Medicare Most Frequently Asked Questions - Part 2

When Can I Sign Up for Medicare?

You can sign up for Medicare as soon as you become eligible, regardless of what month it is. But each year, you have the option of making changes to your Medicare Advantage and prescription drug plan (or Medicare Part D) during open enrollment. Open enrollment ran from October 15 to December 7 and has been so for several years. 

During that period, you could have switched from original Medicare to a Medicare Advantage Plan, or vice versa. You could have also switched from one Medicare Advantage plan to another, or from one Medicare part D prescription drug plan to another, or dropped your Medicare Part D coverage altogether.

There is also the Medicare Advantage disenrollment period in which you are currently in. This period runs from January 1 to February 14 each year. During this time, Medicare Advantage enrollees can switch back to Original Medicare and then sign up for Medicare part D as well. Again, if you are newly eligible for Medicare, you can enroll the year around.

Are There  Other Times I Enroll in Medicare?

There are also special circumstances where Special Enrollment Periods are available. According to Medicare.gov, if you are covered under a group health plan from a current employment, you can sign up for Part A and/or B during the Special Enrollment Period as long as you or your spouse are working and are covered by a group health plan through your employer.  Additionally, there is an eight month period where you can sign up for Part A and/or B the month after employment ends or group health plan insurance ends

If you have any additional Medicare questions or comments, leave them below.

11 Most Important Financial Terms You Need to Know in Business

Cost-Volume-Profit diagram, showing Break-Even Point as point where Contribution equals Fixed Costs. 

When you're asking for capital to start or expand your business, it's important to know the key financial terms the financiers use and what these terms actually mean.

I've included a brief summary of these financial terms to help you in your efforts:

1. Financial Statements: Used as a reference for Profit & Loss Statement (which shows revenues and expenses and your income or loss) and the Balance Sheet (which reflects your assets, liabilities, and owner's equity).

Additional financial reports such as Cash Flow, Break Even Analysis, Sources and Uses of Working Capital, and Financial Ratios Analysis are also often included.

2. Debt or Equity Capital: Describes what kind of capital you are seeking. Debt is usually in the form of a loan, promissory note, mortgage or other legal instrument. Equity is an ownership position in the business.

3. Rate of Return (Yield): The primary purpose of investing your money or getting other people's money is to earn a return on capital. This number indicates what profit or interest investors or lenders receive for investing. Prior to approaching any source for funds, you should know what kind of yields they are seeking.

4. Cash Flow: This is the life blood of a company. Cash flow is the generation of funds available to pay expenses and returns to investors or lenders. Cash flow reflects the timing and amount of inflow and outflow of funds.

5. Working Capital: Usually, this figure represents total assets that will be converted to cash within a year minus liabilities that must be paid within a year.

6. Collateral: This is property accepted as a secondary source of repayment of a loan or other obligation.

7. Break Even Analysis: A method of assessing a company's profit potential downside risk. Expenses should be separated into variable costs (i.e. labor, materials, commissions) and fixed costs (i.e. rent, utilities, salaries, insurance, etc.). With these costs and estimated revenues per unit, you can determine how much product/service must be sold to cover costs.

At this volume, your company incurs neither a profit nor loss.The break even analysis is an important tool to illustrate the effects of product price changes, cost increases or a reduction in demand on the company's profitability.

8. Margin: The difference between revenues received and expenses incurred and commonly expressed as a percentage or dollar amount. Gross margin is the difference between total sales revenue and total costs of goods sold. Net margin is the difference between total sales revenue and all costs associated with producing goods, including administration, taxes, and other overhead expenses.

9. Leverage: The ability to borrow a larger amount of money than a company has invested in property or assets.

10. Fixed Cost: A cost that remains unchanged even with variations in output.

11. Variable Cost: The cost of production that vary directly in proportion to the number of units produced.


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Medicare Open Enrollment is Over, but not Obamacare, yet

While the Open Enrollment Period (OEP)was over for most senior citizens on December 7, those who are duo eligible (have both Medicare and Medicaid), or have a chronic illness such as diabetes can change or replace Original Medicare, Medicare Advantage or a Prescription drug plan anytime throughout the year. Also, specific situations, such as moving into a new area of realizing an eligibility change can allow you a Special Enrollment Period (SEP).

However, if you are not yet eligible for Medicare, you are vulnerable to Obamacare, and all of its problems. If you have been able to enroll on healthcare.gov, you are “lucky”. And, if you did enroll you probably discovered that you had an increase in premiums along with a higher deductible and co-payments. Keep in mind that although you have enrolled, you do not have insurance until you have paid the first premium.

Here’s why your premiums have gone up: Obamacare has the requirement that insurance policies has to cover “ten essential health benefits”. Obamacare requires you to pay for these benefits whether or not you want them or need them. For example, a childless person must pay for a plan that includes pediatric services.

Now, here are these ten essential health benefits:
1. Ambulatory patient services
2. Hospitalization
3. Prescription drugs
4. Prevention and wellness care.
5. Emergency services
6. Maternity and newborn care.
7. Rehabilitation services
8. Laboratory services
9. Mental health services
10. Pediatric services

If you voted for Obama, you got what you voted for. Always remember, elections have consequences. Another election is coming up in November 2016. Research the candidate’s position on the issues that matters to you. Keep in mind that a vote for Hillary Clinton is a vote for a 4 year extension of Obama's policies, including Obamacare.

Consider if the candidates positions become law, how would it impact you, your, family and your bank account.  Know their past voting records, and then decide who would be the best candidate for your vote. Don’t vote on superficial qualities and then have buyer’s remorse.


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