Anyone service The Village's / Lady Lake area and represent Lasso MSA?

[LostDollar]

Does an MAPD reimbursement of all or part of Part B premiums become 1099 income to the Medicare Beneficiary holding the MAPD plan?

 

[sshafran]

Does an MAPD reimbursement of all or part of Part B premiums become 1099 income to the Medicare Beneficiary holding the MAPD plan?

Not to my knowledge.

But I'm not sure why. Maybe they treat it like the ACA subsidy - free $$$$$$$$$$

 

[Scootch]

It's not only taxed if used for non-qualifying expenses, but also subject to a 50% penalty. So let's assume they withdrew $3,000 and didn't use it on qualifying expenses. They pay taxes on $3,000 (let's call it 15% = $450) plus a $1,500 penalty. So they net $1,050.

And just for sh*ts and giggles, let's assume that $3,000 in additional income put their income at the point where some of their Social Security is now taxable. That would further reduce the net of $1,050 in that scenario.

It's just not as cut and dry as you want to make it. There very well may be a benefit to doing what you suggest, but I'd cover all the angles first. Better to know going in than to find out after it's too late.

I didn't state their situation. None of that stuff is a concern and luckily "Medical Expenses" is a pretty broad tax term. With that in mind, I don't see any reason a refund plan would be more beneficial to them.

I've seen some dumb things on the internet... but then there is this.

Since you value specificity so much I'll let you handle my taxes next year.

 

[sman]

I didn't state their situation. None of that stuff is a concern and luckily "Medical Expenses" is a pretty broad tax term. With that in mind, I don't see any reason a refund plan would be more beneficial to them.


Since you value specificity so much I'll let you handle my taxes next year.

I didn’t say you stated their situation. Nor did I say a refund plan was more beneficial. I stated earlier a reason why it could possibly more beneficial based on that topic being introduced on the thread.

In my last post I was pointing out that using the money for non-qualifying expenses was more than just taxable income as you said.

Sounds like you’ve got it all figured it though.

 

[sshafran]

Sounds like you’ve got it all figured it though.

Might be why his family member is looking for another agent...

 

[somarco]

Not all agents know what a Medicare MSA is, nor do they understand how it works.

Of course that does not stop them from selling it, or debating the merits (real or imagined) on a public forum.

Medicare Medical Savings Account (MSA) Plans | Medicare

Using your Medical Savings Account | Medicare

Medicare MSA Plan costs & financial considerations | Medicare

 

[sshafran]

Not all agents know what a Medicare MSA is, nor do they understand how it works.

Of course that does not stop them from selling it, or debating the merits (real or imagined) on a public forum.

Medicare Medical Savings Account (MSA) Plans | Medicare

Using your Medical Savings Account | Medicare

Medicare MSA Plan costs & financial considerations | Medicare

I literally just sold one this morning. I'm a fan of the MSA.

 

[somarco]

I literally just sold one this morning. I'm a fan of the MSA.

My comments were not directed at you . . . and I believe you understand that.

FWIW I sold quite a few HSA's and other HDHP's when I worked the U65 market. Most of my clients liked the concept, very few funded the HSA.

In theory the MSA has merit. So far I have seen more complaints than praises for the Medicare MSA. Hopefully your experience is better.

 

[sshafran]

My comments were not directed at you . . . and I believe you understand that.

FWIW I sold quite a few HSA's and other HDHP's when I worked the U65 market. Most of my clients liked the concept, very few funded the HSA.

In theory the MSA has merit. So far I have seen more complaints than praises for the Medicare MSA. Hopefully your experience is better.

Yes, I do understand that.
--

The biggest issues with the MSA so far have been execution by members/providers.

"Don't pay the doctor upfront - tell them to submit the claim the insurance company first, then wait for them to bill you after the bill is process by lasso. Then, use your money in your Optum account to pay the provider"

You would think the instructions (above) were written in Greek. Plan G is so much easier.

I can enthusiastically say that Lasso has been great any time I've had to call. They are willing to "step in" and help with claims. Impressive.

I've done quite a bit on the "problem prevention" side to try to help the process go smoothly. Today, for the new Lasso client, I printed out 4 provider guides and they are going to the person via snail-mail today -- with instructions, "Give this guide to the doctor's office when you go in"

An ounce of prevention....

 

[somarco]

An ounce of prevention....

Is that covered/reimbursed by the MSA?

Asking for a friend . . .