The real cost of  your health coverage is the total of the premiums you pay in addition to any deductibles, copayments, or coinsurance, less any available tax savings.   These costs depend on which option you select and if you’re subject to Income Related Monthly Adjustment Amounts, or IRMAA, explained in this publication:  

Premiums for higher income beneficiaries 2019,

You may pay less if you’ll qualify for “extra help” from the government.  There are different levels of help, so you may want to consult the website BenefitsCheckUp.org, operated by the National Council on Aging to see if you may qualify.

If you’ve been notified that you need to pay additional IRMAA Premiums and would like to appeal the Government’s action (you’ll be making less money this year because you reduced your work schedule, retired, or got a divorce, for example), you can file form ssa-44 for 2019.

Some of our clients (or their spouses) are still working and able to be covered under an employer group plan.  This presents another option which may provide an employer contribution toward the premium, and a pre-tax method to pay your portion of the monthly premium if you’re staying on the group plan.  Employers are not allowed to force you off of the group plan if you’re still working and eligible for coverage, though you may find that Medicare and a Supplement and Part D plan will give you better coverage with a lower cost, and perhaps access to more providers.

We have developed some “worksheets” to help with your evaluation of the “best” option for your situation.  Medicare rules of which coverage is considered primary vs secondary pivot on the number of employees in your group.  If you or your spouse are covered under a group plan where 20 or more employees exist, Medicare will be the Primary Coverage, so you may not wish to pay to have Part B of Medicare while the group insurance is in place.   Here’s a worksheet to get you started: 

Worksheet:  Medicare vs Group Insurance Costs Groups under 20 

If the group has fewer than 20 employees, then you’ll need to purchase Part B coverage for the group insurance to work properly.   Here’s the worksheet:

Worksheet: Medicare vs Group Insurance Costs Groups of 20 or more employees

Finally, if you don’t have a group insurance option, you’ll just be comparing the cost of a Medicare Supplement and Part D, vs the Medicare Advantage plans and considering the copayments and other out of pocket expenses.  We can look at the particulars together when we meet!

Call us at 831-335-8200!