Hidden Tax Benefits of Long-term Care Planning

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Hidden Tax Benefits of Long-term Care Planning

By Tom Strangstalien, Insurance Advisor

We’re well into the tax season, filing our returns for 2024 and planning for the 2025 tax year, and this is a perfect time to explore the hidden tax advantages offered by diligent long-term care planning.

Some things to consider:

  • Did you know tax-qualified long-term care policies are tax deductible?
  • Do you have funds accumulated in your Health Savings Account that you’re not sure what to do with?
  • Did you know that you can pay premiums for a tax-qualified long-term care insurance policy with your HSA funds?
  • Did you know that any benefits paid out by a qualified long-term care insurance policy are not taxable as income?
  • Are you looking for more tax deductions?

Tax-qualified long-term care insurance premiums can be combined with other medical expenses and be deductible for those who itemize their returns. The sum of medical expenses must exceed 7.5% of one’s adjustable gross income to be deductible. If this is not the case, the premiums alone can be deductible. There are limits on the amount of the premiums that are deductible, based on a taxpayer’s age and adjustable gross income. For this tax year (2024), anyone over the age of 70 can deduct up to $5,880 on their federal tax return. A taxpayer can deduct premiums as medical expenses OR deduct the premiums alone – not both.

To be considered qualified, these policies must adhere to the guidelines established by the Health Insurance Portability and Accountability Act (HIPAA) of 1996. This means they must provide coverage for medically necessary care for individuals who are chronically ill and unable to perform at least two activities of daily living such as bathing, dressing, or eating, or who require supervision due to cognitive impairments.

2024 Qualified Long-Term Care Insurance Premium Deduction Limits 

Long-term care insurance premiums can also be deducted on your state tax return. Each state varies with the qualifications and limits that are deductible, so you should consult a financial advisor or tax professional in your state.

If you have accumulated funds in your health savings account, purchasing long-term care protection can be a smart place to use these funds. Not only are you purchasing long-term care insurance with “pre-tax” dollars, any benefits received by the policy will be tax free! It is important to know that if HSA funds are used to pay premiums, these premiums are not eligible to be deductible on your federal or state tax return as mentioned above.

Benefits received by a qualified long-term care policy are not taxable as income. This can also be the case with the increasingly popular “hybrid life insurance policies” that contain long-term care insurance benefits. These hybrid policies can be viewed as a win-win-win and there are many plans available. These policies offer a life insurance amount that is income tax free upon death, an accelerated long-term care benefit where benefits are not taxed as income (subject to the IRS 2025 per diem daily benefit of $420), and a cash value component where cash value amounts of the contract accumulate on a tax deferred basis.

I’m a big fan of the hybrid life insurance policies that offer long-term care benefits. In many cases where I have assisted in long-term care insurance planning, we have utilized an “indexed universal life” policy. Let’s consider the purchase of a $1,000,000 contract. One of three things can happen. If the policy is used for long- term care expenses, most of the policy amount can be used to pay the expenses tax free. When the policyholder passes away, the designated beneficiary will receive the unused portion of the $1,000,000 on an income tax free basis. Lastly, you can choose to access the cash value of the contract if needed in the form of a withdrawal or loan (tax treatment will vary based on many factors). The return on the funds in the cash value account is contingent on the performance of selected stock market indexes. A better alternative to self-funding long-term care? In many cases a resounding yes!

There are numerous tools and options available for long-term care planning. If you want to explore your personal long-term care plan to determine your best course of action, do not hesitate to reach out to the WisMed Assure team at insurance@wismedassure.org, or call 608.442.3810. 

Picture of Tom Strangstalien

Tom Strangstalien

Insurance Advisor

Reach out to me to learn more. You can contact me at tom.strangstalien@wismedassure.org or 608.442.3730.

Send me an email!
Picture of Tom Strangstalien

Tom Strangstalien

Insurance Advisor

Reach out to me to learn more. You can contact me at tom.strangstalien@wismedassure.org or 608.442.3730.

Send me an email!

Note: This article is for informational purposes only and should not be considered as insurance advice related to your specific policy or situation. Please consult with a qualified insurance advisor or professional before making any policy decisionsFull disclaimer and contact information.

Working with WisMed Assure Helps Keep Medical Malpractice Rates in Wisconsin Low

By Shawna Bertalot, CIC, ACI, WisMed Assure President

Some good news for Wisconsin physicians, certified registered nurse anesthetists (CRNA), and the hospitals and clinics that employ them. At the last meeting of The Board of Governors of the Injured Patients and Families Compensation Fund (IPFCF) in December 2024, the Actuarial Committee made the recommendation to keep rates the same for the IPFCF’s Fiscal Year July 1, 2025 to July 1, 2026. The Board voted and approved that recommendation. The rates are not finalized until passing the Legislative approval process with the joint committee on finance. The deadline for that approval process is mid-April and we expect the rates to be approved.

In 2020, the Wisconsin Medical Society (WisMed) proposed the idea of a “premium holiday” to the IPFCF due to the impact and uncertainty of the COVID pandemic. The result was three years of no IPFCF premiums from July 1, 2020 to July 1, 2024. This afforded significant savings to physician practices, hospitals, and health systems in a time of crisis. When premium rates were resumed in 2024, they were kept at the same level as prior to the premium holiday. While it is important to keep medical malpractice cost low, it is critical to keep the IPFCF financially healthy. WisMed understands this balance and works closely with its insurance agency, WisMed Assure, to share knowledge and support with the IPFCF.

WisMed has two appointed seats on the IPFCF Board, which currently includes three physicians. WisMed board members and staff participate in several committees of the IPFCF and have long advocated for reasonable rates that keep the IPFCF financially sound but still provide incredible value.

There are only eight states in the U.S. that have excess medical professional liability funds, or “Patient Compensation Funds” and none of them offer the unlimited excess coverage for economic damages that Wisconsin’s IPFCF does. WisMed Assure works closely with the IPFCF to ensure proper coverage. Thanks to decades of advocacy by WisMed and others to keep the IPFCF strong and the litigation environment favorable to health care professionals, Wisconsin’s medical malpractice rates are amongst the lowest in the country. Because revenue and profits earned by WisMed Assure support the advocacy work of the Wisconsin Medical Society, physicians who purchase their insurance from WisMed Assure are helping us advocate to keep Wisconsin one of the best states to practice medicine.

For assistance with your medical professional liability insurance, please reach out to the WisMed Assure Service Team at insurance@wismedassure.org, or call 608.442.3810. 

Picture of Shawna Bertalot, CIC

Shawna Bertalot, CIC

President, Wisconsin Medical Society Insurance and Financial Services

Reach out to me to learn more. You can contact me at shawna.bertalot@wismedassure.org or 608.442.3738.

Send me an email!
Picture of Shawna Bertalot, CIC

Shawna Bertalot, CIC

President, Wisconsin Medical Society Insurance and Financial Services

Reach out to me to learn more. You can contact me at shawna.bertalot@wismedassure.org or 608.442.3738.

Send me an email!

Note: This article is for informational purposes only and should not be considered as insurance advice related to your specific policy or situation. Please consult with a qualified insurance advisor or professional before making any policy decisionsFull disclaimer and contact information.

Tenants Improvements and Betterments: Is Your Clinic Properly Insured?

By Laura Weber, Senior Large Account Director

You’ve invested time and money in making your medical office the perfect space for your practice, but who is responsible for insuring those upgrades? If you lease your office, clinic, or storage space, it’s important to understand per the lease terms who has responsibility for covering any permanent installations and upgrades you make to the property. These are referred to as Tenant Improvements and Betterments (TIB) and can be insured under your Business Owners policy.  

What’s included in the definition of TIBs?

TIBs are upgrades you’ve made to your leased space that can’t be taken with you when you leave. From the Hartford Business Owners policy, TIBs include fixtures, alterations, installations, or additions made part of the building or structure that you occupy but do not own and cannot legally remove.

You’ll want to consider:

  • New flooring, lighting, and built-in fixtures
  • Walls, cabinetry, and structural additions
  • Any other permanent modifications that enhance your space

Often, these improvements won’t be covered by the building owner’s insurance. Most lease agreements make the tenant responsible for insuring the upgrades they install. 

How to make sure you’re covered:

TIBs are added to your Business Owners Policy (BOP) as part of your Business Personal Property coverage. This means your property limit should include the replacement cost of:

  • All office equipment—computers, medical devices, and furniture
  • Any tenant improvements and betterments you’ve installed
  • Leased equipment and property under your care

Even if you haven’t moved into the space yet, your property limit should include the replacement cost of any improvements or betterments you’ve made in getting it ready for occupancy.

Contact the WisMed Assure Service Team at insurance@wismedassure.org, or call 608.442.3810 for a policy review. We’ll help you assess your business property needs and secure the right protection.


Note: This article is for informational purposes only and should not be considered as insurance advice related to your specific policy or situation. Please consult with a qualified insurance advisor or professional before making any policy decisionsFull disclaimer and contact information.

Picture of Laura Weber

Laura Weber

Senior Large Account Director

Reach out to me to learn more. You can contact me at laura.weber@wismedassure.org or 608.442.3897.

Send me an email!
Picture of Laura Weber

Laura Weber

Senior Large Account Director

Reach out to me to learn more. You can contact me at laura.weber@wismedassure.org or 608.442.3897.

Send me an email!

WisMed Assure Implements Employee Navigator to Enhance Benefits Administration

By Martin Hurst, Insurance Service Representative

WisMed Assure is taking a significant step in modernizing benefits administration for our employee benefits clients by implementing Employee Navigator (a leading benefits management platform designed to streamline enrollment, improve efficiency, and enhance overall experience for both employers and employees). This cloud-based platform serves as a central hub for benefits management, integrating with insurance carriers, payroll systems, and HR software to create a seamless and efficient process. Employers benefit from real-time access to benefits data, automated reporting, and built-in compliance tools that help track eligibility, manage ACA reporting, and ensure timely communication of benefits updates.

Your employees gain access to an intuitive self-service portal where they can review, select, and manage their benefits, update personal information, and retrieve essential HR documents anytime. By integrating this platform, WisMed Assure is providing its employee benefits clients with a more organized, automated, and user-friendly approach to benefits administration, reinforcing our commitment to innovation and efficiency while enhancing the experience for both employers and employees.

A Phased Approach for a Smooth Transition

To ensure a seamless transition, WisMed Assure is rolling out Employee Navigator in phases. This approach allows us to provide personalized support, address any challenges proactively, and tailor the implementation to best meet the needs of our clients. Our team is committed to making this transition as smooth as possible, offering training and ongoing assistance to ensure that both employers and employees can maximize the benefits of this new system.

As we continue this rollout, we look forward to enhancing the benefits administration experience for the groups we serve, helping them save time, reduce administrative burdens, and focus on what matters most—their business and employees.

To learn more about Employee Navigator, please contact Martin Hurst at martin.hurst@wismedassure.org or call 608.442.3728.

Picture of Martin Hurst

Martin Hurst

Insurance Service Representative

Reach out to me to learn more. You can contact me at martin.hurst@wismedassure.org or 608.442.3728.

Send me an email!
Picture of Martin Hurst

Martin Hurst

Insurance Service Representative

Reach out to me to learn more. You can contact me at martin.hurst@wismedassure.org or 608.442.3728.

Send me an email!

Note: This article is for informational purposes only and should not be considered as insurance advice related to your specific policy or situation. Please consult with a qualified insurance advisor or professional before making any policy decisions. Full disclaimer and contact information.

Good Samaritan Law

By Jensen Peck, Business and Professional Insurance Executive

Good Samaritan Laws in Wisconsin are vital for protecting physicians who provide emergency care outside of a clinical setting. These laws encourage medical professionals to offer immediate assistance in emergencies without the fear of legal recourse, allowing medical professionals to extend their care beyond hospitals and clinics. However, it is important to be aware of when the law protects you and when it may not apply.

Wisconsin enacted its first Good Samaritan statue in 1963, granting immunity from civil liability to physicians and nurses who, in good faith, provided emergency care at the scene of an emergency. This legislation aims to encourage medical professionals to assist in emergency situations without fear of legal implications. By 1977 the statue extended protection to any individual providing emergency care in good faith at the scene of an emergency or accident, recognizing the importance of immediate assistance.

Under Wisconsin law, physicians who provide emergency care at the scene of an emergency are generally immune from civil liability, as long as they act in good faith and without gross negligence. This means that if a physician acts within the bounds of their training and does not exhibit reckless disregard for the safety of the individual they are helping.

There are several scenarios where Wisconsin’s Good Samaritan law does not protect physicians in emergency situations.

  • Existing Duty to Treat: If a physician already has a duty to provide care, such as in a hospital or clinical setting or volunteering at an event as a physician on staff, where a doctor-patient relationship exists, the law’s protections do not apply.
  • Gross Negligence or Willful Misconduct: The immunity is void if the physician’s actions are found to be grossly negligent or are intentionally harmful.
  • Compensated Care: If the physician receives compensation for the care provided during the emergency, this could nullify the Good Samaritan protections.
  • Beyond Scope of Training: Acting outside the scope of their medical training and expertise may also remove liability protections.

Wisconsin’s Good Samaritan laws embody the state’s commitment to public health and well-being, empowering physicians to act quickly and selflessly in emergency situations. This article is meant to provide general information about Wisconsin’s Good Samaritan law protection. This is not legal advice. 

If you have questions about a specific scenario, we recommend you talk with your clinic manager, professional liability insurance agent, or carrier about how that coverage would respond. 

If you are a member of Wisconsin Medical Society and need legal advice you can utilize the Legal Hotline.

Picture of Jensen Peck

Jensen Peck

Business and Professional Insurance Executive

Reach out to me to learn more. You can contact me at jensen.peck@wismedassure.org or 608.442.3731.

Send me an email!
Picture of Jensen Peck

Jensen Peck

Business and Professional Insurance Executive

Reach out to me to learn more. You can contact me at jensen.peck@wismedassure.org or 608.442.3731.

Send me an email!

Note: This article is for informational purposes only and should not be considered as insurance advice related to your specific policy or situation. Please consult with a qualified insurance advisor or professional before making any policy decisions. Full disclaimer and contact information.

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Last-Minute Money Moves for 2024 Taxes

By Mark Ziety, CFP®, AIF®, Financial Advisor, WisMed Financial

As the April 15 tax deadline approaches, physicians still have opportunities to adjust and improve their 2024 tax returns.

Contribute to a Health Savings Account

If you have a high-deductible health plan (HDHP), you may be eligible to contribute to a Health Savings Account (HSA). For 2024, the contribution limits are $4,150 for individuals and $8,300 for families. Contributions can be made until the tax filing deadline. Just remember to reduce your contribution by the amount your employer contributed. HSA contributions are tax-deductible, growth is tax deferred, and withdrawals used for qualified medical expenses are tax-free. This triple tax advantage makes HSAs a powerful tool for health care costs and reducing your tax burden. As a bonus, after age 65 you can use the HSA penalty free for non-health care spending too; you’ll just pay income tax on the withdrawals.

Max Out Your IRA Contributions

The IRS allows you to make contributions to your Individual Retirement Account (IRA) for the 2024 tax year until the filing deadline (April 15, 2025). If you haven’t hit the maximum contribution limits yet ($7,000 for those under 50 and $8,000 for those 50 and older or your earned income if less), this is a great way to reduce your taxable income while boosting your retirement savings. However, most physicians with access to employer retirement plans will find they cannot deduct the IRA contribution if their modified adjusted gross income (MAGI) exceeds $77,000 single or $123,000 married filing joint. If that’s your case, use the next strategy: the backdoor Roth IRA instead.

Backdoor Roth IRA Contributions

For higher-income earners, consider one of the most beneficial tax strategies: the backdoor Roth contribution. You can contribute to a traditional IRA by April 15 for 2024 (whether deductible or not) and then convert those funds to a Roth IRA. This move allows you to get money into a Roth IRA where your earnings will grow tax-free in the future. See the full Backdoor Roth IRA article for more.

Self-Employed Income? Max Your Retirement Contributions

If you’re self-employed or have 1099 income, you still have time to contribute to a SEP IRA or individual 401(k) for 2024. These plans allow for higher contribution limits compared to other retirement plans, and contributions are tax-deductible. You can contribute up to 25% of your income or $66,000 (whichever is less) into either plan, and the deadline to set up and contribute is the same as your tax filing deadline, including any extensions.

Contribute to a Wisconsin Edvest 529 Plan

Wisconsin taxpayers can deduct Edvest contributions up to $5,000 per beneficiary from their state income tax return. If you make the contribution for 2024 by April 15, 2025, be sure to request that Edvest code for last year. Tip! The tax deduction is per beneficiary and the beneficiary can be anyone in the family. Savvy savers open multiple accounts and name each member of the family as a beneficiary, including parents, to maximize the tax deduction. When the child is ready for college, simply change the beneficiary.

These last-minute moves, before filing your 2024 tax return, can help you reduce your tax bill and position yourself for financial success in the coming year. For personalized help eliminating debt, investing smart and securing retirement, please contact Mark Ziety, CFP®, AIF® 608.442.3750.

Mark Ziety, CFP®, AIF®

WisMed Financial, Inc. part of the Wisconsin Medical Society

Picture of Mark Ziety, CFP®, AIF®

Mark Ziety, CFP®, AIF®

Executive Director of WisMed Financial
Certified Financial Planner™ Professional

Reach out to me to learn more. You can contact me at mark.ziety@wismedfinancial.org or 608.442.3750.

Book an appointment with me!
Picture of Mark Ziety, CFP®, AIF®

Mark Ziety, CFP®, AIF®

Executive Director of WisMed Financial
Certified Financial Planner™ Professional

Reach out to me to learn more. You can contact me at mark.ziety@wismedfinancial.org or 608.442.3750.

Book an appointment with me!

Note: This article is for informational purposes only and should not be considered as financial or tax advice. Please consult with a qualified financial advisor or tax professional before making any financial decisions. Full disclosures.

2025 Volume 1

Working with WisMed Assure Helps Keep Medical Malpractice Rates Low in Wisconsin

By Shawna Bertalot, CIC, ACI, WisMed Assure President

Clipboard with documents about medical malpractice and gavel.

Some good news for Wisconsin Physicians, Certified Registered Nurse Anesthetists (CRNA), and the hospitals and clinics that employ them. At the last meeting of The Board of Governors of the Injured Patients and Families Compensation Fund (IPFCF) in December 2024, the Actuarial Committee made the recommendation to keep rates the same for the IPFCF’s Fiscal Year July 1, 2025 to July 1, 2026. 

Read more…


Last-Minute Money Moves for 2024 Taxes

By Mark Ziety, CFP®, AIF®, Senior Advisor, WisMed Financial

Road sign that reads 'Smart Money next exit'

As the April 15 tax deadline approaches, physicians still have opportunities to adjust and improve their 2024 tax returns.

Contribute to a Health Savings Account If you have a high-deductible health plan (HDHP), you may be eligible to contribute to a Health Savings Account (HSA). For 2024, the contribution limits are $4,150 for individuals and $8,300 for families. Contributions can be made until the tax filing deadline.

Read more…


Hidden Tax Benefits of Long-term Care Planning

Documents on table for the premise of calculating the amount needed for retirement and Long Term Health Care.

By Tom Strangstalien, Insurance Advisor

We’re well into the tax season, filing our returns for 2024 and planning for the 2025 tax year, and this is a perfect time to explore the hidden tax advantages offered by diligent long-term care planning.

Read more…


Tenants Improvements and Betterments, Is Your Clinic Properly Insured?

Clinic renovation

By Laura Weber, Senior Large Account Director

If you rent space for your office, clinic, or even just for storage, it’s important to understand per the lease terms which party (lessee versus lessor) is responsible for covering property at the location. The agreement with the building owner should specify:  if a property damage occurs at the rented location, who is responsible for securing insurance to cover walls, flooring, permanent fixtures, including any updates you may have made to the property whether fixed or removable.

Read more…


WisMed Assure Implements Employee Navigator to Enhance Benefits Administration

Person presents employee benefits options on a digital interface.

By Martin Hurst, Insurance Service Representative

WisMed Assure is taking a significant step in modernizing benefits administration for our employee benefits clients by implementing Employee Navigator (a leading benefits management platform designed to streamline enrollment, improve efficiency, and enhance overall experience for both employers and employees). This cloud-based platform serves as a central hub for benefits management, integrating with insurance carriers, payroll systems, and HR software to create a seamless and efficient process.

Read more…


Good Samaritan Law

By Jensen Peck, Business and Professional Insurance Executive

person helping jogger in distress

Good Samaritan Laws in Wisconsin are vital for protecting physicians who provide emergency care outside of a clinical setting. These laws encourage medical professionals to offer immediate assistance in emergencies without the fear of legal recourse, allowing medical professionals to extend their care beyond hospitals and clinics. However, it is important to be aware of when the law protects you and when it may not apply.

Read more…


Common Moonlighting Scenarios – What’s Covered By Your Malpractice Insurance?

By Jensen Peck, Business and Professional Insurance Executive

As the insurance agency for the Wisconsin Medical Society, we receive calls often from members and client physicians who are considering supplemental employment (side gigs) outside of their regular scope of practice. They’re often told to “not to worry about” the liability because it’s either covered by the employer or “minimal exposure.” Fortunately, most physicians recognize this may not be true and it’s best to receive input from an insurance agency that specializes in health care liability. Let’s review a few of the more common scenarios and important questions that need to be answered to confirm potential malpractice exposures are covered.

Physicians serving in medical director or other supervisory roles in medispas, EMS services, nursing homes, and other new health care ventures have become common in recent years. While these positions can offer professional growth and financial reward, they also can present new and unprecedented risks. As a medical director, you are responsible for the overall medical practices within the facility, even if you are not directly performing the procedures. While the staff—typically non-physicians such as estheticians, nurses, and nurse practitioners—administers treatments, the medical director is accountable for ensuring that all procedures are performed according to the highest medical standards. If a patient suffers harm from a procedure such as a Botox injection requiring revision or an adverse reaction to treatment or medication, the medical director can be named in a lawsuit, regardless of whether they administered the procedure or were even on site at the time.

Another scenario is physicians who volunteer for Federally Qualified Healthcare Centers (FQHC) and free clinics. FQHCs are typically nonprofit organizations that provide primary care services to underserved populations, often funded by federal grants. Physicians who practice part-time at an FQHC are often covered for malpractice insurance through the Federal Tort Claims Act (FTCA). If a malpractice claim is filed, the FQHC will typically provide legal defense under the FTCA, meaning the FQHC will arrange and pay for legal representation in case of a lawsuit. If a claim results in a settlement or judgment, the FTCA ensures that the U.S. government will cover the financial responsibility up to the applicable limits. A free clinic is a community-based health care facility that provides medical services at either low or no cost to individuals who are uninsured, underinsured, or otherwise unable to pay for care. Physicians who volunteer at free clinics are not given coverage from the FTCA. Regardless of compensation, physicians are required to get traditional malpractice insurance to cover their work done at these clinics – whether it’s part-time or full-time. So, it’s very important to be aware if the clinic is a FQHC or not. A free clinic isn’t always an FQHC.  

There are many other questions you should ask yourself, your employer, and your malpractice insurance experts at WisMed Assure that are unique to your scenario. It’s important to have a clear understanding of your role and a written description of your responsibilities. These duties will likely fall in the category of either administrative or direct patient care. You must confirm if your or your employer’s insurance policies will cover all of your responsibilities. We urge you to reach out to us! Contact the WisMed Assure team at insurance@wismedassure.org or call 608.442.3810. We are here to serve the health care professionals who serve our communities. We will explore the application of Good Samaritan laws in a future issue of the Antidote.

Please note: Wisconsin Medical Society members have access to our legal assistance hotline for additional discussion about these topics.

Picture of Jensen Peck

Jensen Peck

Business and Professional Insurance Executive

Reach out to me to learn more. You can contact me at jensen.peck@wismedassure.org or 608.442.3731.

Send me an email!
Picture of Jensen Peck

Jensen Peck

Business and Professional Insurance Executive

Reach out to me to learn more. You can contact me at jensen.peck@wismedassure.org or 608.442.3731.

Send me an email!

Note: This article is for informational purposes only and should not be considered as insurance advice related to your specific policy or situation. Please consult with a qualified insurance advisor or professional before making any policy decisions. Full disclaimer and contact information.

Dental Benefits with Medicare Advantage

By Martin Hurst, Insurance Service Representative

Medicare provides essential health care coverage for individuals over 65, but it does not cover routine dental services such as cleanings, exams, fillings, or dentures. For those in need of dental care, there are a couple options to enhance your Medicare coverage. You can consider Medicare Advantage plans that include dental benefits or opt for a standalone dental insurance plan.

While Medicare Advantage plans can be beneficial, they aren’t the best choice for everyone. These plans often face criticism due to having limited provider networks, higher out-of-pocket costs, and a lack of transparency. These issues can restrict access to care and may provide fewer benefits than expected. It’s important to note that enrolling in a Medicare Advantage plan typically means losing your Medicare supplement plan.

When considering dental plans, we recommend assessing your individual needs and determining the total cost, (including premiums, deductibles, and potential copayments) as well as any waiting periods for certain procedures. Waiting periods for major dental procedures, like crowns or dentures, may apply, and it’s essential to understand these requirements when choosing a plan. For example, treatments like wisdom teeth removal may have waiting periods before coverage kicks in. For individuals with Medicare Supplement plans (Medigap), dental coverage can be added, or separate dental insurance can be purchased. However, it’s important to check whether your preferred dentists are included in a Medicare Advantage plan’s network, because some plans may limit which provider you can visit. As your dental needs increase, it’s vital to carefully consider all available options to ensure both immediate and long-term coverage.

I recently worked with a client who had been enrolled in a Medicare Supplement plan for several years. His dental needs had changed, and he needed his wisdom teeth removed in the near future, which is considered major dental surgery not typically covered by basic dental plans. After reviewing a variety of dental coverage options based on his specific needs, we found several plans that provided coverage for surgical extractions, each with different waiting periods and premiums. One plan had a 12-month waiting period before covering such procedures, while another had no waiting period, but came with a higher premium. By carefully weighing his options, we helped him find a plan that balanced cost with timely coverage, ensuring he was prepared for his dental needs.

To learn more about Medicare and dental insurance options, please contact Martin Hurst at martin.hurst@wismedassure.org or call 608.442.3728.

 

Picture of Martin Hurst

Martin Hurst

Insurance Service Representative

Reach out to me to learn more. You can contact me at martin.hurst@wismedassure.org or 608.442.3728.

Send me an email!
Picture of Martin Hurst

Martin Hurst

Insurance Service Representative

Reach out to me to learn more. You can contact me at martin.hurst@wismedassure.org or 608.442.3728.

Send me an email!

Note: This article is for informational purposes only and should not be considered as insurance advice related to your specific policy or situation. Please consult with a qualified insurance advisor or professional before making any policy decisions. Full disclaimer and contact information.

PAYE & ICR Plans Reopening for Student Loan Borrowers

By Mark Ziety, CFP®, AIF®, Financial Advisor, WisMed Financial

The Pay As You Earn (PAYE) and Income Contingent Repayment (ICR) plans will reopen in mid-December under an Interim Final Rule. For borrowers forced into forbearance under the Saving on a Valuable Education (SAVE) repayment plan, should you switch plans? Let’s find out.

Focusing on SAVE vs. PAYE only

ICR is typically only used by parent borrowers with Parent Plus loans or consolidated Parent Plus loans. Income Based Repayment (IBR) is also available for borrowers, but the payment amount and treatment of interest are equal to or substandard to PAYE and SAVE plans. Therefore, this article will focus on SAVE vs. PAYE.

Problems with SAVE

As of this writing, borrowers in the SAVE plan have been placed in forbearance with no interest, no payment, and no progress toward loan forgiveness. It’s anticipated this forbearance will last well into 2025.

Making progress toward loan forgiveness

There are two options currently.

  • Switch from SAVE to a different payment plan, like PAYE, with required payments and progress toward loan forgiveness.
  • Anticipate using the PSLF Buyback program later to complete the 120 payments needed for forgiveness (assuming this program can be used to buyback months for the current forbearance.)

Comparing SAVE vs PAYE

  • Payment: Monthly payment under SAVE is typically lower than PAYE. The exception is at high income levels. The PAYE payment rises with higher income, but it is capped at the 10-year standard payment. The SAVE payment rises with higher income uncapped.
  • Interest: For those with relatively low income compared to their debt, the SAVE plan is often better than PAYE. The SAVE plan prevents interest from accruing when the monthly payment does not cover the interest. In contrast, unpaid interest accrues under the PAYE plan until it accumulates to 10% of the loan amount.
  • Length of Repayment: Loan forgiveness for borrowers that don’t qualify for Public Service Loan Forgiveness (PSLF) takes 20 years under PAYE. Under SAVE, forgiveness takes 20 years for undergrad loans, 25 years for graduate loans, or 10 years if the original amount borrowed was $12,000 or less.

Should you switch?

Everyone needs to run their own calculation to see what makes sense for their situation. Many borrowers will benefit by sticking with the SAVE plan if they are working for a government or 501(c)3 non-profit organization, assuming the PSLF Buyback program can be used to gain credit for the current forbearance later. For those with high income and/or their employer doesn’t qualify them for PSLF, switching to PAYE might be worthwhile.

For personalized help eliminating debt, investing smart and securing retirement, please contact Mark Ziety, CFP®, AIF® 608.442.3750.

Mark Ziety, CFP®, AIF®

WisMed Financial, Inc. part of the Wisconsin Medical Society

Picture of Mark Ziety, CFP®, AIF®

Mark Ziety, CFP®, AIF®

Executive Director of WisMed Financial
Certified Financial Planner™ Professional

Reach out to me to learn more. You can contact me at mark.ziety@wismedfinancial.org or 608.442.3750.

Book an appointment with me!
Picture of Mark Ziety, CFP®, AIF®

Mark Ziety, CFP®, AIF®

Executive Director of WisMed Financial
Certified Financial Planner™ Professional

Reach out to me to learn more. You can contact me at mark.ziety@wismedfinancial.org or 608.442.3750.

Book an appointment with me!

Note: This article is for informational purposes only and should not be considered as financial or tax advice. Please consult with a qualified financial advisor or tax professional before making any financial decisions. Full disclosures.