Should I take medicare?
Hi, I got my medicare card today, I know they pay 80%, or should I keep my private insurance? (which I might add has a deductible of 3,000)
- ZarnevLv 71 decade agoFavorite Answer
Medicare gets very confusing and if not done correctly you can face penalties and problems in the future. Since I don't know your situation I'll give you the basics.
You cannot decline Part A (hospital coverage) but you can decline Part B (doctor and outpatient coverage) in some cases. Part A generally doesn't have a premium. Part B has a $96.40 premium for most people. Part A has a $1068 per occurance deductible and Part B has a $135 annual deductible plus 20%.
If you are currently working and have a group policy with more than 20 people in the group you can keep your current policy and decline Part B. If there are fewer than 20 you can keep your current policy but cannot decline Part B. This is because with a smaller group Medicare is primary and with a larger group Medicare is secondary. If you are not working you cannot decline Part B no matter the size of the group but you can still keep your current policy. If you decline Part B when you are first eligible without following the above guidelines you will face a monetary penalty and time restrictions when and if you get Part B in the future.
If you have an individual policy most will not allow you to stay on the policy once you turn 65. The plans that do have a hefty premium after you turn 65.
You can get additional coverage in addition to Medicare. You have an option of getting a Medicare Supplement or a Medicare Advantage plan. If you get a Supplement you will need a separate Part D (drug coverage) policy or face penalties. The Advantage plans (Part C) often have drug coverage included. There are advantages and disadvantages to both types. The Supplement will have a premium which will average around $150 per month plus the Part D premium. The Advantage plan will have a low and even possibly a $0 premium depending on your location. You'll need to do the math and compare the plans available with your current plan.
Visit a local agent that works in the senior market and with all of the major companies in your area. The agent can guide you and explain the plans available. There is no extra charge using an agent.Source(s): Independent Agent Certified Senior Advisor(TM)