As you approach the age of 65, you will have an important decision to make about your health insurance. You can either continue with your employer-sponsored health insurance plan, or you can opt to take a Medicare plan. This decision requires careful consideration, as it can have a significant impact on your healthcare costs and coverage.

Do not assume because you have what most people pre-Medicare would consider good health coverage that it’s better than your Medicare options which are subsidized your employment  while working. We hear it all the time. Many medicare eligible beneficiaries are shocked by the coverage options for individuals who now qualify for Medicare.  It’s important to understand the differences between work health insurance and Medicare plans. Work health insurance is typically provided by your employer and may have different levels of coverage and costs depending on the plan you choose. Medicare, on the other hand, is a federal health insurance program for people 65 and older or for those with certain disabilities or conditions. Medicare has four parts: Part A (hospital insurance), Part B (medical insurance), Part C (Medicare Advantage), and Part D (prescription drug coverage).

Here are some factors to consider when comparing your work health insurance with opting to take a Medicare plan when you turn 65:

• Cost:
  • The cost of health insurance can vary widely depending on the plan you choose. Work health insurance plans may require you to pay monthly premiums, deductibles, copays, and coinsurance. Medicare also requires premiums, deductibles, copays, and coinsurance, but the costs can vary depending on the plan you choose. It’s important to compare the costs of your current work health insurance plan with the costs of Medicare to determine which option is more affordable.
• Coverage:
  • Work health insurance plans may provide different levels of coverage depending on the plan you choose. Medicare plans also have different levels of coverage, but they are standardized across the country. For example, all Medicare Part A plans provide the same basic coverage for hospital stays. However, some Medicare plans may offer additional benefits, such as dental, vision, or hearing coverage, that may not be covered by your work health insurance plan.
• Provider network:
  • Your work health insurance plan may have a specific network of providers that you can see. If you choose to take a Medicare plan, you will have access to a wider network of providers. However, some Medicare plans may have restrictions on which providers you can see, so it’s important to check the provider network before making a decision.
• Flexibility:
  • Work health insurance plans may have restrictions on when and where you can receive care. Medicare plans offer more flexibility in terms of where and when you can receive care. For example, if you travel frequently, a Medicare plan may be a better option for you as it provides coverage across the country.
• Prescription drug coverage:
  • If you take prescription drugs, it’s important to compare the prescription drug coverage provided by your work health insurance plan with the coverage provided by Medicare Part D plans. Medicare Part D plans can vary widely in terms of coverage and costs, so it’s important to compare plans to determine which one provides the most affordable coverage for your prescription drugs.

In conclusion, comparing your work health insurance with opting to take a Medicare plan when you turn 65 is an important decision that requires careful consideration. It’s important to compare the costs, coverage, provider network, flexibility, and prescription drug coverage of both options to determine which one is the best fit for your healthcare needs and budget. Be sure to consult with your healthcare provider and insurance advisor to help you make an informed decision that’s best for your situation.

 

Ernest Mitchell
Principal
Dear Retirement, Inc.
[email protected] | (864) 523-2693