The Part D Penalty- Very Misunderstood & Confusing

What Penalty?

Recently I enrolled a new client into a Prescription Drug Plan (Part D Medicare coverage). She was very happy with the plan that covered all of her medications effectively, but after she received her first premium billing she called me in a state of panic- ” What is this penalty I am being accessed? Why do I have to pay an extra $30.00 a month on top of my premium? THIS IS WRONG!!!.”

The Part D penalty imposed by Medicare’s rules is not only confusing to most folks, but in many cases people are totally unaware of it’s implications. In the situation described this client, who was in her late 80s was totally unaware of the rule that produced an unrevocable penalty.

Here in a nutshell is the Medicare regulation: When an individual ” ages in ” to the Medicare program (in most cases turn age 65) they have a limited time to sign up for Prescription Drug coverage to avoid a lifelong penalty that continues to grow each month, unless they can prove they have creditable coverage from some other source. There is a seven month time period (three months before your birth month, your birth month, and three months afterwards) to sign up for Medicare coverages. You have 63 days after this time period ends to sign up for part D or you are subject to a penalty which seems small at first as it is only 1% of the national average premium base (Around $30) or about 30 cents monthly. But this quickly gets costly as 30 cents (or more) per month can grow through the years to more than what the carrier’s premium would be. That is permanent and non-cancellable.

So, what is creditable coverage? Simply, it is coverage that is expected to pay, on average, at least as much as Medicare’s standard prescription drug coverage. Employers and unions who provide medical coverage to their employees must explain their programs on a regular basis to the goverbnebt to explain their coverage qualifies for this designation. There are other resources such as Military coverage that can qualify as being creditable. Again, if a person loses that creditable coverage they then have a very limited time (63 days) to enroll in a qualified program with a Medicare carrier.

  • Lou Reinitz LJR Insurance Solutions LLC


While congress continues to promise legislation, prices keep going up.

So, what is the biggest complaint I keep hearing as a Health Insurance broker? ” WHY ARE MY MEDICATIONS SO EXPENSIVE?!!!??

Well, that is an easy question to answer- Sadly, Americans pay the highest drug prices in the world and those costs keep skyrocketing. It is only February and already the prices on 500 medications have risen. Yep, the uncontrolled drug companies keep finding ways to make us pay more and more.

Sitting in the Senate is a bipartisan proposal that was passed a while ago in the House. How can we get Congress to take some action now to get this important bill passed and get some relief for all Americans?

It is time to get this done. Otherwise, our budgets will continue to be strained by the oft times outrageous prices we are now paying. We cannot allow these costs to us continue to accelerate while big pharma continues to get richer and richer.

  • Lou Reinitz LJR Insurance Solutions

Macular Degeneration- Good Food can Help Fight It

Take your eye-specialists advise to maintain your vision as you age
A problem for many seniors

Recently, I was diagnosed with AMD- Age Related Macular degeneration, a common but serious ailment affecting many seniors. When I played cards I kept complaining ” I can’t see the cards clearly, sometimes 5’s look like 6’s.” When I watched TV I was aware that the screen was starting to look ” blurry” especially in the middle, which makes sense, as my problem is located toward the center of my visual area. The bad news is that there is no cure. The good news is hat the progression of this disease can be slowed. Fortunately, I was able to get an appointment with an eye-specialist who recommended taking ” eye-vitamins” (available at your local drug store with no prescription) along with good nutrition. Yes, eating the right foods can also help our vision! Foods like Blueberries, Spinach, and Oranges are loaded with beneficial vitamins and antioxidents. Also dark chocolate (hooray!) Oysters, Egg Yolks, and naturally Carrots (thanks Bugs), along with Tuna, Sunflower seeds and hot tea are recommendations. I promise to keep eating healthy foods and taking my eye vitamins so that I can preserve my precious sight for many years to come. I will continue to work full-time until the light fails which I hope and pray is a long time from now! I hope this information helps others with this infliction!

  • Lou Reinitz LJR Insurance Solutions LLC



Can I drink alcohol with this medication? Doctors get this question a lot, and it is especially timely with the new year’s celebration about to begin.

Over half of Americans take prescription meds and have at least one alcoholic drink daily. Although moderate drinking may have some health benefits there is a real risk when taking these common medications:

*PAINKILLERS- Mixing booze can lead to stomach bleeding or ulcers. This including Tylenol, Motrin, and Aleve- not just the heavier stuff.

*ANTI-ANXIETY MEDS, SLEEPING PILLS, AND ANTIDEPRESSANTS AND MOOD STABILIZERS- Alcohol can dramatically affect the potency of these type of medications and cause serious problems. Avoid at all costs!

*NITRATES AND BLOOD PRESSURE DRUGS- Can cause dizzyness, drowsyness and even cause you to become unconscious. Or worse.

NOTE- OLDER PEOPLE SHOULD BE EXTREMELY CAUTIOUS. WOMEN SHOULD BE EXTRA CAREFUL- Due to the fact that femailes have lower levels of alcohol dehydrogenase, an enzyme that breaks down ingested alcohol into the body.



Medical News can Cause Depression

If you want to keep your sanity it’s probably a good idea to turn off your television news, throw away the newspapers, and burn the computer.

Of course, I know you can’t do anything of those things. In reality, you must keep informed! It is our duty to keep up with all the developments that fly at us in an unrelenting manner today.

That means it is more important than ever to nave an experienced health insurance broker to help guide you through this morass of confusing and oft times redundant deluge of information. Someone who is available to you not just on a phone call, or on the internet, but surprise! There all year for you when you have questions or a problem. Give us a call anytime, and avoid the psychiatrist’s sofa.

Lou Reinitz LJR Insurance Solutions 760 699-1359

Celebrating a decade of serving clients in five states with their health insurance needs, and never at any extra cost to you.