Translating Medicare-ese for financial advisers

In my previous blog, I posed the question: Is Medicare the next frontier for financial advice? Several readers responded with a resounding yes.

The question was triggered by a recent online survey by Nationwide Financial that revealed that nearly half of high-net-worth Americans who are close to retirement age are “terrified” of what health care costs may do to their retirement plans. But 38% of those surveyed said that they haven’t discussed retirement health care costs with a financial adviser, in part because they are unsure as to whether their adviser is knowledgeable about the issue. Expertise in retiree health and Medicare can help advisers retain and attract pre-retiree clients.

In a follow-up column for the May 13, 2012, print edition, I listed several resources that financial advisers can use to estimate their client’s potential health care costs. The list included Nationwide’s free Personal Health Assessment program available from Nationwide’s Income Planning Desk ([email protected] or 877-245-0763). Advisers who don’t work with Nationwide can access a similar health assessment tool for a fee from HealthView Services, Inc. developer of the Nationwide tool, or license the Medicare Genie software from Battle System.

Now I want to add another arrow to your quiver. Allsup’s Medicare Advisor is a customized fee-based service, which helps seniors and people with disabilities choose the right Medicare plan for their needs. The company, which serves as the Rosetta stone of Medicare’s unfamiliar terms and arcane rules, is now branching out to financial advisers.

Allsup, which is not an insurance company and does not sell supplemental Medigap plans, can help advisers and their clients navigate the initial Medicare enrollment period, determining what they need to do and what they may be able to defer—such as Medicare Part B coverage is they are still employed.

And, just as people need to rebalance their investment portfolios, they also should review their Medicare options from time to time as their health needs change—even though most people don’t. As part of a client’s annual financial review, financial planners can team up with Allsup to review Medicare as well.

Th Allsup Medicare Advisor service starts with an in-depth assessment of the customer’s needs (such as medications, preferred doctors) done via a phone interview and results in a detailed report of the available options and recommendations for the three plans that most closely meet the customer’s needs.

Consumer pricing varies from $75 to $395, depending on the level of service. Or, financial advisers can partner with Allsup to deliver Medicare advice as a value-added feature. For more information, click here or call (866) 521-7655.