The Underrated Retirement Benefits of a Michigan HSA You Need to Know About

As I work with clients in the state, I think a quick background on HSA's is needed again.

Retirement planning is a critical aspect of financial management, and people have differing opinions on the best retirement account to choose. While some believe that 401(k) plans are the best due to the employer match on contributions, others argue that Roth IRA's tax-free withdrawals make it a better choice.  

However, there's one retirement account that's often neglected in such discussions – and that is a Michigan Health Savings Accounts (HSAs). Even though HSAs aren't classified as retirement accounts, they're becoming popular among savers due to the exceptional benefits they offer. Here's what you need to know about HSAs to determine if it's the right fit for your retirement planning. 

 

Understanding the Mechanisms of a Michigan Health Savings Accounts (HSAs) 

Health Savings Accounts (HSAs) are an attractive option for people who want to save for healthcare expenses, and in recent times, for retirement costs too. The account works by allowing individuals to make tax-advantaged contributions, which can be withdrawn at any time. However, to be eligible to contribute to an HSA, you must have a qualifying health insurance plan. 

For the current year of 2023', individuals with an individual health plan that has a deductible of $1,500 or more can contribute up to $3,850 to their HSA, while those with a family plan that has a deductible of $3,000 or more can contribute up to $7,750. If you're aged 55 or older, you can add an extra $1,000 to these limits. 

 

Advantages of Utilizing a Michigan Health Savings Account (HSA) for Saving 

Health Savings Accounts (HSAs) offer a range of benefits, including three significant tax advantages. Firstly, the contributions you make to an HSA reduce your taxable income for the year, similar to a traditional IRA or 401(k) contributions. For instance, if you earned $50,000 in 2023 and made a $5,000 contribution to your HSA, the government would only tax you on the remaining $45,000 when you file your 2023 taxes. This not only lowers your tax bill but could also place you in a lower tax bracket, providing additional tax savings. 

 

One of the significant benefits of using Health Savings Accounts (HSAs) is that they offer three tax advantages.

Firstly, any interest or earnings you earn on your HSA funds grow tax-free. Secondly, you receive tax-free withdrawals when you use the funds for qualified medical expenses at any age. By doing so, you may potentially avoid taxes on your HSA funds entirely if you reserve them for medical costs. 

However, if you use your HSA funds for non-medical purposes, you'll have to pay taxes on them plus a 20% penalty if you're below 65. Although the penalty is relatively steep, you can still make withdrawals for non-medical purposes. When you turn 65, your HSA functions like a traditional IRA with the added benefit of tax-free medical withdrawals. 

Another significant perk of HSAs is that they don't have required minimum distributions (RMDs), unlike most retirement accounts, where the government requires individuals to take annual withdrawals beginning in the yeah they turn 72. This allows you to keep your money in your HSA account without having to make withdrawals that could potentially increase your tax bill during retirement. 

Lastly, some employers offer an HSA match, similar to a 401(k) match, where your employer will contribute money to your HSA when you do so, up to a specific percentage of your income. While HSA matches are less common than 401(k) matches, they're worth taking advantage of if you're eligible for one. 

 

Maximizing Your HSA Benefits: Tips and Strategies 

While dipping into your Michigan HSA account for medical expenses is understandable, it's important to avoid doing this if you're planning to use the funds for retirement. It's best to budget separately for medical costs, preferably in another savings account. 

Keep in mind, investing your HSA funds is another strategy to consider. Check with your HSA provider to see if they offer this option, and switch to a provider who does if not. Investing may accelerate the growth of your money compared to keeping it in a basic bank account. 

Remember to stay updated on the eligibility requirements and contribution limits each year. It's possible that you'll be able to save more money in your HSA in the future, but only if your health insurance policy allows it. If you contribute more than what's permitted, you risk getting into trouble with the IRS. 

Please remember, our agency is not a CPA or do we give out investment advice. If you are interested in a HSA here in the state of Michigan, please ask any your questions to licensed CPA or investment advisor.

Burial Price Information In Michigan | Michiganhealthbroker, INC

Michigan burial prices have been on the rise in recent years. The average cost of a funeral in Michigan is now $7,360, which is up 3.6% from last year. This increase is due in part to the rising cost of living in the state, as well as the increasing cost of funeral services and life insurance products.

There are a number of factors that go into the cost of a funeral, including the cost of the casket, urn, flowers, and other funeral products. The cost of the funeral service itself can also vary depending on the type of service you choose and whether you opt for a traditional burial or cremation.

Caskets

The cost of a casket can range from a few hundred dollars to several thousand dollars. The most expensive caskets are made of materials like bronze or mahogany and can be quite ornate. More simple caskets made of wood or fiberglass are less expensive but still provide a dignified resting place for your loved one.

Urns

An urn is not required if you choose to bury your loved one's ashes, but many people find comfort in having a physical reminder of their loved one. Urns come in a wide variety of materials and styles, and can range in price from a few hundred dollars to several thousand dollars.

Flowers

The cost of flowers for a funeral can vary depending on the type and number of arrangements you choose. A typical funeral will have several floral arrangements, which can range in price from $50 to $500 per arrangement.

Funeral Services

The cost of the actual funeral service will depend on the type of service you choose and whether you opt for a traditional burial or cremation. A traditional burial service with a viewing and graveside service will typically start at around $1,000, while a cremation with no service will typically start at around $500.

Conclusion: 

As you can see, there are many factors that contribute to the cost of a funeral in Michigan. The average cost of a funeral is now $7,360, which is up 3.6% from last year. This increase is due in part to the rising cost of living in the state, as well as the increasing cost of funeral services and products. When planning a funeral, it is important to consider all of these costs so that you can make an informed decision about what is best for your family.  That is why life insurance is a must within the State.

How AI Can Complicate Healthcare? Can It Complicate Addiction Issues?

Imagine this scenario: you wake up one morning in a cold sweat. You're nauseous and dizzy. Before you get out of bed you turn over to face your smart device. You ask what your symptoms mean, listing each one as you feel it, and wait. The device beeps back, and in its pleasant computer-generated voice lists off some diagnoses based on what it found via an internet search. With a better idea of what you're facing, you ask your device how to go about treating your symptoms. Another pause, then more answers in that same pleasant tone. You take a deep breath, comfortable that you know what's wrong and the best way to tackle it.
    
The growing role of artificial intelligence in daily life has brought new scrutiny to the threat machines and automation pose to the jobs we perform and rely on. For all of the discussion that's taken place, much of it still remains in the realm of speculation. What we can say we safely know at this point is that artificial intelligence won't replace the role that human physicians play in medical care. While devices like Alexa and Google Home can be great for accessing information quickly, there's much more to any medical practice than just knowing the right answers and approaches. So much of what a patient gets from a visit to the doctor's office is a personable human experience that the limitations of artificial intelligence can't replicate. 

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What doctors should worry about, or at least be made aware of, are the risks their patients face by becoming overly reliant on artificial intelligence when it comes to tracking their personal health. The imagined scenario above may seem absurd to you, but in reality, it isn't that far-fetched. Before smart devices became a staple of modern living, many of us deferred to online resources like WebMD to self-diagnose our symptoms and get a quick answer to what was wrong and how to fix it. Smart devices can provide the same results with even greater speed and less effort, appealing to those same people who are more eager to turn to technology for help before turning to a physician. They may see it as a means to save money, or they may feel confident enough to treat their ailments once they have an idea of what they are. Regardless of their reasoning, these people are unknowingly putting themselves at greater risk for the sake of an advantage that doesn't really exist.
     
Most people understand that when they ask their smart devices a question, it utilizes an internet search to find relevant results before reading the top answer back to them. This function can work well to answer simple questions as they relate to health and medicine (such as “Does suboxone block fentanyl?” or “What are the side-effects of methadone?”), it becomes a much more complicated issue when you use  the same technology to try and pin down your symptoms to a specific disease. That's because anyone collection of symptoms could result be in several different diagnoses, ranging from the mild to the severe, with no effective way to determine which one is right. At best it could be enough to convince them to visit a doctor. At worst it could leave them to guess which diagnosis is correct, leaving them open to worsening symptoms or spreading their illness to others.
    
Doctors should make it a point to ask patients about how they're using smart technology in regard to their personal health. They can make sure their patients have a good understanding of how the technology works, why the results they get may not be reliable, and that the answers they get are no substitute for a proper diagnosis from professionals. Patients can integrate AI into their personal health, but they need to know that it shouldn't be more than a small part of their overall routine.
    
Even if medical practitioners aren't using smart devices in their work, it's in their best interest to stay informed of how they are being used by patients and how they may complicate matters in healthcare. AI doesn't pose a threat of replacing doctors, but it can threaten the health of their patients and make their jobs more complicated in the process.

Can I Get A Non-Smoker Michigan Life Insurance Rates If I Am Only Vaping?

Your Michigan Life Insurance Options If Your Are Vaping

For most Michigan life insurance carriers, you’ll find that the required medical exam (or paramed) to qualify for a policy can detect nicotine in your urine. This will most likely put you in the same boat as traditional cigarette smokers, and in the same underwriting class. Which means that the best non-smoker rate classes will probably not be in the cards if you’re vaping.

However, while the majority of insurance carriers consider vaping no different than smoking, a life insurance agent who is well-versed in underwriting guidelines will know there’s at least one major life insurance company that offers “Non Smoker” rates for unlimited vaping, cigar use, or chewing tobacco as long as no cigarettes have been smoked in the last 12 months.  I am sure at this point you are curious to know which carrier?  

Your Rates

We will have to wait for long-term health studies prove or disprove that e-cigarettes and vapes are less harmful than traditional cigarettes.  Until then, in most circumstances the best rates you’ll be offered from most life insurance companies if you’re a “vaper” will be the “Preferred Smokers” rate which, is over FOUR times higher than the best preferred non-smoker rate class.  Of course, that might change in the future.  Time only tells with life insurance carriers and how they handle underwriting.

What we do know is that vaping has become increasingly popular. We can argue the health effects, but again we can't argue the popularity.  The agency itself promotes healthy choices, so make sure to research vaping the effects.

Conclusion

If you are vaping in the state of Michigan, their are choices for your life insurance needs.  You need a experienced agent who understands multiple carriers, and how they handle their underwriting guidelines.  Make sure to reach out to us today to learn more at 586-277-1138.

Resources:

1. https://www.reuters.com/article/us-vaping-insurance-analysis/could-life-insurance-go-up-in-smoke-for-some-vapers-idUSKBN1Y61KL

2. https://www.sunshinebehavioralhealth.com/vaping/

3. https://www.cnbc.com/2019/11/04/why-your-vaping-habit-could-raise-your-life-insurance-costs.html

Here Are 5 Reasons To Consider a Michigan Medicare High Deductible Plan F

So let us discuss, and talk about the High Deductible Plan F. Let us make clear, the High Deductible Plan F is not to be confused with a regular Plan F. Regular Plan F is a Medicare Supplement plan just like a High Deductible Plan F.

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A Michigan High Deductible Plan F, in contrast, does have out of pocket expenses. That's why it's called High Deductible Plan F. So, this is how it works.  The deductible associated with that High Deductible Plan F is not Medicare's deductible. It's, actually, the Plan's deductible. So, in a sense Medicare will continue paying their portion of costs which is generally that 80%, and you'll pay the 20% co-insurance. That amount is applied towards the high deductible amount, so once you've satisfied the full deductible (which at the time of this video is $2,240) then you're fully covered as if you had a regular Medicare Supplement Plan F.

So, for the rest of the calendar year, the Plan will pay the remaining coinsurance, copays, and deductibles that are all approved by Medicare. And, the other item that is different between a regular Plan F and High Deductible Plan F is, of course, the premium. You'll find with the High Deductible Plan F, here in Michigan, you can get the plan for well under $100 a month. So, let's look at the five reasons why you may want to consider High Deductible Medigap Plan F.

One of the biggest reasons why people choose a Michigan Medicare Advantage Plan is because of the very low premium. But, you can't really compare Medicare Advantage Plan and High Deductible Plan F benefits side by side, because they're not apples to apples in comparison. However, if you're looking at a Medicare Advantage Plan because of the low premium, then you may want to consider a MichiagnHigh Deductible Plan F simply because of the out of pocket costs are much lower with a High Deductible Plan F than they are with Medicare Advantage Plans in our professional opinion. I think right now Medicare Advantage Plans are ranging from (their maximum out of pocket costs) depending on the plan, of course, is between $3,400 and $6,700. And, the other thing to keep in mind is that with a Medicare Advantage Plan, you do have to see their network of doctors.

Now to compare with a  High Deductible Plan F, it's a Medicare Supplement plan true and true. So, you can go to any doctor who accepts Medicare anywhere in the country and U.S. territories. So, you have more freedom with the High Deductible Plan F.

In a sense, many view the High Deductible Plan F as a catastrophic plan. Basically it is there to mitigate your risk (as all insurance is) if something major happens. So, if you have a chronic health condition, you're visiting a doctor frequently, you're seeking treatment very often, then this plan will have a lot of out of pocket coming to you.

Talk To A Michigan Medicare Supplement Expert Today

So, Medicare still pays the 80% and you have the 20% coinsurance. And, 20% on your regular doctor visits is not such a big deal. Those are small medical payments. But, we need to keep in mind that if you do go into the hospital, you have surgery, something chronic arises and you need ongoing treatment, that you'll be susceptible to higher medical bills...that, of course, will go toward the deductible. I think it's important to have peace of mind to know that you would be able to pay that deductible amount should something like that arise where you did have some ongoing treatments or emergency. This is not a one time deductible. It's an annual deductible. So, again, you want to be comfortable with the fact that you have those funds to pay the deductible maybe more than once. .

Now, many people are under the assumption that down the road they can just change from a High Deductible Plan F to a Plan G or Plan N with no issues if their health changes. And, this is something that's really important to pay attention to. In most states Michigan included, you cannot change your Medigap plan (including High Deductible Plan F) to a Plan G or a Plan N without medically qualifying.

Now to date if you have been doing any research, then you know the regular Plan F is scheduled to be phased out, in the year 2020'. Meaning, no new Medicare Beneficiaries (starting January 1, 2020) will be able to purchase a Medicare Supplement Plan F. The same is true for High Deductible Plan F. If you have High Deductible Plan F, you'll get to keep it. You're grandfathered in, and as long as you make your premium payment, that plan is yours to keep. Now, whether or not we'll see higher than average rate increases on High Deductible Plan F after the year 2020 remains to be seen.

So their you have, some information on the High F Medigap plan in Michigan.  Any questions or concerns, do contact a Medigap supplement expert in Michigan.

Disclaimer: As written above, the High F plan will be discontinued in 2020'.  This is the plan as of now this published (8/11/19).  In the insurance world, things change so make sure to keep up with this blog or your agent.

Resources:

• https://s3.us-east-2.amazonaws.com/educationblog/medicare.html
• https://storage.googleapis.com/dnatestblog/medicare.html
• https://michigan-medicare.s3.eu-de.cloud-object-storage.appdomain.cloud/medicare.html
• https://michigan-medicare.netlify.app/

What Is The Average Cost For A Funeral In Michigan?

In the state of Michigan, funeral costs seems to be in line with other states across the country.  However, have you really looked at what all is included in the cost of a respectable funeral?

Parting.com came out with a article that really dives into all of the charges that are included in getting a funeral set up, and accomplished.

Let’s look at some of the charges,

1. Fee for funeral director - $1500
2. Cost for casket - $2500 (can be more)
3. Embalming - $500
4. Cost of funeral home expenses - $500
5. Gravesite - $1000
6. Cost to dig the gravesite - $600
7. Grave liner for container - $1000
8. Cost of headstone $1500

Begins to add up quick as I think you would agree? Also, these are average numbers I guess you could say.  My mother passed in 2001’, and her funeral costs were more than this.  I can tell you we did not go extreme by any means.

Michigan Final Expense Life Insurance

When you look at these “ballpark figures,” maybe you could lower them with a cremation.  Maybe.. But here is a fact that we all are facing in our communities.  The cost of funerals are going up, and  nothing is showing us at this time that those costs are stabilizing or in better terms leveling out.

So what can you do as a Michigan consumer?  Obviously you can protect yourself and let us admit it protect others from paying for your funeral with life insurance.  However what type?

Term insurance pays for a select period of time for which you pick.  If you pass within that time frame, then your benefactors receive a check.  

However for most of us, we’ll outlive our term life policies.  For burial life insurance protection (or final expense coverage within the industry itself) we recommend a small whole life insurance policy, or again a final expense plan.

These policies are lifetime coverage.  Benefits never decrease, and prices never increase.  This allows you to keep a small program in your pocket for when your last day comes.  Very affordable, and keeps other within your family from getting the bill.

At Michiganhealthbroker, INC. we broker with over 100 carriers.  This allows us to offer you based on your health past, the most affordable program on the market.  No one is denied, and coverage can begin next day after approved.

Reach out to the agency today for questions about a Michigan final expense policy.