Social Security & Medicare Planning Flashcards

A client receives Social Security disability benefits (SSDI). At full retirement age, those benefits automatically:

Answer: Convert to retirement benefits in the same amount

At full retirement age, SSDI benefits automatically convert to Social Security retirement benefits of the same amount without any action required by the beneficiary.

For a married couple filing jointly, what combined income threshold causes up to 85% of Social Security benefits to be taxable?

Answer: $44,000

For married couples filing jointly, up to 85% of Social Security benefits are taxable when combined income exceeds $44,000.

Medicare Part B covers which of the following services?

Answer: Outpatient physician visits and preventive services

Medicare Part B covers outpatient services including physician visits, lab tests, durable medical equipment, and preventive screenings; inpatient hospital care is Part A.

The Social Security delayed retirement credit (DRC) increases benefits by what percentage per month of delay past full retirement age?

Answer: 2/3 of 1%

The delayed retirement credit increases benefits by 2/3 of 1% per month (8% per year) for each month benefits are deferred past full retirement age up to age 70.

A client asks about the Medicare IRMAA appeals process. Which life-changing event would qualify for a reduction in IRMAA surcharges?

Answer: Marriage, divorce, or death of a spouse

Life-changing events such as marriage, divorce, death of a spouse, retirement, or loss of income-producing property can qualify a beneficiary to request a lower IRMAA based on more recent income.

Which statement correctly describes the Social Security 'restricted application' strategy as it applies today?

Answer: It is only available to those born on or before January 1, 1954

The restricted application (claim spousal only while deferring one's own benefit) was grandfathered for those born on or before January 1, 1954, who reached FRA; all others lost access under the BBA 2015.

A Medicare beneficiary enrolled in a Medicare Advantage plan wants to switch to Original Medicare with a Medigap policy. Which risk should the financial consultant highlight?

Answer: Potential denial of Medigap coverage due to medical underwriting outside guaranteed issue periods

Outside of guaranteed issue rights, Medigap insurers in most states can use medical underwriting to deny coverage or charge higher premiums, making switching from MA to Medigap potentially costly or impossible.