Adam, I’m 70 and eligible for Medicare. Thus far I’ve maintained my employer insurance to keep my younger spouse, who is not eligible for Medicare, insured. We are currently paying around $1,000/month for insurance for the two of us. If I were to drop that group policy and get a Medicare Supplement for myself and get them an individual health insurance policy what would our costs be?
This is actually a very common circumstance that we come across. That $1,000/month figure is only your upfront costs. With your group health insurance, you also have a deductible, co-insurance, co-payments, and a strict network. For you, a Plan F Medicare Supplement will run $215/month. This Plan F will cover you 100% for any Medicare-approved expense. This means that you will have no costs for deductibles, co-payments, or co-insurance. You will also have access to the full Medicare network of Doctors which means you go can to practically any doctor in the US.
Your spouse can set up a Defined Benefit plan (with the exact level of coverage that I have for myself and family) through Philadelphia American (PALIC) for $440/month. This will get them first dollar coverage with no deductibles, co-payments, or co-insurance. If they have any pre-existing conditions they will not be covered for the first 12 months.
So, a $215/month Plan F supplement and $440 Defined Benefit plan brings your total monthly cost to $655/month. That’s $345 per month that you will be saving when compared to your current group health insurance. And that is just your upfront savings. You also don’t have to worry about strict networks, deductibles, co-payments, or co-insurance.
