What to know for open enrollment

What to know for open enrollment

Mike Mergen | Bloomberg | Getty ImagesIf you’re a Medicare beneficiary, now’s the time to evaluate your prescription drug coverage for 2023.In addition to checking during Medicare’s annual fall open enrollment whether there’s a more cost-effective plan for you, some legislative changes take effect next year that may reduce how much you pay out of pocket for your coverage.”It’s a quality of life issue,” said Elizabeth Gavino, founder of Lewin & Gavino and an independent broker and general agent for Medicare plans. “Saving money on medications means there’s more Social Security money left for other necessities in life.”More from Year-End PlanningHere’s a look at more coverage on what to do finance-wise as the end of the year approaches:Medicare’s enrollment period opened Oct. 15 and runs through Dec. 7. Beneficiaries can make changes to their coverage during this period.Prescription drugs are generally delivered through Medicare Part D. Of the estimated 64.5 million people enrolled in Medicare, about 50 million have such coverage, through either a standalone Part D plan or an Advantage Plan — both of which are offered by private insurance companies. Advantage Plans deliver Part A (hospital coverage) and Part B (outpatient care) and usually Part D.Here are some changes you may notice next year, as well as some tips for what to look for when evaluating your options for 2023.Insulin costs will be cappedSome changes to prescription drug coverage, enacted as part of the Inflation Reduction Act, take effect next year. This include a monthly $35 cap on cost-sharing for insulin under Part D, which will start on Jan. 1. (Some plans may already offer a $35 cap.)Part D deductibles — which vary from plan to plan but cannot be more than $505 in 2023, up from $480 this year — also won’t apply to the covered insulin product. For beneficiaries who take insulin through a traditional pump (which falls under Part B), the benefit starts July 1.”Some of my clients had to choose between buying food and buying insulin [or] rationing the insulin to make it last longer, thereby taking much less than the prescribed amount,” Gavino said. “This was dangerous, and now they can use the right amount they need to live.”100% coverage for recommended vaccinesAdditionally, there will no longer be any cost-sharing for recommended inoculations under Part D beginning Jan. 1, including for the shingles vaccine. “In the past, many people paid quite a bit for the shingles vaccine because of Part D’s rather high deductible,” said Danielle Roberts, co-founder of insurance firm Boomer Benefits.”The vaccine usually was a covered medication, but because they hadn’t yet satisfied the deductible, they spent quite a bit for it,” Roberts said.Why Americans are finding it more difficult to retireOther provisions that are intended to reduce Part D spending take effect in later years. This includes eliminating an existing 5% coinsurance in the so-called catastrophic phase of coverage (2024) and capping beneficiaries’ annual out-of-pocket Part D spending at $2,000 (2025). Currently, there is no out-of-pocket limit, regardless of whether you get your coverage as a standalone Part D option or through an Advantage Plan.Medicare also will be able to start negotiating the price of some drugs beginning in 2026.Your plan could change its list of covered drugsAs for choosing your 2023 coverage: While you aren’t required to take any action during open enrollment — your current coverage generally would continue into next year — plans often change their list of covered drugs and the price of them.Additionally, each plan assigns individual drugs to different tiers, with the first tier generally being the least expensive and the fifth costing the most. From year to year, various drugs may move from one tier to another in any given plan — which makes it important to check where your prescriptions fall for 2023.Also be sure to look at the pharmacies included in the plan. Some are “preferred” — meaning your medicine will be less expensive there than at a “standard” pharmacy.”The pharmacy you use can really impact the price of what you pay for your prescriptions,” said Ari Parker, a senior advisor at Chapter, a Medicare advisory firm.Beneficiaries with higher income pay more for coverageThe average premium for standard Part D coverage next year is projected to be $31.50, compared to $32.08 in 2022, according to the Center for Medicare & Medicaid Services. However, be aware that if your income is above certain limits, you will be subject to so-called income related adjustment amounts, or IRMAAs, which are in addition to any premium you pay (see chart below). Part B also comes with those extra amounts.Your tax return from 2021 is generally what would be used to determine whether you’re subject to those surcharges in 2023. You can ask for a reconsideration if your income has dropped since then.Getting prescription drug coverage through Medicare is optional. However, if you fail to sign up when you first qualify for coverage at age 65 and change your mind later, you’ll face a life-lasting penalty unless you meet certain exclusions (i.e., you receive acceptable coverage through an employer).The penalty is 1% of the national base premium for each month you didn’t have Part D or creditable coverage and should have.Be aware that while you can change your Advantage Plan early next year (Jan. 1 to March 31) if you discover it’s not a good fit, that’s not the case for standalone Part D plans.”Unless a special circumstance applies, you won’t be able to change it,” Parker said.Also, sometimes you can find medicines at a cheaper cost than through your plan, such as with a free drug-discount card. However, if you go this route instead of through your insurance, your plan won’t count the medicine’s cost and your copay toward your deductible or other calculations it uses to determine your share. .

Capital One’s Premier Collection Offers Luxury Hotel Perks

Capital One’s Premier Collection Offers Luxury Hotel Perks

Capital One made waves in the premium credit card space with the introduction of the Capital One Venture X Rewards Credit Card and is working hard to keep the momentum going.One year after its launch, the Capital One Travel portal is adding a new feature, specifically for premium cardholders: the Premier Collection. Rivaling similar programs offered by American Express and Chase, the Premier Collection will offer cardholders an elevated experience and money-saving perks when staying at luxury hotels and resorts. Capital One says that its goal is ultimately to provide cardholders with a more authentic, local experience when traveling.Below, Select details everything that you need to know about Capital One’s Premier Collection and who will have access to this feature.Subscribe to the Select Newsletter!Our best selections in your inbox. Shopping recommendations that help upgrade your life, delivered weekly. Sign-up here.Capital One Travel Premier CollectionThe Premier Collection will provide premium Capital One cardholders a suite of exclusive, elite-like benefits when staying at hundreds of luxury hotels around the globe from brands like Small Luxury Hotels, The Leading Hotels of the World, Six Senses, 1 Hotels, Montage Hotels and Resorts and Proper Hotels.Some participating properties include The Ned NoMad in New York City, the Montage Laguna Beach in California, the 1 Hotel South Beach in Florida, the La Réserve Paris Hotel and Spa in Paris and more.BenefitsCustomers will enjoy the following benefits when booking through the Premier Collection:

  • A $100 USD experience credit (or the local equivalent) to use on dining, spa, and other activities during their stay
  • Daily breakfast for two
  • Complimentary Wi-Fi
  • Additional premium benefits when available, including early check-in, late checkout and a room upgrade

EligibilityWhile no exact date has been announced, the Premier Collection is set to launch in 2022 and will be accessible through the Capital One Travel portal.It will be available exclusively to those with the premium Capital One Venture X Rewards Credit Card and the Capital One Spark Travel Elite, which is a business credit card currently only available through Capital One Relationship Managers. Authorized users will also have access.Capital One Venture X Rewards Credit CardInformation about the Capital One Venture X Rewards Credit Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.

  • Rewards10X miles on hotels and rental cars, 5X miles on flights when booked via Capital One Travel; unlimited 2X miles on all other eligible purchases
  • Welcome bonusEarn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening
  • Annual fee
  • Intro APR
  • Regular APR19.99% – 26.99% variable APR
  • Balance transfer fee3% for promotional APR offers; none for balances transferred at regular APR
  • Foreign transaction fees
  • Credit needed

PricingPremier Collection room rates should be in line with the best publicly available rate. Capital One told Select that if a customer finds a better price for the same hotel within 24 hours of booking, it will refund the difference per its Price Match Guarantee terms and conditions. There’s also no minimum stay requirement so customers can still enjoy the $100 property credit and other perks on one-night stays.As with other Capital One Travel hotel bookings, Venture X cardholders will earn a generous 10X miles on Premier Collection bookings and can choose to either redeem their miles or up to $300 annual Capital One Travel credit toward their stays. Better yet, Capital One has confirmed that Premier Collection benefits can be stacked with hotel loyalty program benefits, meaning you can still earn hotel points and get elite benefits, when applicable.Alternatives to the Premier CollectionCapital One is going head-to-head with American Express and Chase with the launch of the Premier Collection. Both of the other issuers already offer similar programs which offer extra benefits when booking luxury hotels.Premium American Express cardholders, such as those who carry The Platinum Card® from American Express, have access to the Fine Hotels & Resorts program, which offers the following benefits, based on availability:

  • Daily breakfast for two
  • Complimentary room upgrades and Wi-Fi
  • 12 p.m. check-in and guaranteed 4 p.m. late check-out
  • A $100 credit to use toward on-property activities, dining or other perks like airport transfers, depending on your hotel

The Platinum Card® from American ExpressOn the American Express secure site

  • RewardsEarn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year, 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel, 1X points on all other eligible purchases
  • Welcome bonusEarn 100,000 Membership Rewards® points after spending $6,000 within 6 months of card membership. Apply and select your preferred metal Card design: classic Platinum Card®, Platinum x Kehinde Wiley, or Platinum x Julie Mehretu.
  • Annual fee
  • Intro APR
  • Regular APR
  • Balance transfer fee
  • Foreign transaction fee
  • Credit Needed

Meanwhile, those with higher-end Chase cards like the Chase Sapphire Reserve®, receive special benefits through The Luxury Hotel & Resort Collection, such as:

  • Daily breakfast for two
  • Complimentary room upgrades and Wi-Fi
  • Early check-in and late check-out
  • A special benefit worth up to $100

The main difference is that both of these cards carry significantly higher annual fees than the Venture X.Chase Sapphire Reserve®

  • RewardsEarn 5X total points on air travel and 10X total points on hotels and car rentals when you purchase travel through Chase Ultimate Rewards® immediately after the first $300 is spent on travel purchases annually. Earn 3X points on other travel and dining & 1 point per $1 spent on all other purchases plus, 10X points on Lyft rides through March 2025
  • Welcome bonusEarn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening
  • Annual fee
  • Intro APR
  • Regular APR
  • Balance transfer fee
  • Foreign transaction fee
  • Credit needed

Bottom lineCapital One continues to add value to its travel credit card lineup. In the past year, the issuer has launched a new travel portal, opened its first airport lounge and rolled out exclusive dining and entertainment platforms. It also just announced Capital One Landing, a culinary-focused alternative to the traditional airport lounge.The addition of the Premier Collection makes the Capital One Venture X Rewards Credit Card even more compelling and its $395 annual fee easier to justify. Between the money-saving benefits available through the travel portal, airport lounge access, and now hotel perks, cardholders can expect a smoother travel experience from booking to check-out.If you don’t already have a Capital One Venture X Rewards Credit Card and want to sign up, you can currently earn a large welcome bonus of 75,000 bonus miles after spending $4,000 on purchases within the first three months of account opening.Catch up on Select’s in-depth coverage of personal finance, tech and tools, wellness and more, and follow us on Facebook, Instagram and Twitter to stay up to date.For rates and fees of The Platinum Card® from American Express, click here.Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party. .

American Express Cardholders Get Free Drinks at Panera Bread

American Express Cardholders Get Free Drinks at Panera Bread

Terms apply to American Express benefits and offers. Visit americanexpress.com to learn more.Thanks to a renewed partnership with Panera Bread, American Express cardholders again have the opportunity to score free beverages at the popular chain restaurant, which has more than 2,100 locations across the U.S. and is known for its bakery items, sandwiches and soups.Now through Dec. 31, 2022, American Express cardholders who register for this offer will receive a complimentary four-month subscription to Panera’s Unlimited Sip Club, which offers unlimited coffee, tea, lemonade and other drinks for $11.99 per month.Below, Select takes a closer look at the promotion and how American Express cardholders can take advantage of it.Subscribe to the Select Newsletter!Our best selections in your inbox. Shopping recommendations that help upgrade your life, delivered weekly. Sign-up here.Who is eligible and how to sign upThe Platinum Card® from American ExpressOn the American Express secure site

  • RewardsEarn 5X Membership Rewards® Points for flights booked directly with airlines or with American Express Travel up to $500,000 on these purchases per calendar year, 5X Membership Rewards® Points on prepaid hotels booked with American Express Travel, 1X points on all other eligible purchases
  • Welcome bonusEarn 100,000 Membership Rewards® points after spending $6,000 within 6 months of card membership. Apply and select your preferred metal Card design: classic Platinum Card®, Platinum x Kehinde Wiley, or Platinum x Julie Mehretu.
  • Annual fee
  • Intro APR
  • Regular APR
  • Balance transfer fee
  • Foreign transaction fee
  • Credit Needed

Blue Cash Everyday® Card from American ExpressOn the American Express secure site

  • Rewards3% cash back at U.S. supermarkets (up to $6,000 per year in purchases, then 1%), 3% cash back at U.S. gas stations, (up to $6,000 per year, then 1%), 3% cash back on U.S. online retail purchases, on up to $6,000 per year, then 1%. Cash back is received in the form of Reward Dollars that can be easily redeemed for statement credits.
  • Welcome bonusEarn a $200 statement credit after you spend $2,000 in purchases on your new card within the first 6 months.
  • Annual fee
  • Intro APR0% for 15 months on purchases and balance transfers, from the date of account opening
  • Regular APR
  • Balance transfer feeEither $5 or 3% of the amount of each transfer, whichever is greater.
  • Foreign transaction fee
  • Credit needed

To redeem the offer online, follow these steps to sign up before Dec. 31, 2022:

  1. Redeem the offer through this link
  2. Login on the American Express website to confirm your account
  3. Make sure you have a MyPanera account and sign up for a Panera Unlimited Sip Club subscription through Panera Bread’s website

Once your sign-up is complete, the complimentary four-month trial will begin. When that ends, you’ll automatically be charged the current rate ($11.99 plus tax per month at the time of publication) for a subscription unless you choose to cancel it sooner.Those who are not American Express cardholders can still score free access to Panera’s Unlimited Sip Club through a different promotion. New subscribers who sign up for a membership by Nov. 9, 2022, get their first month free, with the option of canceling the subscription at any time before being charged the regular monthly rate.Panera Unlimited Sip Club benefitsUnlimited Sip Club subscribers have access to a variety of free drinks, including drip hot coffee, iced and hot tea and coffee, fountain soda beverages, hot tea, bubbler drinks, and Charged Lemonades — and can get one for free once every two hours, as well as enjoy unlimited refills while you’re in a Panera Bread location. Even better, you can order any size.Note that this offer does exclude other beverages such as smoothies, bottled drinks, cold brew iced coffee, espresso and cappuccino beverages and frozen blended beverages, as well as beverage enhancements such as espresso and syrups including Madagascar vanilla, caramel, cinnamon and bittersweet chocolate.Bottom lineIf you live near a Panera Bread location, have an American Express card, and haven’t already joined Panera’s Unlimited Sip Club, this offer provides an easy way to score some free beverages this fall — just make sure you’ve signed up for it before December 31, 2022.To avoid being charged at the end of the fourth-month subscription, set a reminder in your calendar to cancel before the trial period is up. There are also a number of subscription trackers like Rocket Money and Trim that make it easy to keep tabs on your subscriptions.Catch up on Select’s in-depth coverage of personal finance, tech and tools, wellness and more, and follow us on Facebook, Instagram and Twitter to stay up to date.For rates and fees for The Blue Cash Everyday® Card from American Express, click here.For rates and fees of The Platinum Card® from American Express, click here.Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party. .

Should you surrender a Ulip policy during the lock-in period?

Should you surrender a Ulip policy during the lock-in period?


Unit-linked insurance plans, or Ulips, usually have a lock-in period of five years but policyholders can choose to surrender the Ulip policy to meet their financial needs at any point in time.  Surrendering a policy implies that the policyholder wants to exit the policy before its maturity. For instance, one may opt for a 10-year investment tenure and exit in the seventh year. 

However, before surrendering a Ulip policy, one should know how its surrender value is calculated and the charges and taxes applicable on its discontinuation.  Taxability: For the surrender value to be tax-free, as per Section 10(10D) of the Income Tax Act, any gain on surrender/maturity of policy will be exempt in the hands of the recipient, provided the premium payable does not exceed 10% of the actual sum assured for any year during the policy term for policies issued after 1 April 2012. For policies issued before 1 April 2012, the life cover should be at least five times the annual premium.  Bharat Kalsi, chief financial officer of Bajaj Allianz Life Insurance, said, “In case of new Ulip policies issued on or after 1 February 2021, if the annual premium is more than 2.5 lakh, all gains on surrender or maturity are treated as capital gains and taxed accordingly. In case of multiple Ulip policies purchased after 1 February 2021 and having an aggregate premium of 2.5 lakh or more, you have the option to choose the policies wherein the aggregate premium is less than 2.5 lakh to be tax-free. The remaining policies would be taxed as capital gains. Further, death proceeds under all the above policies shall continue to be exempt.” Surrender value: This is the amount paid by the insurer to the policyholder on termination of a Ulip policy before the maturity period of five  years. “Once you exercise the surrender option, the fund value, after deduction of surrender charges, is payable either at the end of the lock-in period (five years from the time of buying the policy) or immediately thereafter, depending upon the year of exercising the option,” said Mahesh Balasubramanian, MD and CEO, Kotak Mahindra Life Insurance. For instance, post the lock-in period, the insured will get the entire fund value. However, if the policyholder surrenders the policy during the lock-in period, the funds are moved to the discontinued policy fund, and charges apply. 
Samit Upadhyay, executive vice president and chief financial officer of Tata AIA Life Insurance, said, “During the period that the funds lie in discontinued policy fund, the insurer will apply a fund management charge. The money lying in the discontinued fund will continue to earn interest as insurers have to provide a minimum guaranteed return which would change from time to time. Currently, discontinued policy funds are providing interest of 4% per annum.”

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Exercise caution with zero-premium Medicare Advantage plans

Exercise caution with zero-premium Medicare Advantage plans

Health insurers will flood the Medicare Advantage market again this fall with enticing offers for plans that have no monthly price tag.The number of so-called zero-premium plans has been growing for years, and they can appeal to retirees who live on fixed incomes. Experts say shoppers should exercise caution, because they might find better coverage at a relatively small monthly cost. “It’s not a one-size-fits-all program,” said Melissa Brenner, a broker in Charlotte, North Carolina. “You don’t want to look at a zero plan and just enroll in it.”Medicare Advantage plans are privately run versions of the government’s Medicare program for people who are age 65 and older or have certain disabilities. The annual enrollment window for 2023 Medicare Advantage coverage opens next week. A closer look at the coverage:A GROWING OPTIONNearly seven out of 10 people who enrolled in an individual Medicare Advantage plan with prescription drug coverage for this year opted for no-premium plans, according to the Kaiser Family Foundation, a nonprofit that studies health care issues. That’s up from around five in 10 in 2015. Kaiser also found that 98% of people eligible for Medicare had access to an Advantage plan with drug coverage that charged no premium.“They’re everywhere,” said Bob Rees, vice president of Medicare sales for the online insurance broker eHealth.Medicare Advantage shoppers had plenty of choices in general. Kaiser found that the average person eligible for Medicare had access to 39 Advantage plans during last fall’s enrollment window, including those that charged premiums.For 2023, about 57% of Medicare Advantage plans will have no premium, according to the Centers for Medicare and Medicaid Services. KNOWING THE CATCHThe adage that nothing in life is free applies here.The plans charge no premium, but most people who qualify for Medicare will still pay a monthly cost for the program’s Part B, which covers doctor visits and other outpatient care. That usually comes out of Social Security checks and will total $164.90 next year. Government funding helps insurers offer an array of Medicare Advantage plans with no premiums and extras like dental or vision care that are not covered in traditional Medicare. One key difference from traditional Medicare: These plans usually require patients to visit doctors, hospitals or pharmacies in a network. Some plans may not cover care received outside those networks. WHAT TO CONSIDERBefore looking at a plan’s price, Brenner recommends that shoppers check to see whether their doctors are in the network and how regular prescriptions would be covered. Then they should look at coverage basics. That can include what sort of copays would come with a specialist visit or a hospital stay. They also should look at the annual out-of-pocket maximum.Some of these payments might be higher with a plan that has no premium, so customers could lose any savings if they use the coverage frequently.“There’s always going to be a give and take,” said Brenner, an independent broker who specializes in Medicare Advantage. The federal Medicare.gov website lets visitors compare plan coverages, including for prescriptions.THE CHALLENGESA plan that charges no premium may wind up being a bargain for someone who is relatively healthy. But it can be hard for shoppers to predict what specialists they may need to see or if they will want access to, say, an out-of-state cancer hospital in a given year. “Older people tend to get sick and use services, so it’s a gamble,” said Tricia Neuman, a Kaiser Family Foundation Medicare expert.Sometimes even routine expenses will stick out.Charles Kolton picked a zero-premium plan several years ago but was disappointed with the limited dental coverage that came with it. He later switched to a plan that charges $24 a month but also pays for up to $2,000 in dental costs, or roughly double what his previous option covered. “You can rack up these dental bills pretty quickly,” the 79-year-old North Carolina man said.DEADLINESPeople will have from Oct. 15 until Dec. 7 to pick a new plan or decide whether they want to keep the same coverage. Rees, the eHealth executive, warns shoppers not to wait until December. There’s generally a big rush to sign up at the end. Late shoppers can get locked out if they haven’t chosen a plan already. Nearly half the people eligible for Medicare enroll in Medicare Advantage plans, according to Kaiser. People also can stick with traditional Medicare and sign up for supplemental coverage, which generally comes with a higher premium than an Advantage plan. For Medicare Advantage shoppers, Neuman expects that insurers will continue to offer more zero-premium plans in 2023 as they push to grow enrollment.“Plans understand that seniors are focused on premiums,” she said. ———Follow Tom Murphy on Twitter: @thpmurphy ———The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Department of Science Education. The AP is solely responsible for all content. .