Need proof that Baby Boomers are getting older? Look no further.
Fifty years ago, both Medicare and the Grateful Dead got their start.
“Today, all the surviving members of that famous San Francisco band are eligible for Medicare,” says medical consultant Katy Votava, who advises clients on health care strategies.
It may be hard to picture Deadheads on Medicare, but that’s how old the band – and the government services program – really are.
What is new is how much extra you’ll now pay for Medicare as your income rises. According to Votava, you could pay up to $4,878 per person for income-related Medicare charges, in addition to Medicare copayments, deductibles, Medicare D premiums and supplemental coverage premiums.
Some of our clients have been shocked to see how much they’re being docked for these Medicare income-related charges.
Here’s Votava’s advice: Make sure your financial advisor receives a copy of your tax return each and every year so they can plan strategies to reduce your reportable income and avoid these charges, which can run as high as $9,800 per couple.
(Note: we ask clients for a copy of their return each year when we conduct their Annual Review, so when it’s time for your Review, you’ll understand why these documents are so critical to our planning efforts).