Medicare Supplemental Insurance

Posts Tagged ‘Hidden cost of Medicare Advantage’

I have to start by saying the reason for this post has made me said, not because we were able to review an move a new client to a better program, but because she was paying over $6000 a year for just her prescriptions.

For every person there is a program that fits their needs, however when you are not placed into the proper program, you spend much more than you need to.  In an earlier post I noted that depending on the Part D prescription program that you were enrolled in, the difference in cost from the lowest cost to the highest cost averaged $3000 for the year.

Now to get to the point of my post.  A new client walked into my office this past week with her current plan details and a list of her prescriptions.  She was currently on a Medicare Advantage HMO plan which included prescription coverage.  Over the course of 2009 she spend $5980 some dollars on just her prescriptions, not to mention her co-pays and deductibles she was responsible for through her medical side of the plan.

When it was all said and done, to make a long story short, we moved her to an individual Part D prescription plan and saved her $900 dollars this coming year just on her prescription program.  (The $900 savings for the year already factors in the monthly cost of the Part D prescription program and all out of pocket cost including copays)

That $900 savings for the year broke down to $75 savings per month.

Her Medicare Supplement Plan J was going to run her $147 per month.  So $147 – the $75 savings means the net cost of her Medicare Supplement is now $72 per month

Her prior Medicare Advantage plan was charging her $20 per month just to be on the plan, plus the co pays and deductibles.

So now you take the $72 additional dollars she is spending and subtract the $20 that she was going to pay for her Medicare Advantage plan and she  is only spending $52 more per month.

THATS NOT ALL!  I must also point out that her Medicare Supplement Plan J does not have any of the hidden expenses such as co-pays or deductibles like her Medicare Advantage had.  So when we factor in the co-pays that she spent with her Medicare Advantage, she saved WAY more by moving to the individual Medicare Supplement and Part D prescription program.

The point I am trying to make here along with everyone of my post is: Just because an agent says they can get you a Medicare plan, does not mean they have access to the proper products for your needs.  Make sure you get with someone who will educate you on all your options so you can make a good decision.

Best Luck,

Travis