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Valued Social Butterfly

Re: What do you think about the impending health tax reform?

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Message 31 of 60

GailL1 wrote:



No, it is not because of your pre-existing condition specifically - it is because you do not have a situation where Medicare (the government) gives you "guaranteed issue rights".  Thus Medicare (the government) gives Medigap insurers the right to either deny you coverage or put stipulations on coverage for the pre-existing condition, in some cases. This is because, Medicare (the government) does not want people who have been under Medicare Advantage plans to switch to original Medicare with a Medigap when they get health care costly.

 

Gail I am pretty certain the rules on whether or not Medigap is available at any time without underwriting long predates public Part C of Medicare.
Even if I am wrong about that, the Medigap rule to which you refer is not based on Federal government rules. Whether you can get Medigap outside of the initial enrollment period is based on state law, not a Federal rule. In my state, enrollment is not only guaranteed at any time for any reason but it is also both:
continuous (can sign up or change a Medigap plan any month for any reason effective first of the next month; this is the trick if you have scheduled surgery)
community rated (so I can switch over from public Part C when I am 80 and my favorite doctor retires and I will pay the same as a newbie only 65)
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Valued Social Butterfly

Re: What do you think about the impending health tax reform?

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Message 32 of 60

GailL1 wrote:

 

For medical expenses of $11 - $13,000 per year, you would have to have some other itemized deduction to now get any benefit over the standard deduction + the senior/blind exemption  or even in the tax reform proposal which would give you and your husband MFJ a $24,000 standard deduction.

 

Gail, I am not blind by any means, I only have Macular degeneration in one eye and has not progresses in two years.
So, how can I qualify for for a senior/blind exemption?

 

 

 

 


 

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Valued Social Butterfly

Re: What do you think about the impending health tax reform?

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Message 33 of 60

So, now, both of you Gail and ByronDennis,  realize that I a poor retiree, with a low middle class income. will be hurt by the fact that now my gross income will be up by 13,000 dollars. and therefore I will have to pay higher taxes than before and oh guess what I am one of the losers.?
Really!!!!!!!!!   I believe that both of you instead of quoting % and any other littler facts that you post. better start asking real people as to how much any of this is going to impact people like me.
And Byrondennis, I have even spoken to Medicare about the very  unfair manner in which insurances provide entrance to future Supplemental  beneficiaries.
So. don't come here and say, that this is a Leftist issue, is an issue that will affect many seniors like me. make no mistake about that.
And yes, Gail I really got hit badly in 1986 and the nice things that Reagan did regarding retirements and how any of that affected me. and other niceties that were done at the time.

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Valued Social Butterfly

Re: What do you think about the impending health tax reform?

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Message 34 of 60

rker321 wrote:

I cannot qualify for a Medigap insurance because I happen to have Macular Degeneration that is considered a Pre condition that the insurances don't want to cover.

Another surprise was that if you are a diabetic and take insulin. same situation no Medigap for you.

The pre conditions that the insurances have agreed on, are in some cases not reasonable.

But, there is nothing that anyone can do. 
There are millions of Diabetic that take insulin,  I don't, but the only injection that is given to me is one every 10 weeks.  and the medicine that i use is not even expensive.
Yet, that precludes me to have a Supplemental insurance. which would be more useful to me.
Between me and my husband we spend out of cost about 11-13,000 a year in out of cost between medicines and  co pays. and premiums. and now, not even that will be something that will be able to benefit us.
When all of this is going to stop.? are they trying to get rid of seniors slowly but surely?
They seem to make things more difficult for us every year. When will all of this stop?


 


No, it is not because of your pre-existing condition specifically - it is because you do not have a situation where Medicare (the government) gives you "guaranteed issue rights".  Thus Medicare (the government) gives Medigap insurers the right to either deny you coverage or put stipulations on coverage for the pre-existing condition, in some cases.

 

This is because, Medicare (the government) does not want people who have been under Medicare Advantage plans to switch to original Medicare with a Medigap when they get health care costly.

 

You have the right to always go back to original Medicare but unless you have one of those circumstances which gives you your guaranteed rights, you may not be eligible for a Medicap policy.

 

You keep trying to put this on the insurance companies - it is not - it is the rules of Medicare (the government).

 

For medical expenses of $11 - $13,000 per year, you would have to have some other itemized deduction to now get any benefit over the standard deduction + the senior/blind exemption  or even in the tax reform proposal which would give you and your husband MFJ a $24,000 standard deduction.

 

 

 

 

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Valued Social Butterfly

Re: What do you think about the impending health tax reform?

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Message 35 of 60

rker321 wrote:

Byrondennis. 

Wrong. please tell me how in this world I am not going to be impacted by the fact that Medical deductions will now not be able to be deducted?

I just read  the proposed Tax that passed the House that Medical deductions will not be available.?
I am not rich. and I do pay between Prescription Drugs, co pays, and Premiums   an average of over 11-13 thousand in medical expenses for both of us. We are old people, therefore, no kids to deduct as dependents, no mortgage, and do not have the normal deductions that younger married couple usually have. 

So please Explain to me in layman terms as to how I am not going to be impacted?


Yes, I agree you are in what I would think is a very rare and bad situation. In fact I changed my earlier comment based on reading your comment if you are the person that is only on Original Medicare with no Part D. So see my other response.

 

But if you have no mortgage deductions, no dependent deductions, etc., I do not understand why you would even itemize deductions in the first place. Forgetting tax reform, why not use the standard deduction with the special senior uplift?

 

I suggested you talk to the local unbiased volunteers about the Medigap issue. Someone else there might help on the tax issue

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Valued Social Butterfly

Re: What do you think about the impending health tax reform?

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Message 36 of 60

rker321 wrote:

Today they revealed that the Medical deductions are gone. so, that is one more nail that is being hammered into our coffins.
We all know that seniors depend on that deduction.  and if we cannot deduct our medical expenses, many will suffer. 
We need to contact our senators and Reps and tell them how we feel. and If AARP willing to fight this? Really fight this? If they are, it will be the most positive thing that they can do for seniors.


Tax reform always has some winners and losers.  I lost big time in 1986, the last time major reform was done.

 

Actually, according to the IRS, not very many people take the medical and dental deduction but the few that do have tremendously BIG deduction.  Many of them are able to take the deduction because of long term care - not just nursing home cost but assisted living. Or as in a couple of cases close to my heart - 24/7 health care aids because of severe disabilities.

 

The medical deduction is now available only to taxpayers whose total expenses are above 10 percent of their adjusted gross income and then only if all their itemized deductions are over the standard deduction.

 

Because of that threshold, and because it is available only to people who itemize their deductions, the medical expense deduction is not used by many people — an estimated 8.8 million claimed it on their 2015 taxes, according to the IRS.


But those 8.8 million tax filers claimed an estimated $87 billion in deductions; meaning that those who do qualify for the deduction have VERY high out-of-pocket health costs.

 

Only 30% of ALL taxpayers itemize - the majority of them are in the higher income bracket - those that live in highly taxed states for the SALT deduction, more than one home to increase their mortgage interest deduction, and their property tax deduction, those that make large charitable contributions.  In fact, in listing the top four itemized deductions, medical and dental doesn't make the list.

 

In looking at the senior group as a whole, many don't have enough taxable income to even file a tax return.

 

That's the thing about changing anything in this country, nobody wants to lose a single thing in fact they want more and more - that goes for everybody, individuals, businesses and corporations.  Who really wants to pay taxes anyway?

 

I don't think that this or any reform - taxes, entitlements, etc.- have a chance to pass now or into the future - just for this reason - it is easy to give especially when it doesn't have to be paid for and impossible to take back. 

 

Somewhere down the line, there will be some pain especially for seniors - around 2029 - 2034 comes to mind.

 

 

 

 

 

 

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Valued Social Butterfly

Re: What do you think about the impending health tax reform?

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Message 37 of 60

rker321 wrote:

I cannot qualify for a Medigap insurance because I happen to have Macular Degeneration that is considered a Pre condition that the insurances don't want to cover.

Another surprise was that if you are a diabetic and take insulin. same situation no Medigap for you.

The pre conditions that the insurances have agreed on, are in some cases not reasonable.

But, there is nothing that anyone can do. 
There are millions of Diabetic that take insulin,  I don't, but the only injection that is given to me is one every 10 weeks.  and the medicine that i use is not even expensive.
Yet, that precludes me to have a Supplemental insurance. which would be more useful to me.
Between me and my husband we spend out of cost about 11-13,000 a year in out of cost between medicines and  co pays. and premiums. and now, not even that will be something that will be able to benefit us.
When all of this is going to stop.? are they trying to get rid of seniors slowly but surely?
They seem to make things more difficult for us every year. When will all of this stop?

 


Sorry to hear about your health issues but relative to tax reform, the subject of this Topic, these numbers make you a real outlier (which I know is of no solace).

 

Also you might not realize this but that medical deduction is not going to be as much help to you in 2017 as it has been in the past anyways, whether or not they change the tax law, because the income threshold above which you can deduct medical expenses has been increased to 10% this year from 7.5% last year (and I think around 3%-5% before the Obamacare law).

 

But forget tax reform. I knew there are states where someone who wants a private supplement has to be underwritten but I did not realize there was any state where you could be turned down altogether. That's the law that needs to be reformed, not the tax law. There has been a proposal to reform Medicare in a way that would solve your problem but it has been held up in Congress for the last six years.

 

Have you been to a local senior center or like facility and talked to one of the Medicare volunteers that know the local rules and know various types of assistance that are available?  I assume that for some reason (whatever the reason it is doesn't matter), you also don't want a public Part C plan or do not have one available to you. And are you both only on Original Medicare? Bring the answers to the senior center and talk to them.

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Valued Social Butterfly

Re: What do you think about the impending health tax reform?

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Message 38 of 60

Byrondennis. 

Wrong. please tell me how in this world I am not going to be impacted by the fact that Medical deductions will now not be able to be deducted?

I just read  the proposed Tax that passed the House that Medical deductions will not be available.?
I am not rich. and I do pay between Prescription Drugs, co pays, and Premiums   an average of over 11-13 thousand in medical expenses for both of us. We are old people, therefore, no kids to deduct as dependents, no mortgage, and do not have the normal deductions that younger married couple usually have. 

So please Explain to me in layman terms as to how I am not going to be impacted?

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Valued Social Butterfly

Re: What do you think about the impending health tax reform?

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Message 39 of 60

rker321 wrote:

Today they revealed that the Medical deductions are gone. so, that is one more nail that is being hammered into our coffins.
We all know that seniors depend on that deduction.  and if we cannot deduct our medical expenses, many will suffer. 
We need to contact our senators and Reps and tell them how we feel. and If AARP willing to fight this? Really fight this? If they are, it will be the most positive thing that they can do for seniors.


You might want to read up on the subject, including some of the comments on this thread. The only seniors that might suffer relative to this issue are very rich people who "make" a lot of money in retirement or one of the very very few people who for whatever reason are only on Original Medicare with no Part D (I added this underlined section after reading about a person who was turned down for Medigap)

  • Under current law, the vast majority of all people in the United States and a large majority of seniors do not even itemize deductions (primarily because the oldest among us "make" so little money and most of the rest of us middle-aged seniors have paid off our mortgages).
  • For the relatively few seniors that do itemize deductions, under current law they don't even get a medical deduction unless their medical costs exceed 10% of "income" so no one is itemizing just becasue of medical deductions (primarily because Medicaid, Cadillac group retiree health plans, the annual OOP in Part C, and first dollar coverage Medigap policies keep medical expenses so low that even if they exceed the 10% by a few thousand, it is still way less than the standard deduction
  • For the relative handful of seniors that make a lot of money in retirement, the more you make the more likely you are to itemize but the less likely you are to have medical expenses that exceed 10% (because if you are lucky enough to "make" a lot of money in retirement, the 10% threshhold keeps getting higher)

 

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Valued Social Butterfly

Re: What do you think about the impending health tax reform?

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Message 40 of 60

I cannot qualify for a Medigap insurance because I happen to have Macular Degeneration that is considered a Pre condition that the insurances don't want to cover.

Another surprise was that if you are a diabetic and take insulin. same situation no Medigap for you.

The pre conditions that the insurances have agreed on, are in some cases not reasonable.

But, there is nothing that anyone can do. 
There are millions of Diabetic that take insulin,  I don't, but the only injection that is given to me is one every 10 weeks.  and the medicine that i use is not even expensive.
Yet, that precludes me to have a Supplemental insurance. which would be more useful to me.
Between me and my husband we spend out of cost about 11-13,000 a year in out of cost between medicines and  co pays. and premiums. and now, not even that will be something that will be able to benefit us.
When all of this is going to stop.? are they trying to get rid of seniors slowly but surely?
They seem to make things more difficult for us every year. When will all of this stop?


 

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