Case Study: To move or not to move
Should I stay with my group or retiree coverage? Should I move to Medicare? The retiree/group plan says if I leave the plan, I can never come back, What am I missing out on?
I am receiving advertisements that say I must sign up for Medicare and a plan, is that true?
I always suggest a comparison, side by side, of the group/retiree coverage and your options on Medicare. Healthcare networks may play a role in your decision, but many times, the finances of either plan can be the deciding factor. I do not make a recommendation unless it makes financial and healthcare sense to the client.
In my most recent scenario, Mr. A has access to a Federal Retiree Plan. This plan costs him approximately $150/month in addition to his Part B cost. Moving to Medicare and a MediGap Plan would be similar cost, and moving to an Advantage plan would actually save him $150/month.
The key to Mr. A's decision is based around his drug costs. Mr. A takes two very expensive drugs that are covered very well by his Federal Retiree Plan. Moving Mr. A to any Medicare plan would increase his annual drug cost by $2,700/year. Due to this drug cost factor, my recommendation is a definitive, “Stay on your current plan!"
Mr. A came to me this year with a flier that almost scared him into moving to a Medicare drug plan which would have changed his financial outlook for the year,
Be careful with the ads that you are receiving, and we're here to provide sound advice, with full transparency in your options.