At Work

Does Medicare make sense for seniors with employer health coverage? 

It used to be a no-brainer that if you were still working with health benefits and turned age 65, you delayed signing up for Medicare because employer coverage was a better deal and you didn’t have to pay the Part B and D premiums. As this article points out it may be time to rethink that. 

The rise of high-deductible plans should trigger a serious study by people about the merits of Medicare – either in addition to employer plans or in place of them. The rise of high-deductible plans should trigger a serious study by people about the merits of Medicare – either in addition to employer plans or in place of them. 

The current monthly premium for Part B of Medicare is $134 a month. Part B covers expenses for doctors, care at non-hospital facilities, and durable medical equipment. This works out to a bit more than $1,600 a year. There also is a $183 annual deductible that people must pay for Part B expenses before their insurance coverage begins. 

Here’s a summary of Part A and Part B costs. For people keeping their high-deductible employer plans, laying out $2,000 for Part B premiums and deductibles could well be money well spent. This is because Medicare can be a secondary insurer and can pay a big hunk of covered plan expenses before the plan’s annual deductible is reached.

Source: Does Medicare make sense for seniors with employer health coverage? | PBS NewsHour

Advertisements

1 reply »

  1. Careful, if your plan otherwise qualifies you to contribute to a Health Savings Account, enrolling in Medicare makes you ineligible to contribute to the H S A.

    Like

What's your opinion on this post? Readers would like your point of view.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s