Motley Fool Money – "Making the Most of Medicare, and the Bull Turns 3"

Date: October 18, 2025
Host: Robert Brokamp
Guest: Richard Chan (Founder & CEO of CoverRight)

Episode Overview

This episode tackles two major personal finance topics: a three-year retrospective on the current bull market in stocks, and a deep dive into Medicare during the annual open enrollment period. Host Robert Brokamp is joined by Richard Chan of CoverRight, who clarifies essential Medicare concepts, common pitfalls, and practical advice for making the best Medicare choices for 2026. The episode closes with actionable guidance on life insurance needs.

Key Discussion Points & Insights

1. The Bull Market Turns Three

(00:05 – 03:28)

• Milestone: The current bull market, beginning October 12, 2022, reaches its third year.
• Market Performance (Total return over three years as of Oct 15, 2025):
  • S&P 500: 90%
  • Nasdaq: 118%
  • Dow Jones: 60%
  • International stocks: 79%
  • Russell 2000: 52%
• Asset Surges: Gold +150%, Silver +178%, Bitcoin +478%
• Value Stocks: Still historically cheap compared to large-cap US growth stocks.
• Memorable Quote:
  "The current bull market turned three years old... Over the past three years, the S&P 500 has posted a total return of 90%, while the Nasdaq has soared 118%"
  (Robert Brokamp, 00:16)

2. Auto Industry Watch

(03:28 – 03:59)

• New Car Average Price: Now above $50,000; sub-$20,000 new cars have disappeared.
• Financing Trends:
  • Average down payment: $6,020 (lowest since 2021)
  • 19.1% of buyers have $1,000+ monthly payments
  • Over 20% of loans are for 7+ years
• Delinquencies: Subprime auto loan delinquencies near all-time highs (over 6% 60+ days late).
• Takeaway: Americans taking on riskier, longer-term auto debt amid high prices and rates.

3. Toll Scam Alert

(00:05 – 03:28)

• Scam Losses: Over $1 billion stolen in toll scam texts over three years.
• Volume: 330,000 scam texts in a single day last month; 350% monthly volume increase since Jan 2024.
• Scam Tactics: Messages impersonate EZPass, link to phishing sites for credit card/bank info.
• Actionable Advice: "Never click on a link in a text or email asking for money."
  (Robert Brokamp, 03:17)

Deep Dive: Understanding Medicare (with Richard Chan)

(03:59 – 12:48)

A. Medicare Basics

(04:29 – 05:43)

• What is Medicare?
  "Medicare is the federal health insurance program for people who are over the age of 65 in the US...for most people, it is a mandatory transition."
  (Richard Chan, 04:40)
• Transition Risks: Failing to sign up on time leads to “late enrollment penalties” – up to 10% premium increase for every year missed, lasting for life.

B. What Medicare Covers (and Doesn't)

(05:00 – 06:35)

• Coverage:

  • "Medically necessary" services — doctor visits, hospital care.
  • Excludes routine dental, vision, and long-term care.

• Supplemental Private Plans: Some private (Medicare Advantage) plans expand benefits to include dental/vision.

• Memorable Quote:
  “Medicare as a program generally will cover what they consider in quotes, medically necessary services...it won't cover things like routine dental, routine vision, at least not in the basic program.”
  (Richard Chan, 05:43)

C. Key Steps As You Approach 65

(06:44 – 07:58)

• Medicare Isn’t Free: Monthly premiums apply (varies by income, can be triple for high earners).
• Enrollment Windows Critical:
  • Start considering Medicare 6 months before age 65.
  • Your current work coverage may not exempt you from late penalties.
• Premiums Based on Income from Two Years Prior.
  "If you are going to apply for Medicare at age 65, you have to start thinking about really at 63."
  (Robert Brokamp, 07:42)

D. 2026 Open Enrollment & Government Shutdown Risks

(08:02 – 09:11)

• Medicare Open Enrollment: Oct 15 – Dec 7, 2025.
• Impact of Federal Shutdown:
  • Program itself continues, but only “critical services.”
  • 50% of Medicare staff might be furloughed. Expect slower responses for direct inquiries and new sign-ups.

E. 2026 Medicare Market Changes

(09:11 – 10:13)

• Rising Costs:
  • Medicare Advantage: Insurers dropping plans, changing benefits, market consolidation.
  • Medicare Supplement (“Medigap”): Double-digit percentage premium increases are “not uncommon.”
• Action Step:
  "All in all a decent amount of change which warrants people making sure that they're looking at their benefits and seeing that ever covers what they need for 2026."
  (Richard Chan, 09:56)

F. How to Make the Best Medicare Choice

(10:13 – 11:30)

• Review Your Annual Notice of Change: Arrives each September, spells out plan changes or discontinuations for next year.

• Check Provider Networks: Doctors/hospitals may change which plans they accept.

• Get Help:

  • State Health Insurance Assistance Program (SHIP)
  • Licensed agents/brokers (like CoverRight)

• Quote:
  "First and very most important one is review your annual notice of change."
  (Richard Chan, 10:33)

G. Evaluating Help: SHIP vs. Agents

(11:30 – 12:28)

• SHIP: Volunteer-based, offers general info but not always expert on specific insurance options.

• Licensed Agents/Brokers:

  • Licensed/certified to understand plan details, especially for complex drug or specialty needs.
  • More in-depth advice for selecting and enrolling in the right coverage.

• Quote:
  “There's a lot of ins and outs as it relates to drug costs, how the drugs work, maybe you've got special drugs and how to get approvals for those...”
  (Richard Chan, 12:28)

Notable Quotes & Memorable Moments

• Brokamp on the Bull Market:
  "The current bull market turned three years old...The S&P 500 has posted a total return of 90%." (00:16)

• Chan on Enrollment Penalties:
  "If you miss your window to sign up...there are penalties up to 10% of your premium for every single year you could have had Medicare but you didn't. And they are lifelong." (05:08)

• Medicare's Complexity:
  "When you turn 65, there is a premium you need to pay unless you have low income assistance...for some high income earners, depending on your bracket, it's as much as three times the standard rate." (06:51)

• Annual Change Awareness:
  "Review your annual notice of change...it may be the one that says your plan isn't renewing." (10:33)

Additional Segment: Life Insurance Needs

(13:21 – End)

• Who Needs Life Insurance?
  • "You generally only need it if someone is relying on your income."
• Coverage Rules of Thumb:
  • 10x your income (+ $150k–$200k per college-aged child)
  • Or 15x your income (to replace income indefinitely at 5% returns)
  • Online calculators can help refine the amount.
• Recommendation: Re-evaluate your life insurance coverage to ensure your family is financially protected.

Resources Mentioned

• Medicare.gov: Official plan and comparison tool.
• State Health Insurance Assistance Program (SHIP): Free, unbiased resource.
• CoverRight: Licensed agent-broker support for Medicare choices.

Final Thoughts

This episode combines a sharp overview of recent financial trends with a thorough, practical guide to Medicare decisions facing retirees. Key advice: start Medicare planning early, read annual plan notices, verify provider networks, and seek professional help if needed. Also, reassess life insurance based on evolving family needs.

"Fool on, everybody."
(Robert Brokamp, End)