Rob West: Medicare may be one of the most important and confusing financial decisions you make in retirement. Hi, I'm Rob West. From enrollment deadlines and late penalties to Medigap, Medicare Advantage, and income-based premiums, the choices can feel overwhelming. Eddie Holland joins us today to help you understand your options and make decisions that support wise, faithful stewardship. And then it's on to your calls at 800-525-7000. That's 800-525-7000. This is Faith & Finance on American Family Radio. Biblical wisdom for your financial decisions.
When it comes to cutting through the confusion surrounding Medicare, few are better equipped than Eddie Holland. He's a senior private wealth advisor and partner at Blue Trust, as well as a Certified Financial Planner, he's a CPA, he's a Certified Kingdom Advisor, and he's in studio today. He's going to stick around for the entire hour. So this is your chance if you've got questions around Medicare specifically—maybe evaluating your choices around Medicare Advantage or Medigap, anything related to when to file and when to start paying that premium, what might affect that premium. Eddie's your guide today. We're taking those calls. In fact, we will prioritize those calls on Medicare, and we might even dip into some Social Security as well. 800-525-7000 is the number to call. Medicare-related questions today at 800-525-7000. Eddie, great to have you here.
Eddie Holland: Thank you, Rob. Always good to be here.
Rob West: Eddie, let's begin with the basics. Medicare has several different paths: A, B, C, and D. So why don't we cover each one?
Eddie Holland: Yeah, I've heard it called the alphabet soup, and I think that's pretty spot-on, Rob. So Part A is going to be hospital insurance. Think things like hospital, inpatient stays, skilled nursing, hospice. You may hear people say that it's free. I would say it's delayed; it's something that people have paid into their entire working career. So there's not a premium for it, so it's a premium-free coverage if you or your spouse logged 40-plus work credits. So if you paid into the system and have 40 or more work credits, then you're going to have Part A premium-free.
Rob West: All right.
Eddie Holland: Now, Part B is going to be medical insurance, so think doctors' visits, lab work, outpatient surgery. There are standard premiums that apply, and those premiums are based on your income. So if your income is over certain thresholds, then you're going to pay a higher premium for that type of coverage.
Part D is prescription drug. They actually made that one easy. D stands for drug, so prescription drugs. That's a stand-alone that normally pairs with Parts A and B, which sometimes may be called original Medicare. And if you buy an Advantage plan, sometimes the Part D prescription drug plans are baked into the Advantage plans.
Now, you'll notice that I skipped Part C. What is Part C? Well, that's Medicare Advantage. That's a private all-in-one plan that bundles A and B, and often Part D, and a lot of times it will throw in extras like dental or vision. Now, if you opt out of Medicare Advantage and if you go the A and B route, there are gaps: copays, deductibles, out-of-pocket expenses. Medicare Supplement, or what you referred to earlier as Medigap policies—
Rob West: Yeah.
Eddie Holland: —fill in those gaps. They fill in varying degrees of original Medicare gaps, and there's 10 different private supplemental plans that are available.
Rob West: Ah, that's really helpful—a great overview. And again, we will begin taking your questions on this topic today in just a bit. So if you've got a question on Medicare, how it relates to you, whether or not you need to go ahead and file—maybe you're still working as you're approaching 65, you're wondering whether Medigap or Medicare Advantage is right for you—Eddie's here today to take those questions, and we will prioritize those questions. 800-525-7000. That's 800-525-7000.
Eddie, timing can be one of the most confusing parts of Medicare. When should someone enroll to avoid penalties?
Eddie Holland: There's various periods that people are eligible to enroll. Most people are probably familiar with what's called the IEP, the Initial Enrollment Period. That's a seven-month window that begins three months prior to someone's 65th birthday, the month of their 65th birthday, and three months after their 65th birthday.
Now, if you or your spouse are still working and you have active, creditable employer coverage at a company with 20 or more employees, you can delay Parts A and B with no penalty. If you choose to delay, then there's something called a Special Enrollment Period, or SEP, which is eight months after the employer coverage ends. So employer coverage ends, then you have eight months to potentially be eligible to enroll in Medicare. And if you miss both of those, General Enrollment is January 1st through March 31st of every year, but keep in mind the coverage applies or goes into effect July 1st, so there may be late filing penalties.
Rob West: Okay. Yeah, really helpful. So we're just giving you a primer here today on Medicare. We're going to turn to your questions in the next segment. We'll also talk a bit more about how Medicare works alongside current employers, and what is IRMAA? Eddie Holland here today talking Medicare. We'll be right back.
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Rob West: Great to have you with us today on Faith & Finance here on American Family Radio. I'm Rob West. With me today, my friend Eddie Holland. Eddie is a senior private wealth advisor and partner at Blue Trust. He's a CFP, a CPA, and a Certified Kingdom Advisor. He's our go-to guy on the topic of Social Security and today, specifically, Medicare. We're trying to cut through some of the noise and confusion, make it simple for you, and answer your questions. He will stick around for the entire hour, so if you have a question on a Medicare-related topic—Medicare Advantage, Medigap, when to enroll, what about IRMAA, the additional premium—we'll talk about that in a moment. But maybe you have a question regarding your situation. Eddie's here to answer those today: 800-525-7000. That's 800-525-7000. We'll head to the phones here in just a moment. But Eddie, tell us how Medicare works alongside an employer, a current employer.
Eddie Holland: So Rob, in companies with 20 or more workers, the group plan pays first, and you can postpone Part B to avoid its premium. For employees—I'm sorry, for employers that have less than 20 employees, Medicare pays first. So if you skip Part B, that could potentially leave some gaps in coverage. Many folks will still grab the zero-part—or I'm sorry, the zero-premium Part A coverage while leaning on the group plan for everything else. There is one caveat: if a person is contributing into a Health Savings Account, or an HSA, you're not eligible to make HSA contributions while you're enrolled in Medicare Part A. Most people—or some people aren't aware—you can actually opt out of Part A if you're covered by a group plan. Most people will tell you there's no reason to opt out. The one reason, one of the reasons I'm aware of, is that if you're contributing into a Health Savings Account. So we've actually had some clients that have said, "Hey, I'm not going to enroll in Medicare Part A because I want to continue to contribute into the HSA."
Rob West: Yeah, makes sense. So certainly don't want to do anything that disqualifies you because the HSA, I know you and I have talked about this before, it's really one of the most powerful, kind of triple-tax-advantaged retirement vehicles out there, right?
Eddie Holland: It is, yeah. I'm a huge proponent of HSAs when they make sense, so you're exactly right. If you can take advantage, you want to.
Rob West: All right, we've got lines open, room for you today. Eddie Holland here taking your calls on Medicare: 800-525-7000. Call right now. Let's go to Arkansas. Terry, you'll be first up. Go ahead, sir.
Terry: Oh, good morning, gentlemen. How are things treating y'all?
Rob West: Doing real well, Terry. Thanks for your call.
Terry: Excellent. Thank you very much for taking it. Let's see here, try to make a long story short. I went out on disability, I believe, in '19, and in '21 was automatically—I mean, I don't remember filling out any paperwork, but automatically got the Part A. Now, the family still has private insurance that we're all covered under that obviously we pay for through my wife's work. I was just wondering, a person that is on disability that only has Part A, what guidance would you give them? Would you suggest to go ahead and get the Part B, because I do have a lot of doctor's appointments. And just, you know, things to think about, actions that I should take now, processes—those would be my questions.
Eddie Holland: Yeah, great question, Terry. So I'm assuming that your wife works for a company that has 20 or more employees, is that correct?
Terry: Yes, sir.
Eddie Holland: Okay. So the group plan that she has through her employer that you're covered under, that's going to be primary. So Medicare—I'm sorry, the group plan is going to cover most of the bills. If you sign up for Medicare Part B, which is basically doctor's visit coverage, it's going to serve in a supplemental capacity. So really it boils down to, from a premium standpoint, are you going to get more bang for your buck by enrolling in Part B, paying the monthly premium of basically $203 per month, or are you better off staying on the group plan and then paying the out-of-pocket coinsurance, deductibles, copays, those types of things? The nice thing is that you're still covered under her plan, so when she retires, you'll be able to enroll under that Special Enrollment Period that we talked about a few minutes ago. You won't be subject to a late enrollment penalty because you didn't apply to Medicare when you turned 65. I'm assuming, how old are you now?
Terry: 51, sir.
Eddie Holland: Okay. So yeah, you've got quite a while before you've got the age 65 enrollment. So in your case, I think to answer your question specifically, if the Part B is going to cover more out-of-pocket than what you would pay in premiums, I think you would be benefited by enrolling in Part B; otherwise, I'm not so sure you would.
Rob West: Terry, is that helpful?
Terry: Yes, sir. Yes, sir, I do appreciate it. And there wouldn't be any penalties, say we wanted to change things and my wife wanted to, you know, we just put her and my son on the group plan, and I go strictly to Medicare, if we find it cheaper, more efficient? The cost is right at that $200 mark, or like you said earlier, would they go back just to my personal income, or would it be the family income?
Eddie Holland: So if you're married filing jointly, Medicare's going to look at your married filing jointly income. So if your modified adjusted gross income is $218,000 or less, you're going to be subject to the base Medicare Part B premium, which is $202.90. So in your case, if she switched employers, or you decided, "Hey, I want to go on Part B," you have the ability to do that. Your disability has occurred, you've been on disability for at least 24 months, so you'd be automatically enrolled in Medicare Parts A and B if you chose to do that. You've opted out of Part B up to this point, but because you meet the certain thresholds, you're eligible to enroll in Part B at any point in time now.
Terry: Okay, great. There's no penalty for that?
Eddie Holland: No, there's no penalty for that, not in your current situation.
Rob West: Hey Terry, we appreciate your call, sir, and hope that was helpful to you today. Call anytime if we can be of further help. God bless you. We're going to continue to take your calls today. Eddie Holland here. Eddie's with Blue Trust. He's a partner, he's a senior wealth advisor. You can learn more at bluetrust.com. He's our go-to guy on Medicare and Social Security. He joins us regularly, and we'll continue taking your questions throughout the broadcast today, specifically on Medicare. In just a moment, after the break, we'll head to Alabama. Lori's got a question on HSAs and how they relate to someone who is on Medicare A currently. Eddie, before we hit this break, one of the common points of confusion is around timing: when should someone enroll in Medicare to avoid penalties? We've got just a minute left, give us a rundown of that.
Eddie Holland: Yeah, so as we mentioned a few minutes ago, there's really three: there's the Initial Enrollment Period, the Special Enrollment Period, and then the General Enrollment Period. Let me mention one thing that we talked about, I failed to mention it, let me just circle back. We talked about Medicare, you being on a current employer plan. One thing I failed to mention is that for drug coverage, you want to make sure that your HR can confirm that you've had creditable drug coverage. Because if you've opted out of that Initial Enrollment Period, you're continuing to work past age 65, you're on an employer plan that qualifies, during the Special Enrollment Period, you can potentially enroll 8 months after your employer's coverage ends, but you want to make sure that your Part D coverage is still applicable and creditable. HR will be able to confirm if your current employer health plan drug coverage is considered creditable.
Rob West: That's great. Yeah, a really important consideration there. All right folks, we're talking Medicare. The lines are filling up. Eddie's here, we're going to dive into more of your questions right after this break. This is Faith & Finance on American Family Radio. I'm Rob West, helping you apply God's wisdom to your financial decisions. Back with more right after this.
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Rob West: You know, Medicare may be complicated, but careful planning can help you avoid costly penalties, choose coverage that fits your needs, and steward your resources with greater wisdom and confidence. And that's why our focus today is trying to simplify Medicare. Good luck, you might say. Well, we brought in the expert, Eddie Holland. He's with Blue Trust. He's a partner, he's a senior wealth advisor, he joins us regularly on Medicare and Social Security-related topics, and we're taking your questions today. Nearly all the lines full, but still room for one or two more at 800-525-7000. Lori's calling from Alabama. Lori, thanks for your patience. Go ahead.
Lori: Thank you. Thank you. I'm currently enrolled in Medicare Part A when I turned 65. I'm still working, so I'm covered under my work's health insurance. I'm retiring at the end of the year, and I will then go on to my husband's health insurance, but he currently does contribute to an HSA. So how will me being on Medicare Part A affect him being able to contribute to his HSA?
Eddie Holland: So, Lori, the good news is that it will not affect him. Medicare looks at each individual. So because you're on Medicare Part A, you're ineligible to contribute to an HSA. But for your husband, as long as he does not enroll in Medicare Part A, he would be eligible to contribute to an HSA. So just because you're going to go on his plan as either a couple or a family, it will not preclude him from being able to contribute into an HSA, as long as he's not enrolled in any type of Medicare.
Lori: Right, and he's not. Well, thank you so much for taking my call and giving me that answer. That's wonderful.
Rob West: Thank you, Lori. We appreciate your call today. To Arkansas, Diane. How can we help?
Diane: So, I'm 64—currently 64—and I'm planning to retire in December. I'll also turn 65 in December. So I'm a little confused. I was ready to enroll three months beforehand, and now I don't know if I need to enroll the month I turn 65, which will be December, and then say goodbye to the federal government. So I do have 20-plus employees that work with my company.
Eddie Holland: Okay. Yeah, that's a great question, Diane, and I probably should have been a little clearer on that. So if you enroll in during the initial enrollment period and it's prior to your 65th birthday—so in your case, let's assume that you enroll starting in September—Medicare will not make that effective date until the month that you turn 65. So if you enroll anytime prior to your 65th birthday, you're going to get coverage effective the month of your 65th birthday. So in your case, if you turn 65 in December, you'll have Medicare coverage starting December the 1st for yourself.
Diane: But I need to enroll in that, don't I?
Eddie Holland: Yes, I would. I would go ahead and, during the initial enrollment period which just opened up this month, I would go ahead and enroll, and Medicare will make it effective December 1st for you.
Diane: Okay. Okay, cool. That that really explains a lot. Also, the previous caller was saying something about your spouse being on Medicare. My husband is disabled and is on Medicare. I never heard of two people being under one plan. That's a new thing on me.
Eddie Holland: Yeah. What she was referencing was an employer plan. Her husband was continuing to work and she was retiring and planning to go on his employer plan, and she was wanting to know about the HSA rules. In your case, if you're enrolling in Medicare and your husband's already enrolled in Medicare, you guys are still on standalone individual Medicare coverage. There will not be any overlap or cross-pollination.
Diane: Gotcha. One other thing: when I retire, I have the option of keeping my federal insurance, which I'll pay the same amount I pay right now. And I'm planning on doing that as my secondary—Medicare would be my first and then my Blue Cross Blue Shield, if I stay with that, would be my secondary. Do you advise that, or would you advise just strictly going with Medicare?
Eddie Holland: No, I think the federal government plan is going to act as that Medigap plan that's going to fill in some of the out-of-pocket exposure that Medicare Part A and B leave. So based on what I know and what you've described, it does sound prudent to consider continuing that coverage as more of a Medigap or supplement plan to Medicare Parts A and B.
Diane: Okay, so Medigap instead of—go ahead, Rob.
Rob West: No, no, go right ahead. Finish your thought.
Diane: Okay, I was going to say, so don't continue my federal insurance, but take up the Medigap?
Eddie Holland: No, I would compare. Your federal insurance may actually be a more robust or better coverage than a Medigap. So I would meet with a Medicare agent that can compare the coverage that you would have through the federal insurance compared to a standalone Medigap. And based on my experience, the federal government plan's going to be a little more robust. So I strongly encourage you to at least consider continuing that.
Rob West: Diane, we appreciate your call today. Thanks for being on the program. Call anytime. Just one line open: 800-525-7000. Eddie, about a minute and a half before our next break, let's talk about married couples for a moment. When one spouse becomes eligible for Medicare before the other, what coverage options does the younger spouse have?
Eddie Holland: If the older spouse keeps working, Rob, then the employer plan may still offer coverage for both the older spouse and the younger spouse. There's actually, in some of my clients' situations, even if the older spouse retires, some employer plans offer coverage for younger spouses. So that's something that they would need to confirm with HR.
COBRA, as you're aware, can stretch up to 36 months for the younger spouse. It's pricey, it's not considered creditable coverage, but if they're younger than 65, that's an option.
And then Healthcare.gov has a lot of marketplace plans available, which can potentially bridge the gap between current age and age 65. The benefit of that is there may be some subsidies for that.
And you know you can't have me on without adding a little bit of financial planning topics to this. It's important to budget for a few years of potentially higher premiums until spouse number two hits 65. You just don't want any unexpected curveballs in retirement.
Rob West: Yeah, no doubt about it. I think the COBRA—that's a big idea there because given that it's not creditable coverage, you don't have the same waiver on the penalties, is that right?
Eddie Holland: That is correct, yes.
Rob West: Yeah, so be careful there. Excellent stuff. Well, I tell you, every line is full, which just means this is an important topic. There's a lot of confusion, and Eddie's going to break it down for you. We've still got plenty of time. We'll get to as many calls as we can, and we'll do that right after the break. Headed to Arkansas and Michigan, and Kentucky and Georgia, and perhaps your state, as we tackle these questions. Eddie Holland here today from Blue Trust. You can learn more at bluetrust.com. Back with much more right after this. Stick around.
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Rob West: I'm so glad you're with us today on Faith & Finance here on American Family Radio. You know, Medicare, our topic today, may seem like a purely practical topic. It's filled with enrollment periods and coverage choices and premiums and deductibles. But even decisions like these can become opportunities for faithful stewardship. Scripture reminds us that wise planning has value, not because we control the future, but because we're called to manage well what God has entrusted to us. And as we grow older, healthcare becomes a larger part of that responsibility, and we're trying to cut through some of the confusion today. Eddie Holland is here. Eddie's a partner and senior wealth—senior private wealth advisor with Blue Trust. He's a CFP, a CPA, and a Certified Kingdom Advisor, and he joins us regularly on these topics. Uh, all the lines full! Lots of questions here, so we'll get to as many as we can. Uh, let's head to Arkansas. Rick, go ahead.
Rick: Yes, uh, thank you for taking my call. Um, I've uh—I'm 74 years old. I have uh a Medicare—of course, I'm on Medicare, and uh I have a policy outside of Medicare, which would be Blue Cross Blue Shield. So, my question is, if—and it's getting high. The the the premiums keep going up and up, and and that's understandable. Do I—if I go to a share program, a Christian share-type insurance program...
Rob West: Yeah.
Rick: ...uh and see that that works well, that I could stay there. But if I go there and it doesn't work well, what are the ramifications of leaving Blue Cross Blue Shield, or any company, and trying to go back to them?
Rob West: Well, I'll get uh Eddie to comment on that part. Let me just say, you know, our long-time underwriter here at Faith & Finance is Christian Healthcare Ministries. They're the—they're the biggest and oldest in this space of health sharing ministries. Uh, CHM, you can find out more at faithfi.com/chm. They do have something called SeniorShare. Uh, it's currently—excuse me. Sorry. Uh, currently listed about $120 a month per person. And, you know, it's not insurance, of course, but it works alongside Medicare where Medicare uh comes first and then CHM kicks in after that with eligible remaining expenses. So, again, uh you can learn more at faithfi.com/chm. But, Eddie, to his point about, you know, if for some reason that didn't work out and he needed to go back, what would he need to know?
Eddie Holland: Yeah, so keep in mind, Rob, when you make changes to your Medigap plans, if you exit those, you could potentially be subject to underwriting at a future point. And so, uh if if you develop a chronic health issue, which normally happens, right? When you're healthy, you don't need insurance; when you get sick, that's when you need it.
Rob West: Yeah.
Eddie Holland: So, in that situation, if you've developed a chronic illness and then you apply for another Medigap plan or to go back on, then you would potentially be subject to medical underwriting, and you may not be eligible to uh purchase that policy. So, that's certainly a risk.
Rob West: Hmm. Rick, is that helpful?
Rick: Yep, it is. That's that's kind of what I thought might be the case, and uh uh may have to just buckle up and keep paying what I'm paying. Well, thank you for taking my call.
Rob West: Yes, sir. Call anytime. Thanks for being on the program.
Eddie Holland: Yeah, let me just mention, sorry to jump in, uh each state is different. So, I'm make—making general kind of blanket statements, but I would encourage all of our listeners to to make sure that you speak with a Medicare agent in your state that's licensed, licensed and reputable and knowledgeable, because each state does have some nuances around some of the things like medical underwriting.
Rob West: Yeah, very good. Rick, thanks for your call. Let's go to Michigan. Carol, go ahead.
Carol: Hi, um thank you for taking my call. Um, my husband works at Amazon, and he'll be 65 in a in two more years, I believe. Um, and I just was wondering, if he turns down um Medicare, and he decides to stay with his health insurance, which is actually really good insurance, what—and well, then at at 67 he would retire and then he would have to go on Medicare—what form or what would he need to fill out in order to get that, I guess, proof of creditable coverage? And also, is it just Part D he needs proof of the um the—what is it? Uh, now I lost lost my train of thought here. Um, he just—you're saying he only needs creditable coverage for Part D for some reason. And I just I wonder how to get that creditable coverage, if there are forms for Medicare and for Amazon, and how to go about getting the exact proof of that creditable coverage.
Eddie Holland: Thanks for that question, Carol. So, no, he would actually need creditable coverage for Parts A, B, and D, so he would need creditable coverage for all of those. Amazon would provide him—his HR department would provide him a letter confirming that he has been on a group health plan from his 65th birthday up until the date of his retirement. That will be submitted along with his Medicare application to Medicare, and they will accept that as proof of creditable coverage. So, it would be for Parts A, B, and D, not just Part D.
Rob West: Hmm. Does that make sense, Carol?
Carol: It does. Also, um Amazon's HR department is overseas, and it's really hard to get ahold of them and have things explained. Is there—I mean, is this something that we have to call them for, or do they just automatically send it out, this letter, you know, about his 65th birthday and on?
Eddie Holland: As big as Amazon is, I feel fairly confident that their—this is a very uh basic, kind of rudimentary process for them, so I feel very confident that they've done this for many, many employees. So, I don't anticipate that being a problem for your husband.
Carol: Okay. All right, well, thanks.
Rob West: Absolutely, Carol. Thanks for your call today. We appreciate you being on the program. Uh, we've got one line open. Eddie Holland's here talking Medicare today, 800-525-7000. Out to Mississippi. Penny, go ahead.
Penny: Oh, hello. Hey, can you hear me?
Rob West: Yes, ma'am. Go right ahead.
Penny: Hey, so I have—I'm 65 and—no, I'm sorry, I'm 75. And um I have, you know, my Medicare, and then I have the supplemental insurance, Colonial Penn. And it's like $416 a month for the Colonial Penn. So, I mean, it seems like—I'm real healthy, hardly ever use any of it, and I've talked to people who have Medicare Advantage, and they love it, and they don't pay anything. So, I'm thinking about doing that. What do you think about that?
Eddie Holland: Yeah, Penny, you've hit on one of the hotter topics in Medicare planning right now, and and it's the Medicare Advantage versus the Medigap. Just for everybody's benefit, all of our listeners, Medigap offers the widest provider choice, so it's the most robust coverage. As you mentioned, it does have predictable cost of monthly premiums. You do have to have a separate Part D plan. The premiums are normally higher, but the coverage is normally richer. You contrast that with Advantage plans—oftentimes Advantage plans have low or zero premiums—monthly premiums—and sometimes they throw in additional benefits like vision and dental. However, the networks could be a little bit uh more confined, a little more restricted, and there are some pre-approvals that could potentially apply. Now, most of the time, Penny, what happens is you get a lower premium on the outset—so, the monthly premium is zero or very low—but there are potential out-of-pocket costs on the back end. So, there's annual out-of-pocket caps. If you're in-network, it's about $9,200—$9,250 in 2026. If we're talking about in and out-of-work—in and out-of-network combined, it's almost $14,000—$13,900 in 2026. So, what you save on the outset upfront, you could potentially expose yourself on the back end. If you're healthy and don't need much medical attention, then it could potentially be a better option for you from a Medicare Advantage standpoint. But if you do have some chronic issues or develop some of those, there could potentially be some much higher out-of-pocket costs on the back end.
Rob West: Hmm. Very good. Penny, thanks for your call today. It's a great question, and I know a lot of folks wondering about that: is Medigap or Medicare Advantage better for me? And it really comes down to Eddie's point on your priorities: Do you want more access? Do you want lower costs and and copays? And uh what about premiums? What about your medical condition and underwriting? There's just a lot of factors that can ultimately help you figure out what the best option is for you. All right, a quick break, and then back with our final segment and your calls. Eddie Holland's here. Stay with us.
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Rob West: Thanks for joining us today on Faith & Finance here on American Family Radio. I'm Rob West. Eddie Holland's here today. We're talking Medicare, taking your questions, and in just a minute, we'll talk about something called IRMAA. That's the income-related monthly adjustment to your Medicare, depending on your income. Doesn't kick in for two years, but there are real implications to things like large distributions from IRAs, or you working, and—or perhaps even an inheritance. We'll talk about whether that factors into this and whether that could result in hundreds of dollars of increase in your Medicare premium a couple of years later. What is it? Well, Eddie'll shed some light on it in just a moment. But first, let's head to Kentucky. Melinda, thanks for your patience. Go ahead.
Melinda: You know, I appreciate your show, and, um, thank you for taking my call. First of all, I worked almost 30 years and then I had to go on disability, so I automatically got the A and B card. But then I took out an Advantage plan, but somebody said the Advantage plan was not a good to have. So, I was wondering if I should drop that and just do the A and B? I have cancer now, so I have a lot of scans and stuff like that that I have to do. So, I just set know which would be the best.
Eddie Holland: Melinda, my best piece of advice would be to meet with a local Medicare agent that's knowledgeable and understands most of the rules. I know with an Advantage plan, it's fairly easy to get in, and you can kind of hop in and out of various Advantage plans during the open enrollment every year. If you wanted to move into a more robust coverage through a Medigap plan, most of those have underwriting restrictions. So, you would have to be approved by the company before you actually can go on Medigap. So, my recommendation would be to, uh, certainly meet with an agent and see if there are any Medigap policies that are available. My guess is they're going to have better coverage, so you'll pay a monthly premium up front, but they'll have better, better back-end coverage. But because of your medical condition in your recent cancer diagnosis, you may not be eligible for Medigap. So, if that's the case, if it's purely just A and B versus an Advantage plan, then the, uh, Medicare agent's going to be able to—to really look at your specific state situation and tell you which option's going to be better.
Rob West: Melinda, is that helpful?
Melinda: Yes, it is, and I appreciate you taking my call. Thank you very much.
Rob West: Absolutely. Sure, thanks for your call today. Uh, let's go out to Texas. Beebee, go ahead.
Bebe: Hi. Um, I'm calling because I want to know what to purchase so that if I have to go to the hospital or run some expensive tests, like MRI or something, I don't want to have to pay anything at all. My mom had—I don't know what she had, but she's passed, but when she went to the hospital and came out, she didn't have any bills. It was—I know she had Blue Cross. I saw one of those bills, but I don't know what else she had and she passed, and I couldn't ask her what she had that she will have no bills whenever, you know, she needs something done or whatever.
Eddie Holland: Yeah, Beebee. My guess is that she probably had what was a Plan F. That was the most comprehensive Medigap plan available. That's no longer available to anyone that turns 65 or older after July—on or after June—January 1st, 2020. So, in your situation, you're probably not eligible for F. The most robust Medigap plan right now is a Plan G, as in George. It pays for every single gap with the exception of the Part D—I'm sorry, Part B deductible, which in 2026 is $283. So, you pay a monthly premium, you purchase the Plan G, you pay $283 out of pocket, and then it covers everything else. So, it fills in all of the gaps with the exception of that Part B deductible. That's going to be your most robust plan option.
Bebe: Uh, okay. Is this—is this better than buying one of—one of those Christian things to fill in the gap?
Rob West: Yeah, so what you're talking about there is, uh, something like Senior Share from a Christian health cost sharing ministry. What's great about that is just the cost. You know, a lot of people are seeing the cost of these, uh, Medicare Advantage and Medigap options and saying, "That's just not an option for me." And so, to be able to get that, uh, additional support—it's not insurance, but additional help with medical expenses at something like $119 per month for Senior Share, where it kicks in to cover some of the expenses, the remaining eligible expenses beyond Medicare, is just a great option. So, I would certainly look at it. We have a lot of listeners who love it, and it fits their budget. And, uh, you can check it out by heading to faithfi.com/chm. That's faithfi.com/chm. Uh, Beebee, thanks for your call today. We appreciate you being on the program. Uh, let's head, uh, down to Georgia. Cynthia, go ahead.
Cynthia: Good morning. How are y'all?
Rob West: Doing great. Thanks for your call today.
Cynthia: Thank you for taking my call. I'm retired military, so I'm trying to understand what I need to do. I'm not eligible for Medicare until I'm 65, and I'm almost there. I also have my military retirement pay, so I have TRICARE For Life, or will. Do I need to purchase a D or a C because of those?
Eddie Holland: So, Cynthia, the—excuse me—the nice thing about federal retirees is Part B is, uh, potentially your choice. Uh, federal retirees are offered the same Medicare benefits as all other retirees. So, you could enroll in Part B during your initial enrollment period as you approach age 65. If you don't enroll in Part B when you're first eligible, then you will be subject potentially to a late enrollment period. And the same would apply for Part D. So, in your case, what I've—my personal experience when I've served clients who have worked for the federal government is they've enrolled in Part B—Part A, B, and D—and they've kept their TRICARE as a supplemental plan. It's not required, but it probably offers you the most robust coverage.
Rob West: Is that helpful, Cynthia?
Cynthia: I was hoping that—I'm sorry.
Rob West: Is that helpful?
Cynthia: Oh, yeah. Yeah, it helps me a lot. Thank you, all.
Rob West: Absolutely. Thanks for your call today. Uh, Eddie, I want to take just a moment and talk about IRMAA. You know, Medicare premiums can be confusing, especially when income-based surcharges come into play. So, uh, let's take just a moment here and talk about what is IRMAA and how does it affect someone who pays?
Eddie Holland: Well, as you stated earlier, Rob, it's income-related monthly adjustment amount. That's what the IRMAA acronym stands for. As we mentioned earlier, Parts B and D have a base premium. IRMAA is simply a surcharge added to the base premium if your modified adjusted gross income is above certain thresholds. In 2026, that threshold for a single taxpayer is 109,000; for a married filing joint, it's 218,000. Now, you alluded to this a few minutes ago. It's based on your most recent tax return, which in a lot of ways is—the most recent tax return is two years back. So, in 2026, the most recent tax return on file at the beginning of 2026 was the 2024 tax return. So, the 2024 modified adjusted gross income determined or decided 2026 premiums. Now, there are qualifying or life-changing events that you can appeal your IRMAA. So, we've helped a lot of clients navigate this IRMAA appeal process. Let's say you've retired. Let's say you made $200,000—let's say you made $300,000 before you retired. Your most recent tax return is going to show you're over the IRMAA threshold. Well, you can file Form SSA-44—Form SSA-44. You specify, "I have retired. Here's my retirement date." You submit that to Medicare through Social Security, and then they will render a decision. Here's what I like to do. I like to get a letter from your HR department stating, "I have retired on this specific date." It's not required, but I found that's been very successful for clients that have retired. They've got proof that they've retired. They're projecting. Now, there is a true-up. You can't go on and say, "Hey, my income's going to be less going forward." Social Security will actually monitor this, and every year, if your income is higher than what you estimated it to be, they will actually capture the—the premium difference. So, in your case, if you said, "Hey, I'm—I'm appealing it. My income's going to be lower," and then your income was actually higher, Medicare will send you a letter saying, "Hey, you—you lied to us," essentially, "and you're going to have to pay back premiums." They either take that through your Social Security check, or you stroke a check and pay that premium. So, it's—it's very important to understand that IRMAA not only affects, as you said, income, uh, from employment, but it also affects IRA distributions and Roth conversions. We help a lot of clients through Roth conversions. Just keep in mind, because it's going to look back two years, if you did a Roth conversion at 63 or 64, that's something that—that's not a life-changing event. You can't appeal that. So, if you've done Roth conversions, you may be subject to a higher Medicare premium for a couple of years. Just make sure that that Roth conversion was worth it.
Rob West: Yeah, that makes sense. Because a lot of people use those years between retirement and full retirement age on Social Security to get as much into Roth as possible, right?
Eddie Holland: That is correct, yes. And you just want to make sure that—we're not saying that Roths aren't important. It's just you want to make sure that you understand some of the unintended consequences of that Roth conversion.
Rob West: What about inheritance?
Eddie Holland: So, an inheritance, if you receive an inheritance and it is—uh, it generates additional income. So, let's say that you receive a—an IRA, inherited IRA. That's not going to be a qualifying event. So, in your—in that case, if you have, "Hey, I inherited a million-dollar IRA from my mom, I've got to take $100,000 out over the next 10 years," that additional income is going to be subject to the IRMAA threshold, so you'll have to be, uh, probably paying a higher premium.
Rob West: But if it's non-qualified, you inherit a house or just a stock portfolio, that's, uh—or cash, that's not going to affect your IRMAA, right?
Eddie Holland: Correct. Yes, you get the step-up in basis. If you turn around and sell that, if there's no capital gains—if you do sell it, if you receive a house, it grows in value over the next year, then you could potentially pay it. But in general, no, an inheritance is not going to affect that.
Rob West: Excellent. Eddie, so appreciate you, my friend. Uh, your time, your commitment to being here to help us, uh, make sense out of all of this, and, uh, we're really grateful.
Eddie Holland: It's my pleasure. Thanks for having me.
Rob West: All right. That's Eddie Holland. Eddie is a senior private wealth advisor and partner at Blue Trust. If you'd like to learn more about Blue Trust, you can head to bluetrust.com. Blue as in Ron Blue, the founder of, uh, what was at the time, Ronald Blue & Company, now Blue Trust. And just an incredible organization. So many Certified Kingdom Advisors all through the organization. They have offices all over the country. And, uh, Eddie is somebody we just have so much respect for. He's, uh—just really wants to help God's people manage his money God's way. And, uh, he joins us regularly. We'll look forward to having him back real soon. Folks, that's going to do it for us. Big thanks to my team today: Taylor, and Devin, and Patty, and Aften, and everybody here at FaithFi that makes all of this possible. If you'd like to support our work, head to faithfi.com/give and consider becoming a partner today. Partners get every new resource and our magazine mailed to their door throughout the year. Faithfi.com/give. We'll see you tomorrow. Bye-bye.
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Rob West: Medicare may be one of the most important and confusing financial decisions you make in retirement. Hi, I'm Rob West. From enrollment deadlines and late penalties to Medigap, Medicare Advantage, and income-based premiums, the choices can feel overwhelming. Eddie Holland joins us today to help you understand your options and make decisions that support wise, faithful stewardship. And then it's on to your calls at 800-525-7000. That's 800-525-7000. This is Faith & Finance on American Family Radio. Biblical wisdom for your financial decisions.
When it comes to cutting through the confusion surrounding Medicare, few are better equipped than Eddie Holland. He's a senior private wealth advisor and partner at Blue Trust, as well as a Certified Financial Planner, he's a CPA, he's a Certified Kingdom Advisor, and he's in studio today. He's going to stick around for the entire hour. So this is your chance if you've got questions around Medicare specifically—maybe evaluating your choices around Medicare Advantage or Medigap, anything related to when to file and when to start paying that premium, what might affect that premium. Eddie's your guide today. We're taking those calls. In fact, we will prioritize those calls on Medicare, and we might even dip into some Social Security as well. 800-525-7000 is the number to call. Medicare-related questions today at 800-525-7000. Eddie, great to have you here.
Eddie Holland: Thank you, Rob. Always good to be here.
Rob West: Eddie, let's begin with the basics. Medicare has several different paths: A, B, C, and D. So why don't we cover each one?
Eddie Holland: Yeah, I've heard it called the alphabet soup, and I think that's pretty spot-on, Rob. So Part A is going to be hospital insurance. Think things like hospital, inpatient stays, skilled nursing, hospice. You may hear people say that it's free. I would say it's delayed; it's something that people have paid into their entire working career. So there's not a premium for it, so it's a premium-free coverage if you or your spouse logged 40-plus work credits. So if you paid into the system and have 40 or more work credits, then you're going to have Part A premium-free.
Rob West: All right.
Eddie Holland: Now, Part B is going to be medical insurance, so think doctors' visits, lab work, outpatient surgery. There are standard premiums that apply, and those premiums are based on your income. So if your income is over certain thresholds, then you're going to pay a higher premium for that type of coverage.
Part D is prescription drug. They actually made that one easy. D stands for drug, so prescription drugs. That's a stand-alone that normally pairs with Parts A and B, which sometimes may be called original Medicare. And if you buy an Advantage plan, sometimes the Part D prescription drug plans are baked into the Advantage plans.
Now, you'll notice that I skipped Part C. What is Part C? Well, that's Medicare Advantage. That's a private all-in-one plan that bundles A and B, and often Part D, and a lot of times it will throw in extras like dental or vision. Now, if you opt out of Medicare Advantage and if you go the A and B route, there are gaps: copays, deductibles, out-of-pocket expenses. Medicare Supplement, or what you referred to earlier as Medigap policies—
Rob West: Yeah.
Eddie Holland: —fill in those gaps. They fill in varying degrees of original Medicare gaps, and there's 10 different private supplemental plans that are available.
Rob West: Ah, that's really helpful—a great overview. And again, we will begin taking your questions on this topic today in just a bit. So if you've got a question on Medicare, how it relates to you, whether or not you need to go ahead and file—maybe you're still working as you're approaching 65, you're wondering whether Medigap or Medicare Advantage is right for you—Eddie's here today to take those questions, and we will prioritize those questions. 800-525-7000. That's 800-525-7000.
Eddie, timing can be one of the most confusing parts of Medicare. When should someone enroll to avoid penalties?
Eddie Holland: There's various periods that people are eligible to enroll. Most people are probably familiar with what's called the IEP, the Initial Enrollment Period. That's a seven-month window that begins three months prior to someone's 65th birthday, the month of their 65th birthday, and three months after their 65th birthday.
Now, if you or your spouse are still working and you have active, creditable employer coverage at a company with 20 or more employees, you can delay Parts A and B with no penalty. If you choose to delay, then there's something called a Special Enrollment Period, or SEP, which is eight months after the employer coverage ends. So employer coverage ends, then you have eight months to potentially be eligible to enroll in Medicare. And if you miss both of those, General Enrollment is January 1st through March 31st of every year, but keep in mind the coverage applies or goes into effect July 1st, so there may be late filing penalties.
Rob West: Okay. Yeah, really helpful. So we're just giving you a primer here today on Medicare. We're going to turn to your questions in the next segment. We'll also talk a bit more about how Medicare works alongside current employers, and what is IRMAA? Eddie Holland here today talking Medicare. We'll be right back.
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Rob West: Great to have you with us today on Faith & Finance here on American Family Radio. I'm Rob West. With me today, my friend Eddie Holland. Eddie is a senior private wealth advisor and partner at Blue Trust. He's a CFP, a CPA, and a Certified Kingdom Advisor. He's our go-to guy on the topic of Social Security and today, specifically, Medicare. We're trying to cut through some of the noise and confusion, make it simple for you, and answer your questions. He will stick around for the entire hour, so if you have a question on a Medicare-related topic—Medicare Advantage, Medigap, when to enroll, what about IRMAA, the additional premium—we'll talk about that in a moment. But maybe you have a question regarding your situation. Eddie's here to answer those today: 800-525-7000. That's 800-525-7000. We'll head to the phones here in just a moment. But Eddie, tell us how Medicare works alongside an employer, a current employer.
Eddie Holland: So Rob, in companies with 20 or more workers, the group plan pays first, and you can postpone Part B to avoid its premium. For employees—I'm sorry, for employers that have less than 20 employees, Medicare pays first. So if you skip Part B, that could potentially leave some gaps in coverage. Many folks will still grab the zero-part—or I'm sorry, the zero-premium Part A coverage while leaning on the group plan for everything else. There is one caveat: if a person is contributing into a Health Savings Account, or an HSA, you're not eligible to make HSA contributions while you're enrolled in Medicare Part A. Most people—or some people aren't aware—you can actually opt out of Part A if you're covered by a group plan. Most people will tell you there's no reason to opt out. The one reason, one of the reasons I'm aware of, is that if you're contributing into a Health Savings Account. So we've actually had some clients that have said, "Hey, I'm not going to enroll in Medicare Part A because I want to continue to contribute into the HSA."
Rob West: Yeah, makes sense. So certainly don't want to do anything that disqualifies you because the HSA, I know you and I have talked about this before, it's really one of the most powerful, kind of triple-tax-advantaged retirement vehicles out there, right?
Eddie Holland: It is, yeah. I'm a huge proponent of HSAs when they make sense, so you're exactly right. If you can take advantage, you want to.
Rob West: All right, we've got lines open, room for you today. Eddie Holland here taking your calls on Medicare: 800-525-7000. Call right now. Let's go to Arkansas. Terry, you'll be first up. Go ahead, sir.
Terry: Oh, good morning, gentlemen. How are things treating y'all?
Rob West: Doing real well, Terry. Thanks for your call.
Terry: Excellent. Thank you very much for taking it. Let's see here, try to make a long story short. I went out on disability, I believe, in '19, and in '21 was automatically—I mean, I don't remember filling out any paperwork, but automatically got the Part A. Now, the family still has private insurance that we're all covered under that obviously we pay for through my wife's work. I was just wondering, a person that is on disability that only has Part A, what guidance would you give them? Would you suggest to go ahead and get the Part B, because I do have a lot of doctor's appointments. And just, you know, things to think about, actions that I should take now, processes—those would be my questions.
Eddie Holland: Yeah, great question, Terry. So I'm assuming that your wife works for a company that has 20 or more employees, is that correct?
Terry: Yes, sir.
Eddie Holland: Okay. So the group plan that she has through her employer that you're covered under, that's going to be primary. So Medicare—I'm sorry, the group plan is going to cover most of the bills. If you sign up for Medicare Part B, which is basically doctor's visit coverage, it's going to serve in a supplemental capacity. So really it boils down to, from a premium standpoint, are you going to get more bang for your buck by enrolling in Part B, paying the monthly premium of basically $203 per month, or are you better off staying on the group plan and then paying the out-of-pocket coinsurance, deductibles, copays, those types of things? The nice thing is that you're still covered under her plan, so when she retires, you'll be able to enroll under that Special Enrollment Period that we talked about a few minutes ago. You won't be subject to a late enrollment penalty because you didn't apply to Medicare when you turned 65. I'm assuming, how old are you now?
Terry: 51, sir.
Eddie Holland: Okay. So yeah, you've got quite a while before you've got the age 65 enrollment. So in your case, I think to answer your question specifically, if the Part B is going to cover more out-of-pocket than what you would pay in premiums, I think you would be benefited by enrolling in Part B; otherwise, I'm not so sure you would.
Rob West: Terry, is that helpful?
Terry: Yes, sir. Yes, sir, I do appreciate it. And there wouldn't be any penalties, say we wanted to change things and my wife wanted to, you know, we just put her and my son on the group plan, and I go strictly to Medicare, if we find it cheaper, more efficient? The cost is right at that $200 mark, or like you said earlier, would they go back just to my personal income, or would it be the family income?
Eddie Holland: So if you're married filing jointly, Medicare's going to look at your married filing jointly income. So if your modified adjusted gross income is $218,000 or less, you're going to be subject to the base Medicare Part B premium, which is $202.90. So in your case, if she switched employers, or you decided, "Hey, I want to go on Part B," you have the ability to do that. Your disability has occurred, you've been on disability for at least 24 months, so you'd be automatically enrolled in Medicare Parts A and B if you chose to do that. You've opted out of Part B up to this point, but because you meet the certain thresholds, you're eligible to enroll in Part B at any point in time now.
Terry: Okay, great. There's no penalty for that?
Eddie Holland: No, there's no penalty for that, not in your current situation.
Rob West: Hey Terry, we appreciate your call, sir, and hope that was helpful to you today. Call anytime if we can be of further help. God bless you. We're going to continue to take your calls today. Eddie Holland here. Eddie's with Blue Trust. He's a partner, he's a senior wealth advisor. You can learn more at bluetrust.com. He's our go-to guy on Medicare and Social Security. He joins us regularly, and we'll continue taking your questions throughout the broadcast today, specifically on Medicare. In just a moment, after the break, we'll head to Alabama. Lori's got a question on HSAs and how they relate to someone who is on Medicare A currently. Eddie, before we hit this break, one of the common points of confusion is around timing: when should someone enroll in Medicare to avoid penalties? We've got just a minute left, give us a rundown of that.
Eddie Holland: Yeah, so as we mentioned a few minutes ago, there's really three: there's the Initial Enrollment Period, the Special Enrollment Period, and then the General Enrollment Period. Let me mention one thing that we talked about, I failed to mention it, let me just circle back. We talked about Medicare, you being on a current employer plan. One thing I failed to mention is that for drug coverage, you want to make sure that your HR can confirm that you've had creditable drug coverage. Because if you've opted out of that Initial Enrollment Period, you're continuing to work past age 65, you're on an employer plan that qualifies, during the Special Enrollment Period, you can potentially enroll 8 months after your employer's coverage ends, but you want to make sure that your Part D coverage is still applicable and creditable. HR will be able to confirm if your current employer health plan drug coverage is considered creditable.
Rob West: That's great. Yeah, a really important consideration there. All right folks, we're talking Medicare. The lines are filling up. Eddie's here, we're going to dive into more of your questions right after this break. This is Faith & Finance on American Family Radio. I'm Rob West, helping you apply God's wisdom to your financial decisions. Back with more right after this.
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Rob West: You know, Medicare may be complicated, but careful planning can help you avoid costly penalties, choose coverage that fits your needs, and steward your resources with greater wisdom and confidence. And that's why our focus today is trying to simplify Medicare. Good luck, you might say. Well, we brought in the expert, Eddie Holland. He's with Blue Trust. He's a partner, he's a senior wealth advisor, he joins us regularly on Medicare and Social Security-related topics, and we're taking your questions today. Nearly all the lines full, but still room for one or two more at 800-525-7000. Lori's calling from Alabama. Lori, thanks for your patience. Go ahead.
Lori: Thank you. Thank you. I'm currently enrolled in Medicare Part A when I turned 65. I'm still working, so I'm covered under my work's health insurance. I'm retiring at the end of the year, and I will then go on to my husband's health insurance, but he currently does contribute to an HSA. So how will me being on Medicare Part A affect him being able to contribute to his HSA?
Eddie Holland: So, Lori, the good news is that it will not affect him. Medicare looks at each individual. So because you're on Medicare Part A, you're ineligible to contribute to an HSA. But for your husband, as long as he does not enroll in Medicare Part A, he would be eligible to contribute to an HSA. So just because you're going to go on his plan as either a couple or a family, it will not preclude him from being able to contribute into an HSA, as long as he's not enrolled in any type of Medicare.
Lori: Right, and he's not. Well, thank you so much for taking my call and giving me that answer. That's wonderful.
Rob West: Thank you, Lori. We appreciate your call today. To Arkansas, Diane. How can we help?
Diane: So, I'm 64—currently 64—and I'm planning to retire in December. I'll also turn 65 in December. So I'm a little confused. I was ready to enroll three months beforehand, and now I don't know if I need to enroll the month I turn 65, which will be December, and then say goodbye to the federal government. So I do have 20-plus employees that work with my company.
Eddie Holland: Okay. Yeah, that's a great question, Diane, and I probably should have been a little clearer on that. So if you enroll in during the initial enrollment period and it's prior to your 65th birthday—so in your case, let's assume that you enroll starting in September—Medicare will not make that effective date until the month that you turn 65. So if you enroll anytime prior to your 65th birthday, you're going to get coverage effective the month of your 65th birthday. So in your case, if you turn 65 in December, you'll have Medicare coverage starting December the 1st for yourself.
Diane: But I need to enroll in that, don't I?
Eddie Holland: Yes, I would. I would go ahead and, during the initial enrollment period which just opened up this month, I would go ahead and enroll, and Medicare will make it effective December 1st for you.
Diane: Okay. Okay, cool. That that really explains a lot. Also, the previous caller was saying something about your spouse being on Medicare. My husband is disabled and is on Medicare. I never heard of two people being under one plan. That's a new thing on me.
Eddie Holland: Yeah. What she was referencing was an employer plan. Her husband was continuing to work and she was retiring and planning to go on his employer plan, and she was wanting to know about the HSA rules. In your case, if you're enrolling in Medicare and your husband's already enrolled in Medicare, you guys are still on standalone individual Medicare coverage. There will not be any overlap or cross-pollination.
Diane: Gotcha. One other thing: when I retire, I have the option of keeping my federal insurance, which I'll pay the same amount I pay right now. And I'm planning on doing that as my secondary—Medicare would be my first and then my Blue Cross Blue Shield, if I stay with that, would be my secondary. Do you advise that, or would you advise just strictly going with Medicare?
Eddie Holland: No, I think the federal government plan is going to act as that Medigap plan that's going to fill in some of the out-of-pocket exposure that Medicare Part A and B leave. So based on what I know and what you've described, it does sound prudent to consider continuing that coverage as more of a Medigap or supplement plan to Medicare Parts A and B.
Diane: Okay, so Medigap instead of—go ahead, Rob.
Rob West: No, no, go right ahead. Finish your thought.
Diane: Okay, I was going to say, so don't continue my federal insurance, but take up the Medigap?
Eddie Holland: No, I would compare. Your federal insurance may actually be a more robust or better coverage than a Medigap. So I would meet with a Medicare agent that can compare the coverage that you would have through the federal insurance compared to a standalone Medigap. And based on my experience, the federal government plan's going to be a little more robust. So I strongly encourage you to at least consider continuing that.
Rob West: Diane, we appreciate your call today. Thanks for being on the program. Call anytime. Just one line open: 800-525-7000. Eddie, about a minute and a half before our next break, let's talk about married couples for a moment. When one spouse becomes eligible for Medicare before the other, what coverage options does the younger spouse have?
Eddie Holland: If the older spouse keeps working, Rob, then the employer plan may still offer coverage for both the older spouse and the younger spouse. There's actually, in some of my clients' situations, even if the older spouse retires, some employer plans offer coverage for younger spouses. So that's something that they would need to confirm with HR.
COBRA, as you're aware, can stretch up to 36 months for the younger spouse. It's pricey, it's not considered creditable coverage, but if they're younger than 65, that's an option.
And then Healthcare.gov has a lot of marketplace plans available, which can potentially bridge the gap between current age and age 65. The benefit of that is there may be some subsidies for that.
And you know you can't have me on without adding a little bit of financial planning topics to this. It's important to budget for a few years of potentially higher premiums until spouse number two hits 65. You just don't want any unexpected curveballs in retirement.
Rob West: Yeah, no doubt about it. I think the COBRA—that's a big idea there because given that it's not creditable coverage, you don't have the same waiver on the penalties, is that right?
Eddie Holland: That is correct, yes.
Rob West: Yeah, so be careful there. Excellent stuff. Well, I tell you, every line is full, which just means this is an important topic. There's a lot of confusion, and Eddie's going to break it down for you. We've still got plenty of time. We'll get to as many calls as we can, and we'll do that right after the break. Headed to Arkansas and Michigan, and Kentucky and Georgia, and perhaps your state, as we tackle these questions. Eddie Holland here today from Blue Trust. You can learn more at bluetrust.com. Back with much more right after this. Stick around.
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Rob West: I'm so glad you're with us today on Faith & Finance here on American Family Radio. You know, Medicare, our topic today, may seem like a purely practical topic. It's filled with enrollment periods and coverage choices and premiums and deductibles. But even decisions like these can become opportunities for faithful stewardship. Scripture reminds us that wise planning has value, not because we control the future, but because we're called to manage well what God has entrusted to us. And as we grow older, healthcare becomes a larger part of that responsibility, and we're trying to cut through some of the confusion today. Eddie Holland is here. Eddie's a partner and senior wealth—senior private wealth advisor with Blue Trust. He's a CFP, a CPA, and a Certified Kingdom Advisor, and he joins us regularly on these topics. Uh, all the lines full! Lots of questions here, so we'll get to as many as we can. Uh, let's head to Arkansas. Rick, go ahead.
Rick: Yes, uh, thank you for taking my call. Um, I've uh—I'm 74 years old. I have uh a Medicare—of course, I'm on Medicare, and uh I have a policy outside of Medicare, which would be Blue Cross Blue Shield. So, my question is, if—and it's getting high. The the the premiums keep going up and up, and and that's understandable. Do I—if I go to a share program, a Christian share-type insurance program...
Rob West: Yeah.
Rick: ...uh and see that that works well, that I could stay there. But if I go there and it doesn't work well, what are the ramifications of leaving Blue Cross Blue Shield, or any company, and trying to go back to them?
Rob West: Well, I'll get uh Eddie to comment on that part. Let me just say, you know, our long-time underwriter here at Faith & Finance is Christian Healthcare Ministries. They're the—they're the biggest and oldest in this space of health sharing ministries. Uh, CHM, you can find out more at faithfi.com/chm. They do have something called SeniorShare. Uh, it's currently—excuse me. Sorry. Uh, currently listed about $120 a month per person. And, you know, it's not insurance, of course, but it works alongside Medicare where Medicare uh comes first and then CHM kicks in after that with eligible remaining expenses. So, again, uh you can learn more at faithfi.com/chm. But, Eddie, to his point about, you know, if for some reason that didn't work out and he needed to go back, what would he need to know?
Eddie Holland: Yeah, so keep in mind, Rob, when you make changes to your Medigap plans, if you exit those, you could potentially be subject to underwriting at a future point. And so, uh if if you develop a chronic health issue, which normally happens, right? When you're healthy, you don't need insurance; when you get sick, that's when you need it.
Rob West: Yeah.
Eddie Holland: So, in that situation, if you've developed a chronic illness and then you apply for another Medigap plan or to go back on, then you would potentially be subject to medical underwriting, and you may not be eligible to uh purchase that policy. So, that's certainly a risk.
Rob West: Hmm. Rick, is that helpful?
Rick: Yep, it is. That's that's kind of what I thought might be the case, and uh uh may have to just buckle up and keep paying what I'm paying. Well, thank you for taking my call.
Rob West: Yes, sir. Call anytime. Thanks for being on the program.
Eddie Holland: Yeah, let me just mention, sorry to jump in, uh each state is different. So, I'm make—making general kind of blanket statements, but I would encourage all of our listeners to to make sure that you speak with a Medicare agent in your state that's licensed, licensed and reputable and knowledgeable, because each state does have some nuances around some of the things like medical underwriting.
Rob West: Yeah, very good. Rick, thanks for your call. Let's go to Michigan. Carol, go ahead.
Carol: Hi, um thank you for taking my call. Um, my husband works at Amazon, and he'll be 65 in a in two more years, I believe. Um, and I just was wondering, if he turns down um Medicare, and he decides to stay with his health insurance, which is actually really good insurance, what—and well, then at at 67 he would retire and then he would have to go on Medicare—what form or what would he need to fill out in order to get that, I guess, proof of creditable coverage? And also, is it just Part D he needs proof of the um the—what is it? Uh, now I lost lost my train of thought here. Um, he just—you're saying he only needs creditable coverage for Part D for some reason. And I just I wonder how to get that creditable coverage, if there are forms for Medicare and for Amazon, and how to go about getting the exact proof of that creditable coverage.
Eddie Holland: Thanks for that question, Carol. So, no, he would actually need creditable coverage for Parts A, B, and D, so he would need creditable coverage for all of those. Amazon would provide him—his HR department would provide him a letter confirming that he has been on a group health plan from his 65th birthday up until the date of his retirement. That will be submitted along with his Medicare application to Medicare, and they will accept that as proof of creditable coverage. So, it would be for Parts A, B, and D, not just Part D.
Rob West: Hmm. Does that make sense, Carol?
Carol: It does. Also, um Amazon's HR department is overseas, and it's really hard to get ahold of them and have things explained. Is there—I mean, is this something that we have to call them for, or do they just automatically send it out, this letter, you know, about his 65th birthday and on?
Eddie Holland: As big as Amazon is, I feel fairly confident that their—this is a very uh basic, kind of rudimentary process for them, so I feel very confident that they've done this for many, many employees. So, I don't anticipate that being a problem for your husband.
Carol: Okay. All right, well, thanks.
Rob West: Absolutely, Carol. Thanks for your call today. We appreciate you being on the program. Uh, we've got one line open. Eddie Holland's here talking Medicare today, 800-525-7000. Out to Mississippi. Penny, go ahead.
Penny: Oh, hello. Hey, can you hear me?
Rob West: Yes, ma'am. Go right ahead.
Penny: Hey, so I have—I'm 65 and—no, I'm sorry, I'm 75. And um I have, you know, my Medicare, and then I have the supplemental insurance, Colonial Penn. And it's like $416 a month for the Colonial Penn. So, I mean, it seems like—I'm real healthy, hardly ever use any of it, and I've talked to people who have Medicare Advantage, and they love it, and they don't pay anything. So, I'm thinking about doing that. What do you think about that?
Eddie Holland: Yeah, Penny, you've hit on one of the hotter topics in Medicare planning right now, and and it's the Medicare Advantage versus the Medigap. Just for everybody's benefit, all of our listeners, Medigap offers the widest provider choice, so it's the most robust coverage. As you mentioned, it does have predictable cost of monthly premiums. You do have to have a separate Part D plan. The premiums are normally higher, but the coverage is normally richer. You contrast that with Advantage plans—oftentimes Advantage plans have low or zero premiums—monthly premiums—and sometimes they throw in additional benefits like vision and dental. However, the networks could be a little bit uh more confined, a little more restricted, and there are some pre-approvals that could potentially apply. Now, most of the time, Penny, what happens is you get a lower premium on the outset—so, the monthly premium is zero or very low—but there are potential out-of-pocket costs on the back end. So, there's annual out-of-pocket caps. If you're in-network, it's about $9,200—$9,250 in 2026. If we're talking about in and out-of-work—in and out-of-network combined, it's almost $14,000—$13,900 in 2026. So, what you save on the outset upfront, you could potentially expose yourself on the back end. If you're healthy and don't need much medical attention, then it could potentially be a better option for you from a Medicare Advantage standpoint. But if you do have some chronic issues or develop some of those, there could potentially be some much higher out-of-pocket costs on the back end.
Rob West: Hmm. Very good. Penny, thanks for your call today. It's a great question, and I know a lot of folks wondering about that: is Medigap or Medicare Advantage better for me? And it really comes down to Eddie's point on your priorities: Do you want more access? Do you want lower costs and and copays? And uh what about premiums? What about your medical condition and underwriting? There's just a lot of factors that can ultimately help you figure out what the best option is for you. All right, a quick break, and then back with our final segment and your calls. Eddie Holland's here. Stay with us.
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Rob West: Thanks for joining us today on Faith & Finance here on American Family Radio. I'm Rob West. Eddie Holland's here today. We're talking Medicare, taking your questions, and in just a minute, we'll talk about something called IRMAA. That's the income-related monthly adjustment to your Medicare, depending on your income. Doesn't kick in for two years, but there are real implications to things like large distributions from IRAs, or you working, and—or perhaps even an inheritance. We'll talk about whether that factors into this and whether that could result in hundreds of dollars of increase in your Medicare premium a couple of years later. What is it? Well, Eddie'll shed some light on it in just a moment. But first, let's head to Kentucky. Melinda, thanks for your patience. Go ahead.
Melinda: You know, I appreciate your show, and, um, thank you for taking my call. First of all, I worked almost 30 years and then I had to go on disability, so I automatically got the A and B card. But then I took out an Advantage plan, but somebody said the Advantage plan was not a good to have. So, I was wondering if I should drop that and just do the A and B? I have cancer now, so I have a lot of scans and stuff like that that I have to do. So, I just set know which would be the best.
Eddie Holland: Melinda, my best piece of advice would be to meet with a local Medicare agent that's knowledgeable and understands most of the rules. I know with an Advantage plan, it's fairly easy to get in, and you can kind of hop in and out of various Advantage plans during the open enrollment every year. If you wanted to move into a more robust coverage through a Medigap plan, most of those have underwriting restrictions. So, you would have to be approved by the company before you actually can go on Medigap. So, my recommendation would be to, uh, certainly meet with an agent and see if there are any Medigap policies that are available. My guess is they're going to have better coverage, so you'll pay a monthly premium up front, but they'll have better, better back-end coverage. But because of your medical condition in your recent cancer diagnosis, you may not be eligible for Medigap. So, if that's the case, if it's purely just A and B versus an Advantage plan, then the, uh, Medicare agent's going to be able to—to really look at your specific state situation and tell you which option's going to be better.
Rob West: Melinda, is that helpful?
Melinda: Yes, it is, and I appreciate you taking my call. Thank you very much.
Rob West: Absolutely. Sure, thanks for your call today. Uh, let's go out to Texas. Beebee, go ahead.
Bebe: Hi. Um, I'm calling because I want to know what to purchase so that if I have to go to the hospital or run some expensive tests, like MRI or something, I don't want to have to pay anything at all. My mom had—I don't know what she had, but she's passed, but when she went to the hospital and came out, she didn't have any bills. It was—I know she had Blue Cross. I saw one of those bills, but I don't know what else she had and she passed, and I couldn't ask her what she had that she will have no bills whenever, you know, she needs something done or whatever.
Eddie Holland: Yeah, Beebee. My guess is that she probably had what was a Plan F. That was the most comprehensive Medigap plan available. That's no longer available to anyone that turns 65 or older after July—on or after June—January 1st, 2020. So, in your situation, you're probably not eligible for F. The most robust Medigap plan right now is a Plan G, as in George. It pays for every single gap with the exception of the Part D—I'm sorry, Part B deductible, which in 2026 is $283. So, you pay a monthly premium, you purchase the Plan G, you pay $283 out of pocket, and then it covers everything else. So, it fills in all of the gaps with the exception of that Part B deductible. That's going to be your most robust plan option.
Bebe: Uh, okay. Is this—is this better than buying one of—one of those Christian things to fill in the gap?
Rob West: Yeah, so what you're talking about there is, uh, something like Senior Share from a Christian health cost sharing ministry. What's great about that is just the cost. You know, a lot of people are seeing the cost of these, uh, Medicare Advantage and Medigap options and saying, "That's just not an option for me." And so, to be able to get that, uh, additional support—it's not insurance, but additional help with medical expenses at something like $119 per month for Senior Share, where it kicks in to cover some of the expenses, the remaining eligible expenses beyond Medicare, is just a great option. So, I would certainly look at it. We have a lot of listeners who love it, and it fits their budget. And, uh, you can check it out by heading to faithfi.com/chm. That's faithfi.com/chm. Uh, Beebee, thanks for your call today. We appreciate you being on the program. Uh, let's head, uh, down to Georgia. Cynthia, go ahead.
Cynthia: Good morning. How are y'all?
Rob West: Doing great. Thanks for your call today.
Cynthia: Thank you for taking my call. I'm retired military, so I'm trying to understand what I need to do. I'm not eligible for Medicare until I'm 65, and I'm almost there. I also have my military retirement pay, so I have TRICARE For Life, or will. Do I need to purchase a D or a C because of those?
Eddie Holland: So, Cynthia, the—excuse me—the nice thing about federal retirees is Part B is, uh, potentially your choice. Uh, federal retirees are offered the same Medicare benefits as all other retirees. So, you could enroll in Part B during your initial enrollment period as you approach age 65. If you don't enroll in Part B when you're first eligible, then you will be subject potentially to a late enrollment period. And the same would apply for Part D. So, in your case, what I've—my personal experience when I've served clients who have worked for the federal government is they've enrolled in Part B—Part A, B, and D—and they've kept their TRICARE as a supplemental plan. It's not required, but it probably offers you the most robust coverage.
Rob West: Is that helpful, Cynthia?
Cynthia: I was hoping that—I'm sorry.
Rob West: Is that helpful?
Cynthia: Oh, yeah. Yeah, it helps me a lot. Thank you, all.
Rob West: Absolutely. Thanks for your call today. Uh, Eddie, I want to take just a moment and talk about IRMAA. You know, Medicare premiums can be confusing, especially when income-based surcharges come into play. So, uh, let's take just a moment here and talk about what is IRMAA and how does it affect someone who pays?
Eddie Holland: Well, as you stated earlier, Rob, it's income-related monthly adjustment amount. That's what the IRMAA acronym stands for. As we mentioned earlier, Parts B and D have a base premium. IRMAA is simply a surcharge added to the base premium if your modified adjusted gross income is above certain thresholds. In 2026, that threshold for a single taxpayer is 109,000; for a married filing joint, it's 218,000. Now, you alluded to this a few minutes ago. It's based on your most recent tax return, which in a lot of ways is—the most recent tax return is two years back. So, in 2026, the most recent tax return on file at the beginning of 2026 was the 2024 tax return. So, the 2024 modified adjusted gross income determined or decided 2026 premiums. Now, there are qualifying or life-changing events that you can appeal your IRMAA. So, we've helped a lot of clients navigate this IRMAA appeal process. Let's say you've retired. Let's say you made $200,000—let's say you made $300,000 before you retired. Your most recent tax return is going to show you're over the IRMAA threshold. Well, you can file Form SSA-44—Form SSA-44. You specify, "I have retired. Here's my retirement date." You submit that to Medicare through Social Security, and then they will render a decision. Here's what I like to do. I like to get a letter from your HR department stating, "I have retired on this specific date." It's not required, but I found that's been very successful for clients that have retired. They've got proof that they've retired. They're projecting. Now, there is a true-up. You can't go on and say, "Hey, my income's going to be less going forward." Social Security will actually monitor this, and every year, if your income is higher than what you estimated it to be, they will actually capture the—the premium difference. So, in your case, if you said, "Hey, I'm—I'm appealing it. My income's going to be lower," and then your income was actually higher, Medicare will send you a letter saying, "Hey, you—you lied to us," essentially, "and you're going to have to pay back premiums." They either take that through your Social Security check, or you stroke a check and pay that premium. So, it's—it's very important to understand that IRMAA not only affects, as you said, income, uh, from employment, but it also affects IRA distributions and Roth conversions. We help a lot of clients through Roth conversions. Just keep in mind, because it's going to look back two years, if you did a Roth conversion at 63 or 64, that's something that—that's not a life-changing event. You can't appeal that. So, if you've done Roth conversions, you may be subject to a higher Medicare premium for a couple of years. Just make sure that that Roth conversion was worth it.
Rob West: Yeah, that makes sense. Because a lot of people use those years between retirement and full retirement age on Social Security to get as much into Roth as possible, right?
Eddie Holland: That is correct, yes. And you just want to make sure that—we're not saying that Roths aren't important. It's just you want to make sure that you understand some of the unintended consequences of that Roth conversion.
Rob West: What about inheritance?
Eddie Holland: So, an inheritance, if you receive an inheritance and it is—uh, it generates additional income. So, let's say that you receive a—an IRA, inherited IRA. That's not going to be a qualifying event. So, in your—in that case, if you have, "Hey, I inherited a million-dollar IRA from my mom, I've got to take $100,000 out over the next 10 years," that additional income is going to be subject to the IRMAA threshold, so you'll have to be, uh, probably paying a higher premium.
Rob West: But if it's non-qualified, you inherit a house or just a stock portfolio, that's, uh—or cash, that's not going to affect your IRMAA, right?
Eddie Holland: Correct. Yes, you get the step-up in basis. If you turn around and sell that, if there's no capital gains—if you do sell it, if you receive a house, it grows in value over the next year, then you could potentially pay it. But in general, no, an inheritance is not going to affect that.
Rob West: Excellent. Eddie, so appreciate you, my friend. Uh, your time, your commitment to being here to help us, uh, make sense out of all of this, and, uh, we're really grateful.
Eddie Holland: It's my pleasure. Thanks for having me.
Rob West: All right. That's Eddie Holland. Eddie is a senior private wealth advisor and partner at Blue Trust. If you'd like to learn more about Blue Trust, you can head to bluetrust.com. Blue as in Ron Blue, the founder of, uh, what was at the time, Ronald Blue & Company, now Blue Trust. And just an incredible organization. So many Certified Kingdom Advisors all through the organization. They have offices all over the country. And, uh, Eddie is somebody we just have so much respect for. He's, uh—just really wants to help God's people manage his money God's way. And, uh, he joins us regularly. We'll look forward to having him back real soon. Folks, that's going to do it for us. Big thanks to my team today: Taylor, and Devin, and Patty, and Aften, and everybody here at FaithFi that makes all of this possible. If you'd like to support our work, head to faithfi.com/give and consider becoming a partner today. Partners get every new resource and our magazine mailed to their door throughout the year. Faithfi.com/give. We'll see you tomorrow. Bye-bye.
Announcer: The views and opinions expressed in this broadcast may not necessarily reflect those of the American Family Association or American Family Radio.
From enrollment deadlines and late penalties to Medigap, Medicare Advantage, and income-based premiums, the choices for Medicare can feel overwhelming. On this Faith & Finance on AFR, Rob West and Eddie Holland explain our options so we can make wise, faithful stewardship decisions. Then, it’s on to calls.
(00:00) Rob West is joined by Eddie Holland to examine what Medicare is and is not
(04:16) When to enroll in Medicare
(09:35) How Medicare works alongside employer health coverage
(10:59) Caller Terry: On disability, has Medicare A and private insurance. Is it still beneficial to sign up for Medicare B?
(21:10) Caller Lori: On Medicare A and husband’s insurance. Is husband still eligible for HSA?
(22:21) Caller Diane: 64 years old and still working full time. When does she need to apply for Medicare?
(32:05) Caller Rick: How does Medicare work with health sharing plan?
(34:58) Caller Carol: How to acquire proof of credible coverage
(37:14) Caller Penny: Supplemental insurance
(42:55) Caller Melinda: Has advantage plan with cancer. What are her options?
(44:40) Caller Bebe: Looking for a Medicare plan that covers everything
(47:10) Caller Cynthia: 63 years old, retired military. Does she need to purchase part B or D?
(48:45) Eddie Holland explains IRMAA
Live
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