politics of Medicare

[Anonymous]

I was talking to my MIL today. She works very hard and is paid well but just recently became eligible for Medicare. She lives in Virginia and her insurance carrier decided to stop doing business in Virginia because of a judicial ruling which said employers had to insure all employees (this is very broad but about as much as she could get from the insurance carrier). She decided to try Medicare because every other insurance carrier she spoke with said that this would be the best deal for her. She has been surprised to find it costs much more than her old insurance. Under the old insurance, she paid $315 per month, had a $500 annual deductible and had decent prescription drug coverage. She did not have eye or dental coverage. She now has to pay $313 per month for Medicare which has no prescription drug coverage. She had to obtain a supplemental policy at a cost of $128 per month for things the basic Medicare does not cover. If she wants any type of prescription drug coverage, it costs an additional $111 per month. The monthly cost of the two prescriptions she takes is $67, so she was not planning on obtaining prescription drug coverage. However, she was told by Medicare if she did not obtain it now, it will become more difficult to obtain as she grows older and may need more drugs. My MIL said that the Medicare rep told her that she is subsidizing everyone who stopped working and she would be smart to stop working too. She would rather work and is will ing to subsidize others. I admire this attitude, but I really think it stinks that she has to pay more for less coverage. I thought Medicare was a big benefit for people over 65.

[Anonymous]

It's a huge benefit to people over 65. I just ran some quotes for a 64 year old person (hard to get info for someone over 65 online without Medicare). If she had to get an individual policy off the street, it could be $1,500 a month for full coverage. $670 a month for a $1,500 deductible. And that's if you are healthy. Add any long-term conditions like high blood pressure or diabetes and it goes through the roof.

[Anonymous]

OP you cannot fairly compare a former group insurance rate with individual insurance coverage. The group spreads its costs across everyone, including younger, presumably healthier members. Medicare only covers the elderly. The pp is right, if you compare open market individual coverage to Medicare it is a huge break.

[Anonymous]

First, I am very surprised that her employer is not getting a new health plan. It almost sounds like the employer is trying to cut costs and blame the change on the insurer, because corporate health plans aren't going away in this state.

I did a search for this area for medicare drug plans, and they seem to cost in the 20's and 30's per month.

I don't know what supplemental insurance she needed, so I can't say there.

But I would look again at the prices by calling someone else to be sure the numbers are good.

But the other posters are right that under your mother's old health plan she was in a group probably of 20-30-40-50 somethings. When she switches to medicare, she'll be in a risk pool with 60-70-80-90 somethings.

[Anonymous]

OP here. I am an accountant and do my MIL's taxes for her. This came up because her quarterly tax payments are due on Jan 18 (extended because of the holiday). She is self-employed and had her own individual plan with Unicare. I know what she paid because I have the payment receipts. She is in the process now of looking at new individual plans rather than Medicare. She has her supplemental policy with State Farm (highly rated) and if she gets prescription coverage it will be with Humana (also highly rated). When she gets quotes for individual coverage, she will compare it to the Medicare costs.

[Anonymous]

If she gets better rates for an individual policy I would very very carefully examine what is covered and what any limits are (types of procedures and illnesses and annual caps ....not just major things like dental or drug coverage)

[Anonymous]

Rationing here we come. Quality care is very expensive. Medical advancements are astronomical. Everybody thinks thet deserve the best. Nobody makes enough money to support people who live to be 95 years old with 30 years of expensive medical bills. The money is gone.

[Anonymous]

Anonymous wrote:OP here. I am an accountant and do my MIL's taxes for her. This came up because her quarterly tax payments are due on Jan 18 (extended because of the holiday). She is self-employed and had her own individual plan with Unicare. I know what she paid because I have the payment receipts. She is in the process now of looking at new individual plans rather than Medicare. She has her supplemental policy with State Farm (highly rated) and if she gets prescription coverage it will be with Humana (also highly rated). When she gets quotes for individual coverage, she will compare it to the Medicare costs.

I see, the issue is that she has an individual plan. Is there any professional association for her that might have a health plan option?