Medicare and the various supplemental plans are complicated, which leads some financial planners to work with a specialist who deals primarily with Medicare questions. “A financial planner could be licensed to do what I do, but it is a rabbit hole,” says Kellie Fogarty, with Fogarty Insurance Advisors in Camp Hill, PA. “It is not exciting to them compared to what they do with money management.” Because she knows the nuances of Medicare, she will work with a financial planner’s clients to make sure that clients are getting the healthcare plans that are best for them, she says. “It’s a matter of having someone who can show you these ropes,” says Fogarty, who worked with an insurance company for about ten years before going out on her own. A year ago, the Biden administration was talking about expanding Medicare to include additional benefits, such as hearing, and potentially dropping the eligibility age to 62. Since then, those discussions have dissipated, and several observers say they don’t expect an expansion any time soon. Pinnell says dropping the age to 62 would be a boon to the reverse mortgage industry because it would remove one barrier to early retirement. “Medicare at 62 would be great for our industry because it would open up a whole other marketplace for us,” he says, adding that he thinks the change would be too expensive and will not receive the necessary support in Congress. “At this point, the likelihood is pretty slim.” Loren Riddick, CRMP, national director of reverse lending for Thrive Mortgage in Alcoa, TN, agrees that an expansion of Medicare is unlikely but suggests that reverse mortgages remain a vital tool for older homeowners who face healthcare challenges. “Being able to tap into one’s equity as a bridge to better healthcare is imperative,” he says. “The pandemic truly magnified the concern about going to a nursing home, and the possible health concerns have been magnified. Being able to bring care to a senior’s home is without a doubt top of mind for our seniors today.” REVERSE MORTGAGE / MAY- JUNE 2022 31
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