent more than

(14:02):
one insurance company, and we can pick and choose and
determine which of the advantage plans are the more competitive.
And this year we've this year and last year we
came up with the United Healthcare Advantage Plan as being

(14:23):
the more competitive advantage plans of all the advantage plans
are that are being offered. Now, if we have a
listener that has some allegiance to another company, we probably
represent that company as well, so we can help you
participate in that program from that company if you'd like

(14:44):
to do that, so again, give me a call five
six three three three to two twenty two hundred, or
go to my website. Go to my website, go to www.
Dickshillig dot com and scroll over to the contact icon
from my email address, and if you'd like to correspond

(15:06):
confidentially with the email, I'll be happy to do that
with you as well. United Healthcare has had the largest
share of Medicare advantage in enrollment and the largest growth
in enrollment since twenty ten, increasing from twenty percent of

(15:26):
all Medicare advantage enrollments in twenty ten two twenty nine
percent this year, so from twenty percent of all Medicare
enrollments to twenty nine percent in twenty twenty four. Humani

(15:48):
has also a high share of Medicare advantage enrollment, though
its share of enrollment has grown more slowly, from sixteen
percent in twenty ten to eighteen percent in twenty twenty four.
Blue Cross Blue Shields plans share of a moment has
been more constant over time, but has declined moderately since

(16:13):
twenty fourteen, and that in part is due to the
more competitive nature of the advantage plans. The advantage plans
offer tremendous coverage for sickness, and they offer tremendous coverage
for wellness because original Medicare does not do anything with vision,

(16:38):
with dental, or with hearing programs, So the advantage plans
offer extensive coverage for not only illnesses, but for those vision, dental,
and hearing plans, those wellness plans as well. So that's
why we have such an attractiveness to those Medicare advantage plans. Now,

(17:02):
if you are aging into Medicare right now, I know
you are receiving tons and tons of solicitation requests by
different insurance companies, and it all gets confusing. My gosh,
there's ten Medicare supplements, eighteen prescription drug plans, and eight
advantage plans. Now we get to pick one of each

(17:24):
of those. If we're under original Medicare, we can choose
one Medicare supplement and one prescription drug plan. We call
that choice the three card system. You have your Medicare card,
you have your Medicare Supplement card, and you have your
prescription drug card. That's the three card system. Now the

(17:47):
alternative is the one card system, and that's the advantage plan.
The advantage plan covers with one card, it covers the
benefits of original Medicare, plus that covers a prescription plan.
Plus it provides some additional living benefits like benefits for dental, benefits,

(18:12):
for vision, benefits for hearing that original Medicare does not cover.
So there's tremendous benefit to being under the advantage plans.
And I encourage you that our meetings that are coming
up here next week, coming up here August twentieth and
August twenty second, that you can learn a tremendous amount

(18:35):
about the choices that you have with Medicare Again on Tuesday,
August twentieth, Greig talks about the basics of Medicare, and
then he focuses on the Medicare supplement plans and the
prescription drug plans that are available. So that's Tuesday, August twentieth.

(18:57):
Two days later, on Thursday August twenty second, Greg again
focuses on original Medicare, the basics of original Medicare, and
then focuses on the advantage plans, and in particular, what
we believe is the more competitive of the advantage plans,

(19:17):
and that is the AARP Medicare advantage Plan offered by
United Healthcare. You know, as a financial professional, I want
to conclude this week's program by saying something about the
stock market. You know, I talk about the stock market
all the time. Here, no person or no machine can

(19:39):
accurately predict what direction the markets will go in the future.
Volatility remains not today's market. And this recording is on Thursday,
on Thursday August sixteenth, Now it'll be played on Saturday,
August eighteenth, but I want emphasize with you that the

(20:04):
stock market remains extremely volatile. So I encourage you to
adviide by our safe money harbor and what is our
safe money harbor. It is simply a formula in which
the formula works like this. You subtract your age from

(20:25):
the number one hundred age from the number one hundred,
and the result of that gives a percentage, and that
percentage reflects the percentage of the percentage of assets that
should be in safe money harbor versus the percentage of

(20:46):
assets that should be in the stock market or mutual
fund market. Stock market and mutual fund markets are volatile.
They go up, they go down all the time with
the advantage plans you share in the safety of the
stock market. So encourage you to give me a call

(21:08):
and let's talk about your situation or send me an email.
My phone number is five six three three three two
twenty two hundred. You can go to my website go
to www Ticshillig dot com and scroll over to the
contact icon for my email address and send me an

(21:28):
email you'd like to tell me about your situation and
the recommendations we would make regarding medicare. I know you
get solicited by different companies, and there's a tremendous number
of companies out there, So I encourage you to take
a look at that and participate in our virtual meetias.

(21:50):
Remember you stay in the privacy of your own home
and use your own computer equipment. Call Craig at five
sixty three three three two twenty two hundred and he'll
give you instructions on how to participate in these virtual
community meetings. And I'm sure by the time those meetings
are concluded you will say the same thing that you

(22:11):
will say now, I understand the choices I have with medicare,
so boy, take care of the benefits that are available
through the advantage plans. So give us a call and
participate in those meetings so that you can say that
you understand the many choices you have with medicare so

(22:38):
as a financial professional. As a financial professional, I know
now is the time to take gains off the table.
So if you are on the fence about how to
do that and what to do in this very bolatical market,
I am here on safe money for the last fifteen
or sixteen years because market polatility and recent market voluntility

(23:04):
that we've seen this past week, as many retirees and
pre retirees concerned about how their accounts and future financial
stability may be affected, I don't want to be the
sky is falling type of messenger, because truthfully, I don't
know what the stock market will or will not do.
What I do know is that our index annuities provide

(23:30):
a safe money harbor in that the value of your
account will share in the growth of the stock market
if there is growth in the stock market. But if
there is a decline in the market, your account value
will not share in that decline. Your account value will

(23:53):
stay the same as it was before. So our index
annuities share in the growth of the market, they do
not share any market downturns. So that's why I can
save here on safe money. That my clients have not
lost money. I can say that because of the participation
of those clients in those index annuities. That's about all

(24:18):
I have for you this morning. Have a great, great weekend.
Don't forget about our community meetings, our virtual community meetings
next week on Tuesday August twentieth and Thursday August twenty second.
Be sure you give us a call to receive instructions
on how to participate in those meetings. Five po't sixty

(24:39):
three three three two twenty two hundred. Have a great,
great weekend, Looking forward to talking with you again next week.
Good day,