Medicare Costs?

[mountainsoft]

I'm still five years from Medicare, but was watching some videos yesterday and was surprised by the related costs. $170 for part B, $200 for medigap G, $20 for drug coverage. That's almost $400 month, a lot more than I was expecting for Medicare.

I did some quick browsing on the medicare.gov site to see what plans were available. I guess I was expecting something like the ACA web site where I could compare plans and apply online. This seemed more like an advertised listing of insurance companies I would have to contact individually for quotes and to apply. At least two of the recommended insurers said they didn't offer plans in my area when I clicked through to their web site? I was also surprised that many of the insurers were places like State Farm or life insurance companies, and not health related companies.

Also, if I understand correctly all insurers are required to provide the same coverages, so why would I choose a more expensive plan over a cheaper one?

 

[aja8888]

I'm still five years from Medicare, but was watching some videos yesterday and was surprised by the related costs. $170 for part B, $200 for medigap G, $20 for drug coverage. That's almost $400 month, a lot more than I was expecting for Medicare.

I did some quick browsing on the medicare.gov site to see what plans were available. I guess I was expecting something like the ACA web site where I could compare plans and apply online. This seemed more like an advertised listing of insurance companies I would have to contact individually for quotes and to apply. At least two of the recommended insurers said they didn't offer plans in my area when I clicked through to their web site? I was also surprised that many of the insurers were places like State Farm or life insurance companies, and not health related companies.

Also, if I understand correctly all insurers are required to provide the same coverages, so why would I choose a more expensive plan over a cheaper one?

I've posted this before, but for DW (when she was alive) and I we paid about $8 K combined for Medicare, Plan F, and Part D drug plans. She was on a dozen meds and two were outrageous in cost. Her drugs cost us about $4 K OOP at that time. So our annual cost was ~$12 K.

Nevertheless, Medicare, a good Medigap policy, and a good drug plan is worth every penny of it.

 

[aaronc879]

Medicare is $164.90, the other stuff mentioned are optional add-ons in addition to Medicare. You pay $400 because you choose to have extra coverage. Most people I know don't have the extra coverage because it is too expensive. That means they delay medical care and suffer the result. Sad that that is our system.

 

[ncbill]

I plan on going for Plan G-HD when my time comes.

 

[aja8888]

Medicare is $164.90, the other stuff mentioned are optional add-ons in addition to Medicare. You pay $400 because you choose to have extra coverage. Most people I know don't have the extra coverage because it is too expensive. That means they delay medical care and suffer the result. Sad that that is our system.

Yes, the medigap policies allow one to choose your physician/surgeon, etc;

I got to pick the guy who replaced both my hips (world class surgeon)
I got to pick the cardiologist who fixed my SVT.
DW got to pick the surgeon who replaced her heart valve.
My BIL got to pick the team that did his heart transplant.

Medicare Advantage policies (HMO's basically) limit your choices or don't give you any.

I have to agree, the system sucks for the vast majority of people.

 

[aja8888]

I plan on going for Plan G-HD when my time comes.

Yes, Plan F is no longer offered. I have G also.

 

[GenXguy]

Medicare is $164.90, the other stuff mentioned are optional add-ons in addition to Medicare. You pay $400 because you choose to have extra coverage. Most people I know don't have the extra coverage because it is too expensive. That means they delay medical care and suffer the result. Sad that that is our system.

No. Medicare part A alone is $506 PER MONTH if you worked less than 30 quarters. Then Part B, Part D, and medigap/supplemental on top of that, which most people would say are really necessary, so you could be looking at $1000/mo or so, and even more when adding in the out of pocket costs, if you don't quality for Premium free part A.

If you worked 40 quarters or more, Medicare Part A is premium free. But the other necessary parts drive up the actual cost.

Yes, the system sucks. Seniors shouldn't have to pay so much for health care while so many people under 65 can get a free ride on the Medicaid expansion.

 

[youbet]

Yes, Plan F is no longer offered. I have G also.

Actually if you were enrolled in Medicare before 2020, you can have Plan F. And, regardless, Plan G is almost identical to Plan F.

 

[W2R]

To me, top notch medical care is my highest priority. I am pretty much alone in the world (except for Frank) so I am the only one who will ever contribute money to my medical care.

So, I worked several years past FI in order to qualify for federal retiree health benefits. I have the exact same "Cadillac" level benefits that politicians can get, that inspire the ire of the masses. That's what I want, and that's what I have even though I had to take a lower paying (govt) job for years to get these health benefits.

I pay :

$164.90 for Medicare, Part B,
$308.53 for FEHB (Federal Employee Health Benefits) BCBS standard, and
a small percentage of drug costs.

Medicare Part A is free. Many will choose a less expensive FEHB plan but I like mine because I never have had to pay one red cent (except for the drug percentage), even for hospitalization and surgery. So to the naysayers I say go suck an egg and then jump in a lake while whistling Dixie, I like what I have and you're not me.

 

[youbet]

I'm still five years from Medicare, but was watching some videos yesterday and was surprised by the related costs. $170 for part B, $200 for medigap G, $20 for drug coverage. That's almost $400 month, a lot more than I was expecting for Medicare.

My Medicare + F supplement + Part D costs me about $450/month (excluding IRMAA). It’s a bargain. I’ve yet to encounter a doc or facility that didn’t accept my coverage and I never get a bill. No deductibles or co-pays. I’ve been on Medicare for 11 years and, so far, the only thing I’ve found to bitch about is IRMAA (which I try to keep to myself! ).

 

[jim584672]

The Medigaps can differ in how the state regulates them. For example in NY you can buy one at any time, and the prices are not age rated. So when you are "young" near 65 and healthy get a High Deductible G $2,700 max OOP and as you get older and sicker move up to a Regular G $226 max OOP.

Medicare Saving Program QMB in NY has the same eligibility as MAGI Medicaid (138%) assets not considered. QMB pays for all Medicare out of pockets, including Part B. The QI (186%) program pays for Part B premiums.

Due to the IRA law, beginning in 2025, Part D out-of-pocket drug costs will be capped at $2,000. This amount will be indexed to rise each year after 2025 at the rate of growth in per capita Part D costs.

 

[RetMD21]

...Also, if I understand correctly all insurers are required to provide the same coverages, so why would I choose a more expensive plan over a cheaper one?

For part B Medigap there is a system with insurers offering similar coverage. You can pick your level. (Valid in 47 states)

https://www.medicare.gov/health-drug-plans/medigap/basics/compare-plan-benefits

The nice thing is that the network is all physicians and hospitals who take medicare (except "select" supplement plans)

A lot of people do fine with Medicare "advantage" plans. The limitations in choice aren't a problem for many folks.

 

[GenXguy]

A lot of people do fine with Medicare "advantage" plans. The limitations in choice aren't a problem for many folks.

Right those dis-Advantage plans aren't a problem if you don't actually need to use them to cover health care costs.

 

[RetMD21]

Right those dis-Advantage plans aren't a problem if you don't actually need to use them to cover health care costs.

I'm not a big fan but it you can get what you need in the network it can work out.

 

[mf15]

Right now paying for F HD 65/month. But you have to pay the mess of hosp bills yourself,until hit deductible. Get 7% discount since both of us have a plan,at Cigna.
oldmike

 

[badatmath]

Well it will be slightly cheaper than I pay now on retiree insurance and will cover more so it seems like a bargain to me!

 

[Gotadimple]

Right those dis-Advantage plans aren't a problem if you don't actually need to use them to cover health care costs.

Actually the Medicare Advantage plans is a "Pay me now or Pay me later" tradeoff in my view. As quoted most are HMOs and the quality of HMOs varies by the insurer. They are able to limit some unlimited benefits (ie, Physical Therapy) because they are on the hook for all expenses incurred by the member (after any deductibles and co-pays). So there are deductibles (Part A & Part B), copays and limitations.

You don't have that with Medigap Supplement plans.

Using the example above one person has a $400 per month premium (Part B + Medigap + Part D) and generally no other out of pocket costs. $4800.

Another person on Medicare Advantage can have a monthly premium of under $200 per month (Part B that includes Part D plus $0 to $$ monthly premium for Medicare Advantage). My expenses in 2022 were $2255 without vision or dental coverages that are very limited).

A healthy retiree can save some money by going with MA knowing they will likely NOT be able to switch to Medigap due to health underwriting. What they pay now (premiums + out of pocket) can be lower than what they pay for premiums for Medigap.

It's a financial decision - if you don't like out of pocket, go Medigap and pay extra for lower costs now and lower costs later. If you can deal with out of pocket short-term knowing it will increase long-term, go Medicare Advantage.

 

[RetiredAndLovingIt]

IIRC you're already on Kaiser and if you are happy with them, they offer Medicare Advantage plans which are pretty much what we already have plus more at no or very little extra cost. In my area both standard plans are free after I pay my Medicare premium and I can pay $15 to upgrade to Advantage Plus which increases dental vision and hearing benefit amounts.
If you look at their website they have tons of information and the 2023 Benefits At A Glance chart
Of course if you're not happy with Kaiser, then disregard this post.

 

[Katsmeow]

I'm still five years from Medicare, but was watching some videos yesterday and was surprised by the related costs. $170 for part B, $200 for medigap G, $20 for drug coverage. That's almost $400 month, a lot more than I was expecting for Medicare.

....
Also, if I understand correctly all insurers are required to provide the same coverages, so why would I choose a more expensive plan over a cheaper one?

I pay so much less now than I paid for insurance before I turned 65. And, I had a deductible and co-pays. Now, for Medicare itself I have just the one small deductible (266?). There is a deductible and co pays for Part D. Bottom line is I am now paying far less than I was paying then. I can go to any doctor without referral. Works for me.

For Medicare Supplement plans it is true that, for example, all Part G plans will cover the same thing. There are 2 main reasons to choose a more expensive plan. (I am assuming you are doing traditional Medicare and not Medicare Advantage)

1. Because of how AARP United Healthcare does their pricing they can be a little more expensive in the earlier years but much less expensive in the later years. I like how AARP does its pricing and over time believe it to be less expensive.

2. What kinds of price increases do some carriers have? Just because someone is less expensive now does not mean it will be less expensive later. Some insurers are notorious for sucking people in with a low rate, then closing their books a few years later. Everyone who can pass underwriting leaves but it leaves stranded the people who can't pass underwriting. A few states will lets you change supplement carriers without underwriting, but most do not. There have been a lot of discussions on that here.

 

[aja8888]

Actually if you were enrolled in Medicare before 2020, you can have Plan F. And, regardless, Plan G is almost identical to Plan F.

I switched to Plan G when F got too expensive a few years ago. I was in F from 2009 when I signed up. Plan G has a slower rate of increase from what I understand with a small deductible ($226? annually).

 

[f35phixer]

To me, top notch medical care is my highest priority. I am pretty much alone in the world (except for Frank) so I am the only one who will ever contribute money to my medical care.

So, I worked several years past FI in order to qualify for federal retiree health benefits. I have the exact same "Cadillac" level benefits that politicians can get, that inspire the ire of the masses. That's what I want, and that's what I have even though I had to take a lower paying (govt) job for years to get these health benefits.

I pay :

$164.90 for Medicare, Part B,
$308.53 for FEHB (Federal Employee Health Benefits) BCBS standard, and
a small percentage of drug costs.

Medicare Part A is free. Many will choose a less expensive FEHB plan but I like mine because I never have had to pay one red cent (except for the drug percentage), even for hospitalization and surgery. So to the naysayers I say go suck an egg and then jump in a lake while whistling Dixie, I like what I have and you're not me.

W2R,

I'm also FEHB user, I turn 65 November.... So I've been playing the game using Consumer CheckBook website. I have BCBS standard too. Was playing with taking BCBS Basic for ~180... But for another 120 I think i'll stick with Standard. I'm healthy and except for Mom who had many aneurysm', OBTW, I got my SMALL brain scanned for any possible issues, NONE, Dads 90 and still golfs, breaking his age !!!

Did you use Consumer Checkbook website for comparisons?

Think I'll stick with Standard !!!!!

 

[W2R]

W2R,

I'm also FEHB user, I turn 65 November.... So I've been playing the game using Consumer CheckBook website. I have BCBS standard too. Was playing with taking BCBS Basic for ~180... But for another 120 I think i'll stick with Standard. I'm healthy and except for Mom who had many aneurysm', OBTW, I got my SMALL brain scanned for any possible issues, NONE, Dads 90 and still golfs, breaking his age !!!

Did you use Consumer Checkbook website for comparisons?

Think I'll stick with Standard !!!!!

Never heard of that website! But I've had BCBS Standard for a very long time by now, long enough that I don't expect any bad surprises to pop up. I'll stick with Standard, too!

 

[DektolMan]

Here is what DW and myself pay:
$164.90 for Medicare, Part B,
$55 for G High Deductible

$9 for Aetna Drug plan


$228.90 monthly for each of us.

 

[N02L84ER]

mountainsoft, I will be 65 next year. To see a list of providers and cost, you can go to this link
https://www.medicare.gov/basics/costs/medicare-costs/provider-accept-Medicare
Then scroll to the bottom of the page and click on

'Supplements and other insurance' in the Site Menu column of links

Then click on 'Find a Medigap Policy'
Then enter your zip code, etc.

 

[mountainsoft]

I ran across this video on YouTube which does a good comparison between Medicare plans.

We still have a few years before we have to decide, but right now I'm kind of leaning towards the advantage plans. We've already had Kaiser for the last 35+ years, so we're already familiar with that system. My mom has the PacificSource advantage plan and it works well too with a few additional perks over Kaiser.

Lots to research...