00:00 Allie
Bob, let’s get right into it. Here’s our first question. One Yahoo Finance reader asks, how can I tell if a continuing care retirement community is right for me?
00:10 Bob
Sure. So, Ally, it can be a good option if you want the security of aging in place and having access to different levels of care as you age. So, a CCRC has uh everything. It has a independent living, assisted living, nursing care, and memory care. But it’s a lifestyle and financial decision. So, on the financial side, CCRCs often have a steep entrance fee, anywhere from $400,000 to a million dollars, plus there are fees that average like $4,200 a month, and those fees typically rise about 4% each year.
00:54 Bob
Then you’ve got to think about the type of contracts that you might get offered. One type costs more up front, but locks in future costs. Another one has like less initially costs, but uh could lead to much higher bills in as you need advanced care and then another type is in the middle. So, you want to consider also the financial the facility’s financial health and the quality of services and the amenities, and whether residents have a voice in governance and possibly whether there are tax deductions uh uh available.
01:21 Bob
So, if you’re weighing a move to a CCRC, consider working with an advisor who has expertise in them because there are lots of million-dollar mistakes out there.
01:34 Allie
Yes, no one wants to make a million dollar mistake. Uh next question here. What changes is the Social Security administration considering for disability benefits and how might they affect me?
01:45 Bob
Yeah, this is an interesting question because the administration is looking at the biggest update to disability benefits in decades. And one change is swapping out its outdated job list that has that was last updated more than 30 years ago and it’s going to take into account more current data. And these this could make decisions more accurate, but it may also mean fewer people qualify. And another proposal is to give less weight to age. So, right now older workers often qualify more easily because they’re because retraining is harder at 55 or 60.
02:16 Bob
But if age counts for less, many over 50 could lose their benefits or be pushed into early retirement with permanently reduced checks. So analysts are saying that even this modest tightening could cut maybe 500,000 people from SSDI over the next 10 years. Big problem.
02:32 Allie
Got it. And finally, our last question of the day. I’m trying to decide which pharmacy to use for my Medicare Part D prescription drug plan, and there are two types to choose from, in-network and preferred. But Medicare’s website doesn’t tell me the difference between the two. What is the difference?
02:49 Bob
Yeah, so right now we’re in the middle of Medicare’s annual enrollment period or annual election period depending on who you listen to. Uh according to medicare.gov, it’s not on the Medicare Planfinder site, but it is buried on the medicare.gov site. And the difference is is this, for in network pharmacies, uh plans have contracts with these in network pharmacies, these pharmacies have agreed to offer uh discounted price for members of certain Medicare plans. And in some Medicare plans, your drugs are only covered if you get them filled at the in network pharmacy.
03:22 Bob
As for preferred in network, if your plan has this, they may save you money on your out of pocket drug costs like a co-payment or co-insurance because they’ve agreed to charge less than other pharmacies in your plans network. So, and by the way, there are also something called out of network pharmacies, but you should generally avoid them and stick to either preferred or in network.