Medicare Updates 2026: What the $202.90 Premium Increase Means for Your Budget (Plus 5 Ways to Save)

Medicare enrollees across the nation are facing a significant milestone in 2026: Medicare Part B premiums will exceed $200 per month for the first time in the program's history. The Centers for Medicare and Medicaid Services has announced that the standard Medicare Part B premium for 2026 will be $202.90 per month, representing a $17.90 increase from the current $185: a substantial 9.7% jump that will impact millions of seniors' budgets.

At Borde & Associates, we understand that navigating Medicare updates 2026 can feel overwhelming, especially when facing rising healthcare costs during retirement. That's why we've prepared this comprehensive guide to help you understand exactly what these changes mean for your financial planning and, most importantly, how you can take actionable steps to save money despite these increases.

Understanding the 2026 Medicare Part B Premium Increase

The Medicare Part B premium 2026 increase affects every Medicare beneficiary, but the impact varies significantly based on your income level. For most Medicare enrollees: those with individual incomes of $109,000 or less, or joint filers earning $218,000 or less: the monthly premium will be $202.90. However, higher-income beneficiaries face much steeper increases through Income-Related Monthly Adjustment Amounts (IRMAA).

IRMAA Brackets for 2026: What High Earners Need to Know

If your income exceeds the standard thresholds based on your 2024 tax return, you'll pay significantly more:

Individual Income Brackets:

• $109,001–$137,000: $284.10/month ($81.20 IRMAA surcharge)
• $137,001–$171,000: $405.80/month ($202.90 IRMAA surcharge)
• $171,001–$205,000: $527.50/month ($324.60 IRMAA surcharge)
• $205,001–$499,999: $649.20/month ($446.30 IRMAA surcharge)
• $500,000 and above: $689.90/month ($487.00 IRMAA surcharge)

Joint Filing Brackets:

• $218,001–$274,000: $284.10/month
• $274,001–$342,000: $405.80/month
• $342,001–$410,000: $527.50/month
• $410,001–$749,999: $649.20/month
• $750,000 and above: $689.90/month

These Medicare budget planning considerations are crucial for your retirement financial strategy, as the highest earners will pay nearly three and a half times the standard premium.

Additional Cost Increases Beyond Part B Premiums

The premium increase isn't the only change affecting your out-of-pocket healthcare expenses in 2026. The Medicare Part B annual deductible will rise to $283, up from $257: a $26 increase representing a 10.1% jump. This means you'll need to pay more before your Medicare coverage begins helping with costs.

Medicare Part A costs are also increasing for those who pay premiums. Hospital coinsurance for days 61-90 will reach $434 per day (up from $419), while lifetime reserve days will cost $868 per day (up from $838). Skilled nursing facility coinsurance for days 21-100 increases to $217 per day from $209.50.

The Real Budget Impact: What These Numbers Mean for You

For the average Medicare beneficiary, the monthly premium increase alone translates to $215 more annually. When combined with the higher deductible and increased coinsurance rates, the cumulative impact on your healthcare budget becomes substantial.

A typical Medicare enrollee could see their total Medicare costs increase by $300 or more annually: money that many retirees on fixed incomes can ill afford. This makes understanding affordable Medicare options and implementing senior healthcare savings strategies more critical than ever.

Why Are Medicare Costs Rising?

The Centers for Medicare and Medicaid Services attributes these increases primarily to projected healthcare spending growth. Medicare spending is expected to increase 8.9% across 2026 and 2027: significantly outpacing general healthcare spending growth. Interestingly, these premiums would have been approximately $11 higher monthly if not for recent policy changes addressing certain medical device spending that's expected to drop 90% in 2026.

5 Smart Strategies to Save on Medicare Costs in 2026

Despite these challenging increases, there are concrete steps you can take to minimize the impact on your budget. Here are the best Medicare strategies our experienced team at Borde & Associates recommends:

1. Leverage Your Social Security Cost-of-Living Adjustment (COLA)

The 2026 Social Security cost-of-living adjustment of 2.8% will add approximately $56 per month to the average retiree's Social Security check. While this doesn't fully offset the Medicare increases, it provides meaningful relief. Consider directing this additional income specifically toward your increased Medicare costs to maintain your current lifestyle.

2. Evaluate Medigap Supplemental Insurance Options

With higher deductibles and coinsurance amounts, a Medigap policy might now make financial sense even if it didn't before. Medigap Plan G, for instance, covers the Part B deductible after you pay it once annually, potentially saving you money on frequent medical visits. Our Medicare specialists can help you calculate whether the monthly Medigap premium would save you money overall compared to paying higher out-of-pocket costs.

3. Consider Medicare Advantage as an Alternative

Medicare Advantage plans continue evolving, with average premiums changing in 2026 and maximum out-of-pocket limits decreasing slightly. These plans often include prescription drug coverage and additional benefits like dental and vision care. During the open enrollment period (ending December 7, 2025), compare Medicare Advantage options against traditional Medicare plus supplements to find your most cost-effective coverage.

4. Optimize Your Income Strategy for IRMAA Reduction

If you're close to an IRMAA threshold, strategic income management might keep you in a lower bracket. Consider:

• Roth IRA conversions in lower-income years
• Timing of retirement account withdrawals
• Harvesting investment losses to offset gains
• Delaying Social Security if it pushes you into a higher IRMAA bracket

Remember, IRMAA is based on your tax return from two years prior, so 2026 IRMAA brackets use your 2024 income.

5. Review and Optimize Your Part D Prescription Drug Coverage

Part D prescription drug plan costs are also increasing, with higher deductibles and out-of-pocket maximums. However, the "donut hole" continues closing, and catastrophic coverage improvements mean you'll pay less for expensive medications once you reach the catastrophic threshold. Review your current medications against different Part D plans during open enrollment to ensure you're in the most cost-effective option.

Take Action During Open Enrollment

Medicare's open enrollment period runs through December 7, 2025, making right now the crucial time to review your coverage options and understand how these changes will affect your specific situation. Don't wait: your decisions during this enrollment period will determine your coverage and costs throughout 2026.

How Borde & Associates Can Help You Navigate 2026 Changes

At Borde & Associates, we've been proudly serving our community for over a decade, helping families navigate complex insurance decisions with confidence. Our Medicare specialists understand that these 2026 changes represent more than just numbers: they impact your financial security and peace of mind during retirement.

We offer comprehensive Medicare planning services including:

• Personalized analysis of your current coverage versus 2026 options
• IRMAA impact assessments and income optimization strategies
• Medigap policy comparisons and recommendations
• Medicare Advantage plan evaluations
• Prescription drug coverage optimization

Our goal is to ensure you have the knowledge and support needed to make informed decisions that protect both your health and your budget. We believe everyone deserves access to affordable, comprehensive healthcare coverage, and we're committed to finding solutions that work for your unique situation.

Planning Ahead: Your Next Steps

The Medicare updates 2026 require proactive planning, but you don't have to navigate these changes alone. Start by calculating your expected total Medicare costs under the new premium structure, then explore each of the five savings strategies we've outlined.

Contact our experienced team at Borde & Associates today to schedule your personalized Medicare planning consultation. We'll review your current coverage, analyze the 2026 changes' impact on your specific situation, and develop a customized strategy to minimize your costs while maximizing your coverage.

Your healthcare and financial security are too important to leave to chance. Let us help you turn these challenging Medicare changes into opportunities for smarter, more cost-effective coverage.

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Ready to take control of your Medicare costs? Contact Borde & Associates at www.baapa.us or visit our Medicare options page to schedule your consultation today.

#Medicare2026 #SeniorSavings #BudgetingTips #MedicarePartB #HealthcareCosts #RetirementPlanning #SaveWithMedicare

 

Family Health Insurance Premiums Hit $27K: 7 Smart Strategies to Cut Your Costs Before 2026

The reality of health insurance for families has reached a critical tipping point. Family health insurance premiums have surged to an average of $26,993 in 2025, representing a staggering 6% increase from the previous year: a $1,408 jump that significantly outpaces both general inflation at 2.7% and wage growth at 4%. With workers now contributing an average of $6,850 annually while employers cover the remaining $20,143, American families are feeling the financial strain more than ever.

As we approach 2026, industry experts predict potentially double-digit premium increases, particularly in smaller markets. However, you don't have to accept these rising costs as inevitable. With strategic planning and the right approach, your family can implement proven methods to save on health insurance while maintaining quality coverage.

Understanding What's Driving Your Premium Increases

Before diving into cost-cutting strategies, it's essential to understand the forces behind these 2026 health insurance trends. Prescription drug prices top the list, with 36% of large employers citing them as contributing "a great deal" to recent increases. The prevalence of chronic disease affects 30% of cost drivers, while higher utilization of services impacts 26% of premium calculations.

The emergence of expensive GLP-1 weight loss drugs like Wegovy adds another layer of complexity, with only 19% of large employers currently covering these medications for weight loss purposes. These factors create a perfect storm that directly impacts your family's affordable health coverage options.

Strategy 1: Maximize Your Health Savings Account (HSA) Benefits

High-deductible health plans (HDHPs) paired with Health Savings Accounts represent one of the most powerful tools for family insurance planning. Nearly three in ten covered workers (29%) are now enrolled in HSA-qualified plans, and for good reason.

Your HSA contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses aren't taxed. For 2025, families can contribute up to $4,300 for individual coverage and $8,550 for family coverage. If you're 55 or older, you can contribute an additional $1,000 as a catch-up contribution.

The key to maximizing HSA benefits lies in treating it as a long-term investment vehicle rather than just a medical expense account. Pay for current medical expenses out-of-pocket when possible, allowing your HSA to grow tax-free for future healthcare needs or retirement.

Strategy 2: Conduct Thorough Open Enrollment Comparisons

Your annual open enrollment period represents the single best opportunity to lower your premiums through strategic plan selection. Many families automatically renew their existing coverage without comparing alternatives, missing significant savings opportunities.

When evaluating plans, look beyond just the monthly premium. Consider the total cost of ownership, including:

• Annual deductibles (now averaging $1,886 for single coverage)
• Out-of-pocket maximums (72% of workers face maximums exceeding $3,000)
• Copayments and coinsurance rates
• Prescription drug coverage
• Provider network accessibility

Calculate your family's total annual healthcare costs under each available plan scenario. Sometimes a higher-premium plan with lower deductibles provides better value for families with ongoing medical needs.

Strategy 3: Consider High-Deductible Health Plans Strategically

While HDHPs require higher out-of-pocket costs before insurance coverage begins, they often feature significantly lower monthly premiums. The average deductible for single coverage reached $1,886 in 2025, but the premium savings can offset this cost for healthy families.

HDHPs work particularly well when paired with HSA contributions and strategic healthcare utilization. These plans typically cover preventive care at 100% before the deductible, allowing you to maintain essential health screenings while building tax-advantaged savings.

However, HDHPs require careful financial planning. Ensure you have adequate emergency savings to cover the higher deductible before medical insurance benefits begin.

Strategy 4: Leverage Preventive Care Benefits Fully

All health insurance plans must cover certain preventive services at 100% with no deductible or copayment requirements. This includes annual wellness visits, vaccinations, screenings, and counseling services. Taking full advantage of these benefits can prevent minor health issues from becoming expensive medical emergencies.

Preventive care utilization directly correlates with long-term healthcare cost reduction. Regular screenings can detect conditions early when treatment is less expensive and more effective. Your family's proactive approach to preventive care demonstrates lower risk to insurance providers and can influence future premium calculations.

Create a family wellness calendar that includes all recommended preventive services for each family member. This systematic approach ensures you maximize these valuable benefits while maintaining optimal health.

Strategy 5: Optimize Prescription Drug Coverage

With prescription drug prices being the leading cost driver, strategic medication management becomes crucial for affordable health coverage. Review your plan's formulary (covered medication list) during open enrollment, paying special attention to:

• Tier placement of your family's current medications
• Generic alternatives availability
• Mail-order pharmacy discounts
• Step therapy requirements
• Prior authorization processes

Consider discussing generic alternatives with your healthcare providers. Generic medications provide the same therapeutic benefits as brand-name drugs while significantly reducing out-of-pocket costs.

For expensive specialty medications, investigate manufacturer assistance programs, patient advocacy foundations, and pharmacy discount programs that can substantially reduce costs.

Strategy 6: Participate in Employer Wellness Programs

Many employers offer wellness programs that provide premium discounts, HSA contributions, or other financial incentives for healthy behaviors. These programs might include:

• Biometric screenings and health assessments
• Smoking cessation programs
• Weight management initiatives
• Fitness center memberships or reimbursements
• Mental health and stress management resources

Participation in employer wellness programs can result in hundreds of dollars in annual savings while promoting better health outcomes for your family. Some programs offer premium reductions up to $1,500 annually for meeting specific health criteria.

Even if your employer's wellness program seems minimal, participation demonstrates your commitment to health management, which can influence future benefit offerings and potentially impact group premium calculations.

Strategy 7: Explore Supplemental Insurance Options

Supplemental insurance products can provide additional financial protection while potentially reducing your primary health insurance costs. Consider:

Critical Illness Insurance: Provides lump-sum payments for specific diagnoses, helping cover deductibles and out-of-pocket expenses while you recover.

Accident Insurance: Covers injuries from accidents, often providing benefits regardless of your primary insurance coverage.

Hospital Indemnity Insurance: Pays fixed daily amounts for hospital stays, helping offset high deductibles and lost income.

These supplemental products typically cost significantly less than increasing your primary coverage and can provide targeted protection for specific scenarios that would otherwise result in high out-of-pocket costs.

Preparing for 2026 and Beyond

The landscape of health insurance for families continues evolving rapidly. Industry projections suggest continued premium increases, particularly as new expensive treatments become available and chronic disease prevalence rises.

Your proactive approach to understanding these seven strategies positions your family to navigate upcoming changes successfully. Regular plan evaluation, strategic HSA utilization, and comprehensive preventive care create a foundation for long-term healthcare cost management.

Take Action Today

Don't wait until your next open enrollment period to begin implementing these cost-saving strategies. Start maximizing your HSA contributions, schedule your family's preventive care appointments, and review your current prescription drug usage patterns.

At Borde & Associates, we've helped families navigate complex health insurance decisions for over a decade. Our expertise in family insurance planning ensures you receive personalized guidance tailored to your specific needs and budget constraints.

Ready to explore how these strategies can reduce your family's health insurance costs? Contact our experienced team today for a comprehensive review of your current coverage and personalized recommendations for 2026 planning.

#HealthInsuranceTips #FamilyCoverage #InsuranceSavings #AffordableHealthCare #LowerPremiums #2026Trends #HealthcarePlanning

The Importance of Preventative Checkups and Early Detection: Save on Health Insurance Premiums!

 Your health is your most valuable asset, and protecting it doesn't have to break the bank. In fact, taking a proactive approach to your healthcare through regular preventative checkups and early detection screenings can actually save you thousands of dollars on your health insurance premiums while keeping you and your family healthier for years to come.

The Financial Power of Prevention

When you prioritize preventative care, you're making one of the smartest financial decisions for your family's future. Health insurance companies recognize that customers who engage in regular preventative checkups are significantly less likely to require expensive emergency treatments or costly chronic disease management. This translates directly into lower premiums and better coverage options for you.

The numbers speak for themselves: chronic diseases like diabetes, heart disease, and cancer account for approximately 90% of our nation's $4.1 trillion in annual healthcare costs. Many of these conditions can be prevented or managed effectively when caught early, leading to substantial savings that benefit both you and your insurance provider.

Consider this real-world impact: people with chronic conditions spend an average of $6,000 annually on healthcare costs, compared to just $1,200 for those without chronic conditions. By investing in preventative care today, you're protecting yourself from these potentially devastating expenses tomorrow.

Essential Preventative Screenings That Save Money

Your preventative care strategy should include these critical screenings and checkups that insurance companies value most:

Annual Physical Examinations
Your yearly wellness visit serves as the foundation of preventative care. During this comprehensive evaluation, your healthcare provider assesses your overall health, updates vaccinations, and identifies potential risk factors before they develop into serious conditions.

Cancer Screenings

• Mammograms for breast cancer detection in women over 40
• Colonoscopies for colorectal cancer screening beginning at age 45
• Pap smears for cervical cancer prevention
• Skin cancer screenings for early detection of melanoma

Cardiovascular Health Monitoring

• Blood pressure checks to prevent heart disease and stroke
• Cholesterol screenings to identify cardiovascular risks
• Heart rhythm assessments for early detection of cardiac issues

Diabetes Prevention

• Blood glucose testing for early diabetes detection
• A1C screenings for pre-diabetes identification
• Body mass index assessments for weight management guidance

How Insurance Companies Reward Your Preventative Care

Health insurance providers actively encourage preventative care through various incentive programs because they understand the long-term financial benefits. When you consistently engage in preventative care, insurance companies view you as a lower-risk policyholder, which often translates into:

Premium Discounts and Reductions
Many health insurance plans offer direct premium reductions for policyholders who complete annual wellness visits and recommended screenings. These discounts can save your family hundreds of dollars annually while ensuring you receive the care you need.

Wellness Program Benefits
Insurance companies frequently offer comprehensive wellness programs that include:

• Free or discounted gym memberships
• Nutrition counseling services
• Smoking cessation programs
• Weight management support
• Stress reduction resources

Lower Deductibles and Copays
Preventative care participants often qualify for reduced deductibles and lower copayments on future medical services, creating ongoing savings throughout the year.

The Early Detection Advantage

Early detection through regular screenings provides you with the best possible outcomes while minimizing treatment costs. When diseases are identified in their early stages, treatment options are typically more effective, less invasive, and significantly more affordable.

For example, when cancer is detected in its early stages, survival rates are four times higher than when detected later. This early intervention not only saves lives but also reduces the extensive treatment costs associated with advanced disease management.

Preventable Conditions Through Early Detection:

• High blood pressure management prevents heart attacks and strokes
• Early diabetes detection prevents complications like kidney disease and vision loss
• Osteoporosis screening prevents debilitating fractures
• Mental health assessments prevent more serious psychological conditions

Your Coverage Under Current Healthcare Laws

The Affordable Care Act ensures that most health insurance plans cover preventative services at no additional out-of-pocket cost to you. This means you can access these essential services without worrying about copayments, deductibles, or coinsurance fees.

Covered Preventative Services Include:

• Routine immunizations and vaccinations
• Annual wellness visits and physical examinations
• Cancer screenings and diagnostic tests
• Cardiovascular health assessments
• Diabetes and obesity screenings
• Mental health and substance abuse screenings
• Reproductive health services

This comprehensive coverage removes financial barriers that might otherwise prevent you from accessing crucial preventative care services.

The Return on Your Preventative Care Investment

Research consistently demonstrates that preventative care provides exceptional return on investment. Every dollar spent on immunizations saves $5 in medical costs, while primary clinical preventative services generate an estimated net savings of $7 billion compared to their implementation costs.

For your family, this means that the time and effort you invest in preventative care today will pay dividends through:

• Reduced healthcare expenses over your lifetime
• Lower insurance premiums and better coverage options
• Fewer sick days and improved productivity
• Enhanced quality of life for you and your loved ones
• Peace of mind knowing you're protecting your family's health and financial future

Creating Your Family's Preventative Care Plan

Developing an effective preventative care strategy requires coordination with both your healthcare providers and your insurance company. Start by reviewing your current health insurance plan to understand which preventative services are covered and any specific requirements for accessing these benefits.

Steps to Maximize Your Preventative Care Benefits:

1. Schedule your annual wellness visit and discuss your family's health history with your physician
2. Create a screening schedule based on your age, gender, and risk factors
3. Verify that your chosen healthcare providers are in-network to maximize your insurance benefits
4. Keep detailed records of all preventative services received
5. Take advantage of any wellness programs offered by your insurance provider

Working with Insurance Professionals

Navigating the complex world of health insurance and preventative care benefits can be challenging. Working with experienced insurance professionals helps ensure you're maximizing both your coverage and your potential savings.

At Borde & Associates, we help families understand how preventative care impacts their insurance premiums and overall healthcare costs. Our team can review your current coverage, identify opportunities for improvement, and help you develop a comprehensive strategy that protects both your health and your financial well-being.

Taking Action for Your Family's Future

Your commitment to preventative care creates a foundation for long-term health and financial stability. By prioritizing regular checkups and early detection screenings, you're not just investing in better health outcomes: you're making a smart financial decision that will benefit your family for years to come.

The combination of improved health outcomes, reduced healthcare costs, and lower insurance premiums makes preventative care one of the most powerful tools available for protecting your family's future. Don't wait until health problems develop; take control of your healthcare today and start experiencing the benefits of a proactive approach to your family's well-being.

Ready to explore how preventative care can impact your health insurance premiums? Contact our team today to discuss your options and develop a personalized strategy that works for your family's needs and budget. Call 321-36-BORDE or visit www.baapa.us

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#PreventativeCare #EarlyDetection #HealthInsuranceSavings #Wellness #AffordableCoverage #FamilyHealth #HealthcareTips #InsuranceSavings #WellnessScreenings #HealthcarePreventionFirst #MedicalCheckups #HealthInsuranceDiscounts

 

Business Succession Planning: Minimizing Taxes and Transition Risks for a Smooth Exit Strategy

If you're a business owner contemplating the future of your company, you're facing one of the most significant decisions of your entrepreneurial journey. Business succession planning isn't just about finding someone to take over: it's about creating a comprehensive strategy that protects your life's work, minimizes tax implications, and ensures a seamless transition that benefits everyone involved.

At Borde & Associates, we understand that passing your business to the next generation requires careful planning, strategic thinking, and expert guidance. Your business represents decades of hard work, and you deserve an exit strategy that maximizes value while minimizing risks and tax burdens.

Why Business Succession Planning Matters More Than Ever

The statistics are sobering: only 30% of family businesses survive to the second generation, and just 12% make it to the third. Without proper succession planning, your business faces unnecessary risks that could derail everything you've built. More importantly, poor planning can result in devastating tax consequences that significantly reduce what you and your family ultimately receive.

Business succession planning is your roadmap to a successful transition. It's a comprehensive process that addresses leadership development, ownership transfer, tax optimization, and risk management: all while ensuring your business continues to thrive under new leadership.

Understanding Your Exit Strategy Options

When developing your succession plan, you have several pathways to consider, each with distinct advantages and tax implications:

Family Business Succession

Transferring ownership to family members often provides the greatest emotional satisfaction, but it requires careful preparation. Your successors need proper training, and you need structures in place to minimize estate and gift taxes while ensuring the business can support multiple family members.

Management Buyout

Selling to existing management or key employees can maintain business culture and relationships. Employee Stock Ownership Plans (ESOPs) offer significant tax advantages and can provide you with a steady income stream while giving employees ownership stakes.

Third-Party Sale

Selling to external buyers often maximizes immediate financial returns, but requires extensive preparation to make your business attractive and command top dollar.

Key Steps in Your Succession Planning Process

Start with Clear Succession Goals

Your succession plan should align with your personal and financial objectives. Are you looking to maximize immediate cash flow, maintain family control, or ensure employee job security? These priorities will shape every aspect of your planning.

Consider questions like:

• When do you realistically want to transition out of daily operations?
• What level of ongoing involvement do you desire?
• How important is preserving your company's culture and values?
• What are your post-transition financial needs?

Identify and Develop Future Leaders

Next generation leadership development is crucial for successful transitions. Whether you're grooming family members or key employees, they need comprehensive training in all aspects of business operations, financial management, and strategic planning.

Start this process early: ideally 3-5 years before your planned transition. Provide your successors with:

• Hands-on experience in different departments
• Financial management training
• Customer relationship responsibilities
• Strategic planning involvement
• Industry networking opportunities

Minimizing Taxes in Your Business Sale

Tax planning is where professional expertise becomes invaluable. The structure of your transition can dramatically impact how much you ultimately keep after taxes.

Strategic Transaction Structuring

Asset vs. Stock Sales: The way you structure your sale affects your tax burden significantly. Stock sales typically qualify for capital gains treatment, while asset sales may result in higher ordinary income tax rates on certain components.

Installment Sales: Spreading payments over multiple years can keep you in lower tax brackets and defer capital gains taxes. This strategy works particularly well for family transitions where immediate cash flow isn't critical.

Tax-Free Reorganizations: Certain merger structures under IRC Section 368 can provide tax deferral benefits when properly executed with professional guidance.

Advanced Tax Strategies

Qualified Small Business Stock (QSBS): If your business qualifies, you may exclude up to $10 million or 10 times your basis from federal taxes: a powerful incentive for proper structuring.

Employee Stock Ownership Plans (ESOPs): These provide exceptional tax advantages, including the ability to defer or eliminate capital gains taxes by reinvesting proceeds in qualified securities.

Grantor Retained Annuity Trusts (GRATs): These vehicles can help transfer business value to the next generation with minimal gift tax consequences.

Managing Transition Risks

Business Continuity Solutions

Your succession plan must address what happens if unexpected events disrupt your timeline. Key person insurance, disability coverage, and buy-sell agreements provide crucial protection during vulnerable transition periods.

Buy-sell agreements are essential legal documents that:

• Establish business valuation methods
• Define triggering events for ownership transfers
• Provide guaranteed buyers for ownership interests
• Prevent unwanted third-party ownership
• Ensure fair compensation for departing owners

Building Your Advisory Team

Successful succession planning requires expertise across multiple disciplines. Your team should include:

• Business succession planning specialists who understand industry-specific challenges
• Tax professionals experienced in complex transactions
• Estate planning attorneys familiar with business transitions
• Business valuation experts
• Insurance professionals for risk management transition strategies

Creating Comprehensive Business Continuity Solutions

Your succession plan must address both planned and unplanned transitions. Life insurance plays a crucial role in funding buy-sell agreements and providing liquidity for estate taxes or family support.

Key Person Protection

Identify individuals whose loss would significantly impact business operations or value. Key person life and disability insurance protect against financial losses while providing resources to recruit and train replacements.

Family Financial Security

If you're planning family business succession, consider how the business will support multiple family members while maintaining operational capital. Life insurance can provide non-business assets to family members who won't be involved in operations, preventing conflicts over business resources.

Timeline for Success

Effective succession planning isn't something you start when you're ready to retire: it's a process that begins years in advance:

5+ Years Before Transition:

• Begin leadership development programs
• Implement tax-efficient ownership structures
• Start building business value and reducing owner dependence

3-5 Years Before:

• Intensify successor training
• Complete business valuations
• Finalize buy-sell agreements and insurance funding

1-3 Years Before:

• Execute tax optimization strategies
• Begin formal transition processes
• Communicate plans to stakeholders

Year of Transition:

• Complete legal transfers
• Implement new leadership structure
• Monitor and adjust as needed

Your Next Steps

Business succession planning is one of the most complex challenges you'll face as a business owner, but with proper guidance, you can create a strategy that protects your interests while ensuring your business thrives under new leadership.

At Borde & Associates, we specialize in helping business owners navigate these critical transitions. Our comprehensive approach addresses every aspect of succession planning, from tax planning strategies to business continuity solutions that protect your legacy.

Don't wait until you're ready to retire to start planning. The most successful transitions begin years in advance, giving you time to optimize every aspect of the process. Contact us today to discuss how we can help you develop the perfect exit strategy for your unique situation.

Your business deserves a succession plan that honors your hard work while securing your financial future. Let us help you make that vision a reality.

Ready to start planning your business succession strategy? Contact our team today for a confidential consultation about your exit planning needs.

#SuccessionPlanning #BusinessExit #NextGeneration #TaxPlanning #BusinessContinuity #FamilyBusiness #2026Strategies

 

Filling the Gaps in Your Medicare Coverage: How to Save Thousands Each Year

If you're approaching Medicare eligibility or already enrolled, you've likely discovered that Medicare doesn't cover all your healthcare expenses. In fact, Original Medicare typically covers only about 80% of your medical costs, leaving you responsible for significant out-of-pocket expenses that can quickly add up to thousands of dollars annually.

The good news is that you have options to fill these coverage gaps and protect your retirement savings from unexpected medical bills. Understanding these solutions can help you make informed decisions that safeguard your financial security while ensuring you receive the healthcare you need.

Understanding Medicare's Coverage Gaps

Medicare's structure creates several areas where you'll face out-of-pocket costs. Original Medicare Part A (hospital insurance) and Part B (medical insurance) work together, but they don't provide complete coverage for your healthcare needs.

Part B Coverage Limitations

Medicare Part B covers 80% of approved medical services, including doctor visits, outpatient procedures, and medical equipment. However, you're responsible for the remaining 20% coinsurance plus the annual Part B deductible, which increased to $257 in 2025. For major medical procedures, that 20% can translate to thousands of dollars in unexpected expenses.

Services Medicare Doesn't Cover

Medicare excludes several important healthcare services that many seniors need:

• Dental care and dentures
• Vision care and eyeglasses
• Hearing aids and hearing exams
• Long-term care services
• Cosmetic surgery
• Acupuncture (in most cases)
• Healthcare while traveling outside the United States

Prescription Drug Coverage Gaps

While Medicare Part D provides prescription drug coverage, changes in 2025 have restructured how costs work. The previous "donut hole" coverage gap has been eliminated, and out-of-pocket spending is now capped at $2,000 annually. Despite this improvement, you'll still face monthly premiums, deductibles, and copayments before reaching the catastrophic coverage threshold.

Medigap: Your Primary Solution for Coverage Gaps

Medicare Supplement insurance, commonly called Medigap, is specifically designed to fill the gaps left by Original Medicare. These standardized plans work alongside your Medicare benefits to reduce or eliminate your out-of-pocket costs.

How Medigap Works

When you receive medical care, Medicare pays its portion first, then your Medigap plan pays its share according to your plan's benefits. This coordination means you'll face fewer surprise bills and have more predictable healthcare costs throughout the year.

Popular Medigap Plan Options

Plan G is currently the most popular choice for new Medicare beneficiaries. It covers:

• Part A coinsurance and hospital costs
• Part B coinsurance (the 20% Medicare doesn't cover)
• First three pints of blood
• Part A hospice care coinsurance
• Skilled nursing facility care coinsurance
• Part A deductible
• Part B excess charges (when doctors charge more than Medicare's approved amount)

The only gap Plan G doesn't cover is the Part B deductible ($257 in 2025), which you'll pay out-of-pocket.

Plan F and Plan C offer more comprehensive coverage, including the Part B deductible, but these plans are only available if you were eligible for Medicare before January 1, 2020. If you qualify for these plans, they provide the most complete coverage available.

Plan N offers a lower-premium alternative that covers most Medigap benefits but requires small copayments for doctor visits and emergency room visits that don't result in admission.

Medicare Advantage: An Alternative Approach

Medicare Advantage plans provide another way to address Medicare's coverage gaps. These private insurance plans replace your Original Medicare benefits and often include prescription drug coverage, dental, vision, and hearing benefits in one package.

Key Advantages of Medicare Advantage

• Out-of-pocket maximums: Unlike Original Medicare, these plans cap your annual expenses, providing financial protection against catastrophic medical costs
• Additional benefits: Many plans include services Original Medicare doesn't cover, such as dental cleanings, eye exams, and wellness programs
• Coordinated care: Plans often emphasize preventive care and care coordination through their provider networks

Important Considerations

Medicare Advantage plans typically require you to use their network of providers and may need referrals for specialist care. Additionally, plan benefits and costs can change annually, requiring you to review your coverage each year during the open enrollment period.

Strategies to Maximize Your Medicare Savings

Shop During Annual Open Enrollment

Medicare's Annual Open Enrollment Period (October 15 - December 7) gives you the opportunity to review and change your coverage. Even if you're satisfied with your current plan, comparing options annually can reveal better benefits or lower costs that could save you hundreds of dollars.

Take Advantage of Free Preventive Services

Medicare covers numerous preventive services at no cost to you, including:

• Annual wellness visits
• Screening tests for various conditions
• Vaccines and immunizations
• Counseling services for tobacco cessation and obesity

Using these services helps you stay healthy while maximizing your Medicare benefits.

Use In-Network Providers

If you choose a Medicare Advantage plan, staying within your plan's provider network helps you avoid unexpected charges. Before scheduling appointments, verify that your doctors and facilities participate in your plan's network.

Consider Telehealth Options

Many Medicare plans now cover telehealth services, which can be more convenient and cost-effective than in-person visits for routine care, follow-ups, and prescription consultations.

Appeal Denied Claims

If Medicare or your supplemental plan denies coverage for a service you believe should be covered, you have the right to appeal. Working with your healthcare provider to provide additional documentation often leads to successful appeals and significant savings.

2025 Medicare Updates That Affect Your Costs

The Inflation Reduction Act has brought important changes to Medicare Part D that can help reduce your prescription drug costs. The elimination of the coverage gap and the $2,000 annual out-of-pocket cap provide significant financial protection for beneficiaries with high medication costs.

Additionally, you can now spread your prescription costs throughout the year with monthly payment options, making expensive medications more manageable for your budget.

The standard Part B premium for 2025 is $185 monthly, representing an increase from the previous year. However, the annual Part B deductible remains relatively modest at $257.

Making the Right Choice for Your Situation

Choosing between Medigap and Medicare Advantage depends on your individual healthcare needs, budget, and preferences. Consider these factors:

Choose Medigap if you:

• Want the freedom to see any doctor who accepts Medicare
• Prefer predictable costs with minimal surprises
• Have chronic conditions requiring frequent specialist care
• Travel frequently and want coverage anywhere in the United States

Choose Medicare Advantage if you:

• Want additional benefits like dental and vision in one plan
• Prefer lower monthly premiums with annual out-of-pocket maximums
• Are comfortable using a network of providers
• Value care coordination and wellness programs

Getting Expert Guidance

Navigating Medicare's complexities can feel overwhelming, but you don't have to make these important decisions alone. At Borde & Associates, we specialize in helping individuals understand their Medicare options and find coverage solutions that protect both their health and their financial security.

Our experienced team can help you compare plans, understand costs, and identify strategies to maximize your Medicare benefits while minimizing your out-of-pocket expenses. We're committed to providing you with the personalized guidance you need to make confident decisions about your healthcare coverage.

Contact us today to schedule a consultation and learn how we can help you fill the gaps in your Medicare coverage while potentially saving thousands of dollars each year. Visit our Medicare options page or contact us directly to get started.

Remember, the decisions you make about Medicare coverage today will impact your healthcare costs for years to come. Taking the time to understand your options and work with knowledgeable professionals ensures you'll have the coverage you need at a price you can afford.

#Medicare #Medigap #SeniorSavings #HealthcareCosts #Medicare2026 #SupplementalCoverage #RetirementPlanning #MedicareSupplemet #HealthInsurance #SeniorBenefits

 

Insured Alternative to Bank CDs: Discover the Benefits of Multi Year Guaranteed Annuities (MYGA)

If you're currently keeping your hard-earned money in bank CDs, you're taking a conservative approach that prioritizes safety: and that's commendable. However, you might be leaving significant money on the table without realizing it. With interest rates on traditional bank CDs remaining historically low and annual taxation eating into your returns, there's a compelling alternative that savvy investors are increasingly turning to: Multi-Year Guaranteed Annuities (MYGAs).

MYGAs offer the same principal protection you value in CDs, but with substantially higher interest rates, tax-deferred growth, and specialized retirement planning features. Let's explore how this insured alternative to bank CDs could transform your financial strategy and help you build a more robust retirement foundation.

What Exactly Is a Multi-Year Guaranteed Annuity?

A Multi-Year Guaranteed Annuity (MYGA) is a type of fixed deferred annuity issued by insurance companies that guarantees a specific interest rate for your entire contract term. Unlike traditional fixed annuities where rates may only be guaranteed for the first few years, MYGAs lock in your rate for the complete duration: typically ranging from three to ten years.

When you purchase a MYGA, you make a lump-sum deposit with an insurance company, which then guarantees your fixed interest rate for your chosen term length. Your money compounds at this guaranteed rate without any annual tax obligations, allowing for more efficient wealth accumulation than comparable bank products.

The Interest Rate Advantage: Earning More on Your Safe Money

One of the most compelling reasons to consider MYGAs over bank CDs is the significant interest rate difference. While bank CDs typically offer rates well below inflation, current MYGA rates generally range between 3.50% and 5.25% annually, depending on term length and current market conditions.

This rate differential isn't coincidental: it's structural. Insurance companies can invest in longer-term assets and pass along better returns to investors while still maintaining contractual guarantees. Banks, constrained by different regulatory requirements and business models, simply cannot offer comparable rates on their CD products.

For example, if you're currently earning 2.5% on a five-year bank CD, switching to a comparable MYGA earning 4.5% could increase your annual earnings by 80%. Over time, this difference compounds dramatically, potentially adding thousands of dollars to your retirement savings.

Tax Deferral: The Game-Changing Advantage

Perhaps the most powerful benefit of MYGAs over bank CDs is tax deferral. With a traditional bank CD, you're required to pay income taxes annually on the interest earned, even if you don't withdraw a single penny. This annual tax obligation reduces your effective return and limits the power of compound interest.

MYGAs operate differently. You pay no taxes until you actually withdraw funds, allowing your earnings to compound on a pre-tax basis. This tax-deferred growth can make a substantial difference over time, particularly if you're in a higher tax bracket during your working years and expect to be in a lower bracket during retirement.

Consider this example: If you're in a 24% tax bracket and earn 3% annually on a $100,000 CD, your after-tax return is only 2.28%. With a MYGA earning 4.5% with full tax deferral, you're earning nearly double the effective rate. Over a ten-year period, this difference could result in tens of thousands of additional dollars in your account.

Principal Protection and Security Features

Like bank CDs, MYGAs provide complete protection of your principal investment. Your initial deposit is guaranteed by contract, and you'll never lose money due to market fluctuations. This makes MYGAs ideal for the portion of your portfolio where you absolutely cannot afford losses.

While bank CDs are FDIC-insured up to $250,000, MYGAs are backed by state guaranty associations, which provide similar protections. These associations step in if an insurance company fails, typically covering substantial amounts of your investment. The insurance industry's regulatory framework and reserve requirements provide additional layers of protection for your funds.

It's worth noting that insurance companies are highly regulated and maintain strict reserve requirements. The industry has an excellent track record of meeting contractual obligations, making MYGAs a reliable choice for conservative investors seeking guaranteed returns.

Flexibility and Liquidity Options

While both CDs and MYGAs are designed as longer-term investments, MYGAs often provide superior flexibility. Many MYGA contracts allow penalty-free withdrawals of up to 10% annually after the first year, giving you access to a portion of your funds if unexpected needs arise.

Additionally, most MYGAs include provisions for penalty-free withdrawals in cases of terminal illness, nursing home confinement, or other qualifying life events. This built-in flexibility can provide peace of mind that your money isn't completely inaccessible during emergencies.

Retirement Planning Features That CDs Cannot Match

MYGAs shine brightest when viewed as retirement planning vehicles. Unlike bank CDs, which simply mature and require you to figure out your next step, MYGAs offer sophisticated settlement options designed specifically for retirement income.

At the end of your MYGA term, you can:

• Renew at updated rates
• Transfer to other annuity products
• Begin taking systematic withdrawals
• Convert to a guaranteed lifetime income annuity
• Withdraw your funds entirely

This flexibility allows you to adapt your strategy as retirement approaches. You might start with a MYGA for accumulation, then transition to an immediate annuity for guaranteed lifetime income: creating a seamless retirement income plan that bank CDs simply cannot provide.

Understanding the Commitment

While MYGAs offer compelling advantages, they do require a longer-term commitment than you might be accustomed to with bank CDs. Early withdrawal penalties (surrender charges) apply if you need to access more than the allowed annual withdrawals before your term expires. These penalties typically start high and decline over time, completely disappearing by the end of your contract term.

This commitment structure is actually beneficial for retirement savers, as it encourages the long-term thinking necessary for successful retirement planning. The tax-deferred growth and higher interest rates more than compensate for the reduced liquidity, especially if you're using MYGAs for money you don't need immediate access to.

Who Should Consider MYGAs?

MYGAs are particularly well-suited for individuals who:

• Have money currently in bank CDs earning low rates
• Are saving for retirement and can commit funds for several years
• Want to avoid annual tax bills on investment earnings
• Seek higher returns than bank CDs without market risk
• Are in higher tax brackets and want to defer income
• Need guaranteed returns for a portion of their portfolio
• Want access to sophisticated retirement income options

If you're within 10-15 years of retirement and have substantial funds in low-yielding CDs, MYGAs deserve serious consideration as part of your overall financial strategy.

Making the Transition: Next Steps

Moving from bank CDs to MYGAs isn't complicated, but it does require careful planning. You'll want to consider factors such as your time horizon, liquidity needs, current tax situation, and overall retirement planning goals.

The key is working with experienced professionals who understand both products and can help you evaluate whether MYGAs align with your specific situation. At Borde & Associates, we specialize in helping individuals optimize their safe money strategies and build more efficient retirement income plans.

We encourage you to explore how MYGAs might enhance your current CD strategy. With proper planning and implementation, you could significantly increase your returns while maintaining the principal protection and guarantees you value. Your future self will thank you for taking action today to maximize your safe money growth potential.

#MYGA #Annuities #CDAlternative #InterestRates #RetirementPlanning #SafeSavings #2026Coverage #FinancialPlanning #TaxDeferred #GuaranteedReturns #RetirementSecurity