SURPRISING perks Social Security users can now get have been revealed, as the benefits system sees a major change.
The rollout of unexpected supplemental benefits has increased over time, and now users can get things like golf equipment and pet food.
GettySurprising perks Social Security users can now get have been revealed, as the benefits system sees a major change[/caption] GettyThe rollout of unexpected supplemental benefits has increased over time, and now users can get things like golf equipment and pet food[/caption]Fox Business reports on the unique benefits some Medicare Advantage plans are now offering to those who enrol.
Medicare Advantage was initially introduced as a way to make Medicare more cost efficient by having private insurers mange the health coverage of those who join.
This means that Medicare does not have to take on the financial burden of insuring you.
The benefits of Medicare Advantage have only increased over time, and they’ve just reached their most bizarre point yet.
This program saw a steady uptake in benefits to members by removing unnecessarily expensive procedures.
Instead, these funds were used to cover more affordable healthcare premiums.
Benefits were originally limited to things like dental and vision plans.
But in 2018, changes were made to the program which expanded the definition of what benefits it could provide.
It meant that Medicare Advantage could offer supplemental incentives that had a “reasonable expectation of improving or maintaining the health or overall function” of those dealing with chronic illness.
Looser terms allowed more recreational expenses like greens fees at golf courses and ski passes.
It also included things like food and supplies for pets, hunting licenses and entry fees for social clubs.
As long as it was tangentially related to health, whether that be physical or mental, the definition of what a benefit was had expanded.
COST COMES BACK AROUND
Given that the majority of Medicare enrolees have chronic conditions, it has forced plan payments to go up.
Coupled with the increase of younger, healthier enrolees, the Medicare Payment Advisory Commission noted a new dynamic forming.
It stated that it “overpays for beneficiaries who have very low costs, and underpays for beneficiaries who have very high costs.”
HOW TO SUPPLEMENT YOUR SOCIAL SECURITY
Here's how to supplement your Social Security:
Given the uncertainty surrounding Social Security’s long-term future, it’s essential for workers to consider ways to supplement their retirement income.
Senior Citizens League executive director, Shannon Benton recommends starting early with savings and investing in retirement accounts like 401(k)s or IRAs.
401(k) Plans A 401(k) is a retirement account offered through employers, where contributions are tax-deferred. Many employers also match employee contributions, typically between 2% and 4% of salary, making it a valuable tool for building retirement savings. Maxing out your 401(k) contributions, especially if your employer offers a match, should be a priority. IRAs An Individual Retirement Account (IRA) offers another avenue for retirement savings. Unlike a 401(k), an IRA isn’t tied to your employer, giving you more flexibility in your investment choices. Contributions to traditional IRAs are tax-deductible, and the funds grow tax-free until they are withdrawn, at which point they are taxed as income.This means that younger beneficiaries who require less money given to them in comparison to more vulnerable older people are overspent on.
This is because of the rising disproportionate numbers of young people compared to older people on the Medicare Advantage program.
Therefore, the cost of enrolling is going up for everyone, young and old.
AN OPPOSITE EFFECT
It has resulted in plans increasing from 112% to 120% of the program’s estimated costs from 2015 to 2024.
The expanded supplemental benefits is also said to have increased the amount being spent on overpayments to plans.
One report shows a jump from $18 billion to $77 billion each year in this regard.
So, eventually the increased amount of Medicare benefits is meaning this cost is passed onto the beneficiary.
In essence, the Medicare Advantage program wad designed to cut costs, but it has had the opposite effect.
Manhattan Institute senior fellow Chris Pope wrote: “Medicare Advantage was intended to be a cost-saving alternative to traditional Medicare.
“But overpayments to plans have left taxpayers on the hook for an additional $1 trillion over the next decade.”
As long as it was tangentially related to health, whether that be physical or mental, the definition of what a benefit was had expandedGetty Read More Details
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