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The Affordable Care Act – How is it Affecting America’s Seniors?

In July, we discussed the Affordable Care Act (ACA) and how it affects America’s youth. But who else is feeling the effects of the ACA? Let’s jump forward a generation or two and see what the Affordable Care Act provides to the country’s senior citizens.

Those enjoying their “Golden Years” currently have the option of choosing their own physician, and that their benefits covered by Medicare will not be reduced. With this in mind, where exactly have seniors seen a change?

Most notably, participants may see a difference in the doughnut hole of Medicare Part D. This is the area where coverage on prescription drugs is no longer provided until a threshold is reached by the consumer. That means seniors are paying out of pocket for their prescription drugs up until that threshold is met. In 2013, Medicare Part D stops paying for coverage once total costs for the year reach $2,930 and they will start paying again once a total of $4,700 is spent. This means that recipients are responsible for 100% of costs between $2,930 and $4,700. After the ACA was enacted in 2011, individuals subject to the doughnut hole began receiving a 50% discount on their name-brand prescription drugs and a 7% discount on generic prescription drugs. Even though you are receiving the discount, the full retail cost of the prescription drugs will be applied to get you out of the donut hole. As the law is written now, the doughnut hole will be closed by 2020.

Another change for many seniors provided by the ACA is the focus on preventative care within Medicare Part B. Those new to Medicare Part B and those who have been enrolled for some time are now able to take advantage of complimentary preventative screening benefits unavailable before the ACA was enacted.

While we’ve been able to highlight two key demographics affected by the Affordable Care Act, there are many other components to look at in the 2,000-plus page document. If you would like to learn more about how the ACA might affect you personally, contact your RegentAtlantic Wealth Manager.

 

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Please remember to contact RegentAtlantic if there are any changes in your personal or financial situation or investment objectives for the purpose of reviewing our previous recommendations and services, or if you wish to impose, add, or modify any reasonable restrictions to our investment management services. A copy of our current written disclosure statement discussing our advisory services and fees is available for your review upon request.

This article is not a substitute for personalized advice from RegentAtlantic. This article is current only as of the date on which it was sent. The statements and opinions expressed are, however, subject to change without notice based on market and other conditions and may differ from opinions expressed in other businesses and activities of RegentAtlantic. Descriptions of RegentAtlantic’s process and strategies are based on general practice and we may make exceptions in specific cases.

RegentAtlantic does not provide legal or tax advice. Please consult with a legal and or tax professional of your choosing prior to implementing any of the strategies discussed in this article.

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