In February I told you about Ruth’s brother, Greg, passing away and the great support his widow, Toni, had received. Toni’s sister, Linda, and Toni’s best friend, Judy, both moved to be near her. Judy had moved from Southern Arkansas and loves it here so much she should be on the local Welcome Committee!
Two of Judy’s friends called the other day. Since both are moving here and both are turning 65, they asked the same question – “should I keep my group coverage or sign up for Medicare?” Sounds like a simple question, right? not necessarily. I suggested we compare benefits (group insurance vs Medicare benefits) and cost (the premium). In our initial conversation, we talked about Medicare Supplement and Medicare Advantage plans -what they do and don’t do including the cost. Even though Scottie and Jan are both only interested in Medicare Supplement plans, their situations are very different. Scottie and Jan gave me a summary of their current benefits, what it will cost them when they leave, a list of their prescriptions and the pharmacy they want to use. They also provided their household modified adjusted gross income. Why do I need their income? Medicare Part B and Part D have an “income-related monthly adjustment” (IRMA) based on income. Even though this affects only a small percent, that small percent could include you! Based on Scottie’s income, she will have an extra premium (IRMA) to pay for her Medicare Part B and Part D. Her group monthly premium is about $800 which is more than her Medicare Part B + IRMA for Part B and D + the Medicare Supplement and Prescription plans she’s interested in. Now let’s look at the benefits of each plan. Her group plan has a $3000 deductible and maximum out of pocket of $5000. The Medicare Supplement plan she’s interested in has a $226 deductible and the drug copays are about the same as she’s paying now. Huge difference in benefits. Scottie decided to sign up for Medicare and a Medicare Supplement and prescription plan. Jan’s situation is different. She will not have an extra premium for Medicare Part B or Part D. Her group insurance monthly premium is $108 because she is a dependent on her husband’s plan. Her Part B cost of $164.90 + the Medicare Supplement and prescription plans she’s interested in would be approximately $330 monthly. The group insurance monthly premium is much less. What about her benefits? Her group plan has an $850 deductible and a maximum out of pocket of $2850. The Medicare Supplement plan she’s interested in has a $226 deductible. Even though her group plan has a higher deductible and higher maximum out of pocket, Jan feels her overall potential cost (premium + deductible + maximum out of pocket) could be lower staying on the group plan since she never meets her deductible. Should we compare your benefits and costs? Call 501-868-6650 and say “Caroline, can we talk?
0 Comments
|
AuthorCaroline Beauchamp specializes in personalized life and health insurance solutions. Archives
September 2023
Categories
All
|