SS and Medicare question

[oldtrig]

I was planning on retiring a while back but things did not work out so I am still working. I turn 65 next August and was wondering how much I would be paying for insurance supplements if I do retire then. I know it varies from state to state but a average figure would be nice. I have friends who are already on Medicare and they tell me health insurance only cost them about $100 per month not counting the $99 they take out of SS for Medicare. Other people tell me different figures. Thank
Old trig

 

[kaneohe]

left as an exercise for the student:

https://www.extendhealth.com/

if you get a supplement, consider a plan for Rx also.
if you get an Advantage plan, it may be included.

 

[meierlde]

I was planning on retiring a while back but things did not work out so I am still working. I turn 65 next August and was wondering how much I would be paying for insurance supplements if I do retire then. I know it varies from state to state but a average figure would be nice. I have friends who are already on Medicare and they tell me health insurance only cost them about $100 per month not counting the $99 they take out of SS for Medicare. Other people tell me different figures. Thank
Old trig

Note that Obama has proposed to change the way Part B deductables work, raising that deductable to 550 and putting a 7500 stop loss in, and forbidding the medigap insurance from paying the deductable. (Thus making medicare more like private health insurance). The idea is to reduce utilization by making the first few visits to the physician more expensive. Also forbid medigap from paying the first dollar co-insurance.

 

[JakeBrake]

Medicare part B premium is $115.40 per month for people who began Medicare in 2010 or after. Of course, your Medigap premium will vary depending on which policy you choose. As a Megacorp retiree my Medigap premium is about $60 per month which covers both DW and myself.

 

[SkisALot]

Note that Obama has proposed to change the way Part B deductables work, raising that deductable to 550 and putting a 7500 stop loss in, and forbidding the medigap insurance from paying the deductable. (Thus making medicare more like private health insurance). The idea is to reduce utilization by making the first few visits to the physician more expensive. Also forbid medigap from paying the first dollar co-insurance.

Wow! That's bad news. DH has Medicare and it's bad enough already. Doctors are paid very little and are very reluctant to either take a patient on Medicare - if they will at all - or spend any kind of time with him. We have basically taken DH's healthcare into our own hands and go to the 5 minute visit armed with what it is we have learned needs to be done. Obama's new "jobs bill" cuts Medicare payments to doctors even further. For example, recently, DH's doctor vist was billed at $160.00 (a specialist) and Meciare payed $28.00. If the new jobs bill passes, will the government pay $5.00 And by the way, here in California DH pays $156.00 per month for supplement insurance. It's the cheapest we can find.

 

[MichaelB]

I was planning on retiring a while back but things did not work out so I am still working. I turn 65 next August and was wondering how much I would be paying for insurance supplements if I do retire then. I know it varies from state to state but a average figure would be nice. I have friends who are already on Medicare and they tell me health insurance only cost them about $100 per month not counting the $99 they take out of SS for Medicare. Other people tell me different figures. Thank
Old trig

This recent thread has links and specific info on Medicare supplemental policies http://www.early-retirement.org/forums/f38/medicare-supplement-plans-extend-health-57758.html

 

[MichaelB]

Lets try to leave the politics out of the posts in this thread, please.

 

[oldtrig]

I am not sure you are pointing at me or not. I know you had my post in your post. I only asked what I thougt was a simple question. Sorry I asked.

 

[MichaelB]

I am not sure you are pointing at me or not. I know you had my post in your post. I only asked what I thougt was a simple question. Sorry I asked.

On the contrary, I thought your question was quite valid and has been asked by others. See my link to a recent thread with some posts that hopefully you will find helpful.

I was referring to responses that 1) speculate on policy changes, and 2) feel a need to comment on political aspects of Medicare or specific individuals involved in politics. Apologies for any confusion.

 

[Buckeye]

My mom pays $220 for her supplemental insurance in the Tampa Bay area. I don't remember the letter of the plan but I think it's the most comprehensive.

 

[FIREd]

My MIL pays about $140 a month for her Medicare supplemenal insurance From United Healthcare (plus an additional $40 a month or so for Medicare part D). She has one of the more comprehensive plans (plan J). She lives in Alabama.

 

[l2ridehd]

I am trying to work through all this Medicare, Medigap insurance and it seems very expensive. My problem is they base the premium on last year earnings. Due to some high bonus payments and other income windfalls I had a very good year. Not the normal income but they base the amount on a very short window. That drives my Medicare premium to $428 a month and my Medigap is going to be another $100. Seems excessive for the coverage and they get you again as you have to sign up or lose eligibility. I may have to work another year to get the income stream back to normal just to lower the payment. I need to check out if they adjust it going forward based on earnings in retirement. If I only get stuck one year I guess I can live with that. Just don't want it to be forever high based on a single really good year.

 

[Brett_Cameron]

I am trying to work through all this Medicare, Medigap insurance and it seems very expensive. My problem is they base the premium on last year earnings. Due to some high bonus payments and other income windfalls I had a very good year. Not the normal income but they base the amount on a very short window. That drives my Medicare premium to $428 a month and my Medigap is going to be another $100. Seems excessive for the coverage and they get you again as you have to sign up or lose eligibility. I may have to work another year to get the income stream back to normal just to lower the payment. I need to check out if they adjust it going forward based on earnings in retirement. If I only get stuck one year I guess I can live with that. Just don't want it to be forever high based on a single really good year.

Go to the Medicare web pages, they have provisions for changes in income. From what I understand they figure the premiums annually except when you are paying the penalty for not signing up for Part B as soon as you are eligible.

 

[JOHNNIE36]

Had discussion with BIL recently about supplemental coverage to Medicare. He has Mutual of Omaha as supplement for both he and my sister. Cost him just over $100 each/month. We are in a Medicare Advantage plan that costs us nothing, that is no premium. He says he would rather pay up front and have "no deductibles or copays" rather than our method. He had heart valve surgery this year at the Cleveland Clinic and I guess it didn't cost him anything. My wife had eye surgery this year in a hospitaland our total out of pocket so far has been $1020 for the both of us.

Just got the new info packet on our Advantage plan and I don't like the increases on copays for 2012. At 75, I have to start thinking about worse case senario. Going back to Medicare and a supplemental plan could be precluded by existing conditions. Have to check that out.

 

[ivinsfan]

Buckeye, have you had any dealings with the VA health system yet?
Now that my DH is getting closer to 65, I am trying to figure out if VA healthcare will eliminate the need to buy a medicare supplement. I'd be interested in hearing from anyone on the board that takes this approach. It appears the savings might be large. You would have a nut of 100-400 a month to use on health costs that aren't covered by Medicare or VA. However in our experience VA covers pretty much everything if you can get to them in time..IE in an emergency you might not be able to get to a VA provider.

 

[Moemg]

Medicare puts out a booklet that answers pretty much all of the questions and explains the difference between Medigap plans and Medicare Advantage plans . It also explains what will happen if you have other coverage .

 

[TN_INVEST]

jakebrake is correct. Medicare part B premium is $115.40 per month

The gap and drug plans will cost extra, depending on which one you choose and which state you live in.

For a 65 year old, they cost anywhere between $0 and about $200 per month.

 

[oldtrig]

Do I have to sign up for Medicare if I am still working? I thought I read where you be accessed more money if you do not sign up 90 days before you turn 65. Oldtrig

 

[MichaelB]

Do I have to sign up for Medicare if I am still working? I thought I read where you be accessed more money if you do not sign up 90 days before you turn 65. Oldtrig

Yes. Medicare says here

[FONT=Verdana, Helvetica]Even if you keep working after you turn 65, you should sign up for Medicare Part A. If you have health coverage through your employer or union, Part A may still help pay some of the costs not covered by your group health plan. Call the Social Security Administration at 1-800-772-1213 to sign up. However, you may want to wait to sign up for Medicare Part B if you or your spouse are working and have group health coverage through you or your spouse's employer or union. (See note below if you work for a small company.) You would have to pay the monthly Medicare Part B premium, and the Medicare Part B benefits may be of limited value to you as long as the group health plan is the primary payer of your medical bills. In addition, you would start your 6-month Medigap open enrollment period during a time when it will not be of most use to you. For more information on your Medigap open enrollment period, see the publication[/FONT] [FONT=Verdana, Helvetica]Choosing a Medigap Policy: A Guide to Health Insurance for People with Medicare.[/FONT]
[FONT=Verdana, Helvetica]Note: If you are age 65 or older and working for a small company (less than 20 employees), you should talk to your employee health benefits administrator before making any decision not to take Medicare Part B. If your employer has less than 20 employees, Medicare is the primary payer and your group health insurance would be the secondary payer. You may also wish to read our publication:[/FONT] [FONT=Verdana, Helvetica]Medicare and Other Health Benefits: Your Guide to Who Pays First[/FONT] [FONT=Verdana, Helvetica]If you are disabled and working (or you have coverage from a working family member), the Special Enrollment Period rules also apply. Call the Social Security Administration at 1-800-772-1213 or visit their[/FONT] [FONT=Verdana, Helvetica]web site[/FONT] [FONT=Verdana, Helvetica]for more information. See also our FAQ on[/FONT] how to enroll in Medicare[FONT=Verdana, Helvetica].[/FONT]

 

[GregLee]

Do I have to sign up for Medicare if I am still working? I thought I read where you be accessed more money if you do not sign up 90 days before you turn 65. Oldtrig

If you are covered by a group policy at work, I believe you do not have to sign up for Medicare until you retire. I didn't sign up until just after my 68th birthday, since I had not yet retired then and I was still covered by a group policy at work. I paid no penalty.

 

[REWahoo]

If you are covered by a group policy at work, I believe you do not have to sign up for Medicare until you retire. I didn't sign up until just after my 68th birthday, since I had not yet retired then and I was still covered by a group policy at work. I paid no penalty.

That's not what the folks at medicare say. See MichaelB's post above.

 

[GregLee]

That's not what the folks at medicare say. See MichaelB's post above.

It's not? From MichaelB's post:

[FONT=Verdana, Helvetica]However, you may want to wait to sign up for Medicare Part B if you or your spouse are working and have group health coverage through you or your spouse's employer or union. (See note below if you work for a small company.)[/FONT]

 

[REWahoo]

It's not? From MichaelB's post:

Yes, from MichaelB's post:

[FONT=Verdana, Helvetica]Even if you keep working after you turn 65, you should sign up for Medicare Part A[/FONT]

Or did you decide to read only half of what he posted?

Oh wait, I'm getting in way over my head with a Hahvahd man - "have to" vs. "should"...

Never mind...

 

[MichaelB]

All right, break it up, youse guys...

I'm no expert on insurance (or anything else) but most health insurance policies I've read designate Medicare A as the primary just based on eligibility so even if you have a work based policy you may find yourself denied coverage if you haven't enrolled. Ouch.

How Medicare B + supplemental vs work group coverage depends on the specifics of that policy, which we do not know. If it were me I would assume I wasn't covered at work at all (upon reaching Medicare eligibility age) and I would choose the medicare supplemental most appropriate for us unless I had confirmation of continued coverage at work. Health care cost is such an issue at work I can't see many employers providing coverage once Medicare kicks in, but I can see them paying for Medicare instead of group.

 

[GregLee]

All right, break it up, youse guys...

I have no idea about the rules in general, but the issue about Medicare part A coverage after 65 did come up for me when I was still working, and my group insurer here in Hawaii, HMSA, gave me some static after I turned 65 when I had not signed up for part A. But when I called them about it, I was told that I did not have to sign up for part A just because I was eligible, though my insurer HMSA did need to know, one way or the other, whether I had signed up for part A. I told them I had not, and that seemed to make it okay. I didn't sign up for part A or B until I was 68 when I retired. No penalty. Since part A is free once you're eligible, I don't know that there is any point to delay, though.