If 55-64 are allowed to buy into medicare

[huusom]

If it happenned as proposed by the Senate. How much do we expect to pay for an individual policy?

 

[ziggy29]

And another question is, what will happen to Megacorp-provided medical benefits for folks over 55? Will they just give these employees the money to buy into Medicare, or will there be anti-discrimination laws to prevent this?

 

[samclem]

As one senator said--it's like letting a bunch of people board a sinking ship.

To Ziggy's point: I think employers and providers of retiree benefits will do whatever is cheapest that meets their obligations. It will probably cost less to let eligible employees go on Medicare and pay for a supplemental policy. And, once on Medicare, some retirees will find it possible to quit the workforce, so they won't be paying in to SS or Medicare anymore, thus making these programs go further into the red.

Well, it's only money.

 

[Stevewc]

I saw a report last night mentioning a cost around $550 mo.
I can't seem to pull anything up on the Internet with the cost mentioned right now though.
A question that popped in my mind was, what about this 55 year old person's family? I mean if a guy needs coverage and had to buy a policy for himself and then another to cover his family, he has gained nothing? Right?
I'm not referring to myself or my family in this, just saying/asking/thinking out loud.
Steve

 

[ziggy29]

I worry about the "adverse selection" aspect of it. I suspect that if 55 year olds *can* sign up for Medicare but private insurance options are still available, Medicare will get all the folks who are the most costly to insure, for whom private insurance is cost-prohibitive if available at all.

 

[scrabbler1]

I worry about the "adverse selection" aspect of it. I suspect that if 55 year olds *can* sign up for Medicare but private insurance options are still available, Medicare will get all the folks who are the most costly to insure, for whom private insurance is cost-prohibitive if available at all.

Having worked in the actuarial field for 23 years, this was my first thought, too. Otherwise, wouldn't Medicare's finances be helped by supposedly younger and healthier people (than the older ones now in the program) enrolling?

 

[M Paquette]

I haven't found any hard numbers in the proposals for the cost, but as a 'buy-in' I'd expect the cost to be similar to the current buy-in for someone who has not accumulated any credits (quarters of work making at least some threshold of Medicare tax payment).

That would put the hospital-only coverage (Part A) at just over $400/month, and unsubsidized doctor visit, etc coverage (Part B) at a bit over $300/month.

Call it around $700-$750/month for a fairly low deductible and copay medical plan. That's not too terribly different from what such a plan costs a 55 year old in excellent health. That 'in excellent health' is the gotcha, of course.

 

[M Paquette]

I worry about the "adverse selection" aspect of it. I suspect that if 55 year olds *can* sign up for Medicare but private insurance options are still available, Medicare will get all the folks who are the most costly to insure, for whom private insurance is cost-prohibitive if available at all.

Yah. I'd sort of expect the "Medicare Effect" to show up here, with almost all plans for those 55 and older being replaced with plans resembling Medicare Advantage or similar supplemental plans, forcing Medicare to be used for primary coverage, at least for hospitalization (Part A coverage).

 

[rescueme]

And another question is, what will happen to Megacorp-provided medical benefits for folks over 55? Will they just give these employees the money to buy into Medicare, or will there be anti-discrimination laws to prevent this?

For me (and my DW) that is the question. We're about to turn 62 - three years away from traditional Medicare.

I'm retired (my DW still wo*ks) but is on my policy and I pay a monthly preimum to my former company as co-pay to their retirement plan. In addition, they currently certifiy that if I stay with their plan (post-Medicare), my benefit (also requiring a small co-pay preimum) is better than going to Medicare Part B, along with Part D (drug).

A lot of things to be watching as this unfolds, IMHO...

 

[Rich_by_the_Bay]

I worry about the "adverse selection" aspect of it. I suspect that if 55 year olds *can* sign up for Medicare but private insurance options are still available, Medicare will get all the folks who are the most costly to insure, for whom private insurance is cost-prohibitive if available at all.

I imagine they will make it universal (other than age), just like Medicare part B is now so that adverse selection is not an issue. Supplemental insurance will boom, IMHO.

I'm interested in hearing what unfolds with this initiative. Could be good for a lot of ERs.

 

[ziggy29]

I imagine they will make it universal (other than age), just like Medicare part B is now so that adverse selection is not an issue. Supplemental insurance will boom, IMHO.

If they did that, it would presumably solve the "adverse selection" concern.

But I think it would create even more cost-shifting to private insurance, cash payers and those who aren't subject to Medicare's reimbursement rates.

And if that's the case, then it's not a matter of being "allowed to buy in" to Medicare, but rather expanding Medicare down to age 55.

 

[LARS]

I worry about the "adverse selection" aspect of it. I suspect that if 55 year olds *can* sign up for Medicare but private insurance options are still available, Medicare will get all the folks who are the most costly to insure, for whom private insurance is cost-prohibitive if available at all.

And so you have perfectly highlighted the concept of unintended consequences that flow from most decisions the Federal Government makes...

 

[teejayevans]

So, for those who want to retire early but can't get HI, here is the plan:
Quit megacorp at 53.5, use cobra until you turn 55
At 55, used medicare.
TJ

 

[audreyh1]

One big deal on medicare eligibility for us younger ERs - portable health care! Most of us with individual insurance can't move across state lines, because we would have to reapply for health insurance and right now there is too much risk in being denied or whatever. The older you get, the harder this is - until you reach medicare age!

Audrey

 

[FIRE'd@51]

For comparison, here are some numbers for 2010 from the Medicare website for those over 65 who buy into Medicare:

Part A: $461 per month

Part B: $110.50 per month (assuming you don't have to pay the higher means-tested amount).

Additionally, a comprehensive Supplemental policy (e.g. Plan F) and a Part D drug policy will add about $150 or so per month (depending upon where you live), for a total of about $720 per month per person. This would give you essentially complete coverage except for drug copays.

For two people, this is still over 17K per year, which ain't exactly "chump change", even for full coverage. So unless it is made mandatory for all 55-65 year-old's, there will likely be many "healthy" retirees who will elect to purchase high-deductible individual coverage or HSA's, which could lead to the adverse selection problem Ziggy mentioned.

I guess it all boils down to the fact that good healthcare is expensive no matter how you slice it.

 

[oldtrig]

I wonder how many people in that age group would retire today and let someone else have their job if this happens ? I know I would. There are so many people here where I live that are just getting by because one in the family has lost a job. If I were to retire someone who really needs to work would take my job. I will be over 65 if it does pass so it would not effect me but it would my wife. I hope they pass it. oldtrig

 

[ratface]

I hope they pass it too. You cannot assume you are going to be healthy up to the point of eligibility. As many of you know I was unfortunate enough to get cancer this year. I have great insurance now. I want to retire next year. My employer said it's only staying in the insurance game until 2013. Assuming I live that long how do I buy health insurance with a pre-existing condition? IMHO this is the most important aspect of any national health insurance program.

 

[Rich_by_the_Bay]

A potential problem is that MC now reimburses at a rate that is about .9 the cost of providing the service -- the provider loses 10% of his/her charges every encounter (per an NPR segmentlast evening). This is made up for by commercial carrier and out-of-pocket payments, along with emphasizing certain services that for some reason are amply reimbursed under Medicare.

Increasing numbers of doctors may opt out of MC if this passes, at a time when there is a looming shortage of primary care doctors. Still, I support the initiative for the greater good with careful attention to making allowable charges sustainable.

 

[Dawg52]

For comparison, here are some numbers for 2010 from the Medicare website for those over 65 who buy into Medicare:

Part A: $461 per month

Part B: $110.50 per month (assuming you don't have to pay the higher means-tested amount).

Additionally, a comprehensive Supplemental policy (e.g. Plan F) and a Part D drug policy will add about $150 or so per month (depending upon where you live), for a total of about $720 per month per person. This would give you essentially complete coverage except for drug copays.

For two people, this is still over 17K per year, which ain't exactly "chump change", even for full coverage. So unless it is made mandatory for all 55-65 year-old's, there will likely be many "healthy" retirees who will elect to purchase high-deductible individual coverage or HSA's, which could lead to the adverse selection problem Ziggy mentioned.

I guess it all boils down to the fact that good healthcare is expensive no matter how you slice it.

God I hope we will be able to keep our individual plan. My high ded plan cost me $207/mo.

 

[youbet]

God I hope we will be able to keep our individual plan. My high ded plan cost me $207/mo.

It's going to be very, very interesting to see how the responsibility of paying shifts among citizens as all this "reform" manifests itself. Even if the optimistic pundits are correct and our total aggregate cost of health care is not increased by the proposed changes (which I doubt), there will be changes regarding who is paying how much.

Right now, I'm giving my FIRE status a big bear hug and holding on for dear life. We've been enjoying a nice RE lifestyle for 3.5 yrs now, despite the recession. But if our current subsidized health coverage is changed for the worse or if Medicare costs significantly more (when we get there) than it does now, it doesn't bode well for continuing to enjoy today's level of discretionary spending.

I'm all for my fellow citizens having access to health care given that they conduct themselves responsibly. But please, please, Mr Govt don't do anything to screw up the youbet family current health insurance situation or increase our Medicare costs in the future.......

 

[TomCat]

I hope they pass it too. You cannot assume you are going to be healthy up to the point of eligibility. As many of you know I was unfortunate enough to get cancer this year. I have great insurance now. I want to retire next year. My employer said it's only staying in the insurance game until 2013. Assuming I live that long how do I buy health insurance with a pre-existing condition? IMHO this is the most important aspect of any national health insurance program.

My wife and I are in a position similar to Ratface...ie; insured but not "insurable". We currently pay about $650/month each for a pretty basic 80/20 plan with a $3000-$4000? max out of pocket per year. Covers very little "preventive" type charges. This was a "continuation" Blue Cross plan available after Cobra ran out. While a bit expensive we are very glad to have the coverage.

For the 55-65 age group with existing medical "issues" I was hoping for two primary changes.

1) Eliminate pre-existing condition requirement in an insurance application

2) Require "community rating" for all policies...ie; price policy in a manner similar to what a large group gets for pricing...perhaps allow a small "administration" upcharge for extra paper work vs large employer plan

My two requests would primarily help those in my circumstances...ie; 55-65...pre-exisiting conditions...with desire to shop insurance markets for best coverage w/o limitation of pre-exisiting conditions. The question of age pricing is one I have not thought through. Should and "new" insurance be completly age priced...should there be broad age banding - say 10 year bands 40-50/50-60, etc...or should all ages be priced into policy pricing. Obviously, I would not mind pricing like large groups which only have one composite price regardless of age.

BTW...I have had health insurance coverage continuosly since late teens...not a case of trying to get coverage only after finding out we need it.

I realize that congress has multiple issues other than mine to address

I also realize that since we are soon 63...we are unlikley to benefit much by the current proposal...but will probably pay for it one way or another.

FWIW on a COLD day in Minnesota TomCat

 

[youbet]

but will probably pay for it one way or another.

Now there is a sure bet!

 

[mickeyd]

I fail to see how adding millions of beneficiaries age 55+ to a system that is plagued with billions of dollars of fraud and abuse annually and slated to cave in in about 5 years, is a good idea for anyone.

 

[Rustic23]

I have not been able to figure out how this bill would effect me or DW. I am concerned however that it will lead to a doctor shortage, and it will break the piggy bank. Medicare can not be paid for as is. I don't see how this new bill is going to be paid for, and I don't think congress knows or cares.

 

[teejayevans]

I fail to see how adding millions of beneficiaries age 55+ to a system that is plagued with billions of dollars of fraud and abuse annually and slated to cave in in about 5 years, is a good idea for anyone.

You miss the part where they are going to save 436 billion over the next 10 years. I wouldn't get worked up about it, recent reports this idea is DOA.
TJ