Cruisin' Till Your Blue

Good morning, readers! Here's an interesting one: What happens when your spouse is still employed and their employer offers you health insurance? Do you take it? Can you take it? This week, we take a deeper dive into this topic. Plus, is cruising on a ship the ultimate cheat code to retirement savings? Enjoy the read!
-The Editors

🏥Medicare Insights:

Making Medicare Work When Your Spouse is Still Employed: A Straightforward Guide
Navigating Medicare while your spouse is still working and providing health insurance can feel like trying to fit a square peg into a round hole. Do you take your spouse’s plan and skip on enrolling in Medicare or do you enroll in Medicare? Here's how to juggle Medicare and employer-sponsored health insurance without losing your mind—or your coverage.

Know the Lay of the Land
So, you’ve hit the magic age of 65 and Medicare is knocking at your door. But wait—your spouse is still working and you’re both covered under their employer’s health insurance. What now? First, understand this: Medicare isn’t an all-or-nothing deal. You can blend it with existing coverage to suit your needs.

Enroll in Medicare Part A – It's Free!
First up, sign up for Medicare Part A (hospital coverage). It’s free if you or your spouse have been paying Medicare taxes for at least 10 years. Even if you have great employer coverage, Part A can be a helpful backup without costing you anything extra.

Part B or Not Part B
Medicare Part B covers outpatient care, doctors' services, preventive services, and medical equipment. This one comes with a monthly premium, so the decision to enroll isn’t as straightforward. Here’s where it gets tricky:

• If the employer has 20 or more employees, the employer’s insurance is the primary payer, and Medicare is secondary. This means the employer insurance pays first, and Medicare steps in to cover some of the remaining balance (if any). In this case, you might delay Part B to avoid paying the premium twice for similar coverage.

• If the employer has fewer than 20 employees, Medicare is the primary payer. This makes enrolling in Part B a wise move to ensure you’re fully covered.

Avoiding the Late Enrollment Penalty
Delaying Part B can save money now, but beware the late enrollment penalty. If you don’t sign up when you’re first eligible and don’t have other creditable coverage, you could end up paying higher premiums when you do enroll. The good news? Employer health coverage counts as creditable, so you can delay Part B without penalty as long as your spouse is still working and you’re covered under their plan.

Coordination of Benefits: Who Pays What?
When you have both Medicare and employer insurance, they’ll coordinate benefits to determine who pays first. Make sure to talk to your spouse’s HR department or benefits administrator to understand how the employer plan works with Medicare. This will help you avoid unexpected bills and ensure you’re maximizing your coverage.

Prescription Drug Coverage
If the employer’s plan includes prescription drug coverage, you might not need a separate Medicare Part D plan. However, compare the coverage carefully. Sometimes, adding Part D can save you money on prescriptions. And just like with Part B, if you delay Part D, make sure the employer plan is considered creditable to avoid penalties later.

For a lengthy breakdown on Medicare explore here.

🌟Retirement Talk:

Life at Sea Over Traditional Retirement Living?
A retired couple from Australia recently made headlines with their unconventional approach to retirement. Rather than settling down in a 55-and-over community or a senior living facility, Marty and Jess Ansen chose to spend their retirement at sea. Since June 2022, the Ansens have embarked on 51 consecutive Princess Cruises, spending a total of 795 days at sea — just under two years and two months. Their primary motivation for this unique lifestyle? The ease and affordability of cruising compared to traditional retirement living options.

The Appeal of Retirement at Sea
Living on a cruise ship offers several appealing benefits for retirees like the Ansens. Cruise ships provide all-inclusive living with meals, housekeeping, entertainment, and social opportunities. The convenience and luxury of cruise life can rival — and sometimes surpass — that of many retirement communities. For the Ansens, the predictability of daily routines and the variety of experiences available onboard made the idea of cruising an attractive alternative to more conventional retirement living arrangements.

Cruise Lines Embracing the Trend
Recognizing the growing interest in long-term cruising among retirees, several cruise lines have started offering extended voyages designed to cater to this demographic. For instance, Royal Caribbean's upcoming Ultimate World Cruise will embark on a 274-night journey, visiting ports on all seven continents. This comprehensive package includes airfare, a deluxe beverage package, shore excursions, complimentary laundry service, and internet access, with fares starting at $58,499 for an ocean view stateroom and $74,654 for a balcony stateroom.

Alternatively, Life at Sea Cruises offers a three-year voyage that visits 375 ports in 135 countries, with annual costs starting at $29,999 per person. These packages provide a structured, yet adventurous, lifestyle that can appeal to those looking to avoid the monotony often associated with traditional retirement settings.

Comparing Costs: Cruise Living vs. Retirement Homes
The cost of retirement living varies significantly based on the type of care required and the geographic location. In the United States, the median cost of a room in an assisted living facility is $4,774 per month, or $57,288 annually. In some states, these costs can exceed $80,000 per year. For those needing more intensive medical care, a private room in a nursing home averages over $9,000 per month, with costs reaching up to $15,000 per month in high-cost areas.

Is Living on a Cruise Ship Really Cheaper?

The affordability of long-term cruising versus traditional retirement living largely depends on several factors, including the cruise line, the type of stateroom, and the additional services required. While luxury cruises can be quite expensive, budget-conscious retirees can find more economical options that make living at sea a financially viable alternative. 

Considerations and Caveats
Long-term cruising is typically only practical for those in good health. As medical needs increase, the practicality and cost-effectiveness of living on a cruise ship may diminish. Emergency medical care on a cruise ship or in foreign ports can be expensive and less accessible than in a traditional retirement community or nursing home.

Further, while the lifestyle can be more enjoyable and adventurous for some, it may not suit everyone. The constant travel and small living quarters can be challenging for those who prefer stability and space.

For retirees like the Ansen’s, long-term cruising offers an exciting and cost-effective alternative to traditional retirement living. While it isn't a one-size-fits-all solution, it presents a unique option for those who are healthy, adventurous, and have the financial means to make it work. However, it's important to note that this comparison specifically addresses the costs of living on a cruise ship versus residing in an assisted living facility or nursing home. A 55-plus community will likely be a more affordable option than either of these, providing a middle ground for those seeking a balance between cost and comfort.

Will we see 👀 you at sea🌊?

📚Reader’s Nook

"It Ends With Us" by Colleen Hoover
Lily Bloom starts a new life in Boston, where she meets and falls for Ryle Kincaid, a charismatic neurosurgeon with a dark side. As their relationship faces challenges, Lily reconnects with her first love, Atlas Corrigan, bringing back unresolved emotions. When Ryle's abusive behavior emerges, Lily confronts the painful parallels to her parents' toxic relationship. She must find the strength to break the cycle of abuse and build a better future for herself.

"It Ends With Us" is praised for its emotional depth and realistic portrayal of sensitive issues, delivering a powerful message about breaking the cycle of abuse.

We love hearing from our community members. Let us know what you are reading here!

🎉Two Truths and a Lie, Uncover the Fib:

1. The moon orbits the Earth every 27.3 days.

2.  Elephants are the only mammals that can't jump.

3. There are more stars in the universe than grains of sand on all the beaches on Earth.

Answer at the end of the newsletter

🤝Community Corner:

Q:  As my wife and I transition into retirement in our early 60s, we're eager to embark on frequent travel, both domestically and internationally. We're considering an annual travel insurance plan to cover all our trips, ensuring we have emergency medical coverage outside of our Medicare coverage, and the flexibility to cancel for any reason. Given our active lifestyle, we're weighing the costs and benefits of such a plan. Could you provide insight into whether these annual insurance plans are worth the investment?
Justin, Age 60, Albany, New York

Over 64: As you embark on this exciting chapter of retirement, where travel promises to be a cornerstone of your newfound freedom, the importance of travel insurance cannot be overstated. It's not merely an expense but a wise investment in ensuring your adventures remain uninterrupted and your financial security intact.

With the unpredictability of health and travel logistics, having a reliable safety net is essential. Travel insurance provides exactly that—it protects you from the unexpected, whether it's a sudden illness requiring medical attention abroad or unforeseen circumstances forcing you to cancel plans.

By investing in travel insurance, you're not just safeguarding your finances; you're safeguarding the freedom to explore, discover, and create lasting memories. So, as you plan your journeys—whether it's the allure of international travel or the tranquility of a winter retreat in the southern U.S.—remember that travel insurance is essential. It's there to support your dreams, protect your health, and allow you to embrace this new phase with enthusiasm and security.

Happy travels!

Do you have a question you'd like one of our experts to answer?
Shoot us an email at [email protected]! Each week, we feature one question from our readers. We'd love to hear from you!

Answer: - Answer- 2. In reality, while elephants are not known for their jumping abilities, they can indeed jump, although not in the same way as smaller mammals. They can lift all four feet off the ground simultaneously, which is considered a form of jumping.

Think you know someone who would love this newsletter? Share it with them and get rewarded.