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Since he has this change of retirement plans, I now have to do more research to make sure he still has to sign up with Medicare "at 65". He doesn't want to change insurance since the work insurance is cheaper than the medigap G. If he does have to start it when he turns 65, the AARP G-HD would be the one he'd have to go with for now, until his pension starts.
Do you know how hard it would be to switch from an AARP G-HD plan to the AARP G? I assume he would have to do underwriting?
UHC is not in the HD market and does not offer HD plans. He would need another carrier. Yes, if he enrolls in Part B at 65, the clock on the Medigap GI period begins - which means he has six months to choose a Medgap without underwriting. Thereafter, any switch would require health underwriting - unless you are in a guaranteed issue state. Better to delay Medicare enrollment until he retires, if possible. Most employers don't require enrollment in Medicare to continue on their plan.
Since he has this change of retirement plans, I now have to do more research to make sure he still has to sign up with Medicare "at 65". He doesn't want to change insurance since the work insurance is cheaper than the medigap G. If he does have to start it when he turns 65, the AARP G-HD would be the one he'd have to go with for now, until his pension starts.
If the employer coverage continues past 65 he can keep it. Check with your HR department. There may have already been plan changes for 2022. There are different rules depending on the size of the company.
That said, it may be time to prepare for retirement. Investigate when your Social Security could be & when you will claim it. At that time apply for Social Security with Medicare with a Medigap and a Part D prescription plan. This would be a 4 step process.
When you combine pension with Social Security and your budget then you see if you need any other money to meet your needs.
...or Amerihealth high deductible plan G. I am concerned about paying a lot of little bills as I get older if I choose the high deductible plan. I remember having to help my mother when she became elderly because she could no longer pay her bills on her own.
United American is a popular HD-G carrier. They offer an optional annuity that acts like a savings account but it may not be available in all states. You deposit funds, say $500, and UA automatically pays medical providers the HD-G cost sharing using those funds. Add to the account when it runs low. You designate a beneficiary for unspent funds upon death. You may want to ask Amerihealth if they have such a product.
Can someone explain to me the risk of the HD plan? If the out of pocket max is $2,000 as I have read that's all the expose you have right? 2 grand a year. And the savings in premiums cover most or all of that What am I missing? Why would you ever go to the low deductible plan?
Can someone explain to me the risk of the HD plan? If the out of pocket max is $2,000 as I have read that's all the expose you have right? 2 grand a year. And the savings in premiums cover most or all of that What am I missing? Why would you ever go to the low deductible plan?
I have had the high deductible F plan ever since I retired 8 years ago. This year the deductible is $2490. My monthly premium is now $45. I have hit the deductible amount twice; for a hip replacement and a knee replacement. Other than those two times, my medical expenses are low, so far.
So I look at it as being catastrophic coverage. If something bad happens, I'll just eat the $2490 and anything beyond that is covered. Until that happens, Medicare pays 80% (after the regular deductibles) so it takes quite a bit in medical bills to hit the $2490 supplement deductible.
I look at it as the only risk is that I pay $45 per month and don't have large medical bills so the supplement doesn't pay anything. Sort of like paying for homeowner's insurance and being happy that you have no claims.
Can someone explain to me the risk of the HD plan? If the out of pocket max is $2,000 as I have read that's all the expose you have right? 2 grand a year. And the savings in premiums cover most or all of that What am I missing? Why would you ever go to the low deductible plan?
You are not missing anything.
For 2022, there is a Part B deductible of $233 that would have to be paid with either Plan G or Plan G-HD, which means your actual additional exposure (over Plan G) with Plan G-HD is the $2,490 Plan deductible less the $233 Part B deductible, or $2,257.
So, your maximum out-of-pocket for Medicare-approved services is $2,490 (or $2,257 more than under Plan G).
Reasons why one might not go with Plan G-HD are:
1) You are in poor health and believe that you will regularly hit the Plan G-HD $2,490 annual deductible, therefore Plan G makes more sense in your situation.
2) Some people are concerned that as they get older it will be more difficult to track the bills, the deductible, and what is actually owed. However, the whole process is seamless: the provider bills Medicare, Medicare pays the provider and then sends the bill to the Medigap insurer, the Medigap insurer processes the claim, then you receive a bill from the provider for whatever you actually owe, if anything.
3) Some people are concerned that even though they might be saving $1,400 a year or more in premiums by having Plan G-HD (or even $2,500 a year when they get older), that they might have to come up with the $2,490 deductible in a particular year (or come up with the $2,490 deductible two years in a row).
The biggest problem with Plan G-HD is the “high deductible” in its name. People don’t understand that Medicare pays its 80% for Part B and you are only responsible for the 20% that Medicare does not cover, up to a maximum out-of-pocket of $2,490.
Because of its name, people mistakingly assume that with the high-deductible plan, you have no coverage until you pay $2,490 a year., like a regular health insurance plan.
They should call it “Plan G High Value” or something.
When I purchased Plan G in 2016, my agent told me that Plan F was being phased out. Is it still available? I'm in the low deductible plan (G) because I have chronic issues and I also want things covered if there's a catastrophe like an accident. My deductible is $168/yr. with no monthly co-pay or other out of pocket cost. I chose this because I am single on a fixed income.
Well that settles it for me, high deductible as I had planned. No Advantage plan either.
Now next question which is probably more of a general insurance question. You read people with long term cancer or say ALS having huge medical bills. I read Tuesday With Morrie and learned the author is donating the earnings to pay for his medical bills. Why is this so if your maximum out of pocket is defined in the policy? How are people not covered for these bills?
When I purchased Plan G in 2016, my agent told me that Plan F was being phased out. Is it still available? I'm in the low deductible plan (G) because I have chronic issues and I also want things covered if there's a catastrophe like an accident. My deductible is $168/yr. with no monthly co-pay or other out of pocket cost. I chose this because I am single on a fixed income.
Since you were eligible for Plan F before 2020, you would still be eligible for that plan.
However, unless you live in one of the few states with special rules, in order to change from Plan G to Plan F you would be subject to medical underwriting.
A couple of other points:
First, the difference between Plan F and Plan G is just the $233 Part B annual deductible. In many cases, the Plan G annual premium might be more than $233 lower than Plan F, therefore it would be more cost effective to have Plan G.
Also, many people are concerned that Plan F will see higher premium increases going forward compared to Plan G, since Plan F is now closed to newly eligible Medicare participants and will have an aging population over time with increasing costs, resulting in higher premium increases for Plan F compared to Plan G.
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