Medicare, Medicaid, Life and Health Insurance/health insurance plan vs medicare
QUESTION: I'm 63 and used to pay a lot for individual health insurance, almost $400 mo in premiums with a very high deductible. But with the Affordable Care Act(ACA) and based on my income, I pay only $57 a month for a health plan that also has a low deductible. It's really helped me out. But assuming people are required(?) to be on Medicare at age 65, the cost for the supplements will be much more than the individual health plan I now have through the ACA, something like $250-$300 vs the $57. Am I understanding this correctly, that when I'm 65 I'll have to actually pay a lot more for Medicare than what I'm paying now for my health insurance?? Thanks
ANSWER: Hello Lee. A very good question. It's encouraging that you are looking ahead. Of course, none of us know for sure what the next couple of years will bring. I'm happy the ACA is working so well for you now. At 65, you will pay for Part B of Medicare which is currently $104.90. This is usually deducted right from your Social Security deposit. You will then have a choice between a Medicare Supplement or a Medicare Advantage. There a number of plans in these two categories that would come close to what you're paying now and the coverage might be similar or better. If you were to get coverage totaling what you said in the question, then you wouldn't have to worry about any deductibles and/or copays and best of all - no networks like an HMO or PPO. I hope this helps.
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QUESTION: You said the cost for Part B is 'usually deducted from your social security deposit.' I currently get a modest pension from when I worked in local government and will get very little social security from the little I paid into social security from non-govt. jobs. Can you tell me what social security deposit you are referring to? And is Part B different than choosing a supplement?
And one last question, I know there is AARP and insurance companies wanting people to buy their Medicare supplements, what would be the first step or easiest way to start the process? Lots of questions I know, thanks.
Lee, it's the retirement Social Security. If there isn't enough, then they will bill you quarterly for Part B. Both Part A and Part B of Medicare have 'gaps', ie - deductibles and coinsurance. This is what a supplement fills, these gaps. A few months before you turn 65, contact an agent that deals with Medicare insurance products (like me, I'm licensed in CO) and we would be happy to go over all your options. That is what we're trained to do - to find something that fits your health needs and budget.