Cost Benefit Analysis of Medicare Supplemental Insurance

[tlr1492]

I have been trying to analyze whether or not Medicare Supplemental Insurance makes economic sense for me and my wife. We are both 70 years of age and have substantial liquid assets. Current premium rates suggested by AARP is $3000/year each for Plan F coverage. It is difficult to determine what the total liabilities are that this $6000/year protects?

 

[MBSC]

There is no cap to your potential liabilities if you go without Medigap and Part D coverage. A Medigap F-HD plan for a 70 year old should be about $60-90 per month each with a Maximum Out Of Pocket (MOOP) of $2180 annually. Part D plans run $20-35 monthly plus copays. This is all someone in your situation requires.

I would never suggest a Plan F (low deductible). Plan G covers the same, except $166 Part B deductible in 2016, for about $250-350 per year lower premiums. The Plan G rate increases are usually lower than F low deductible also.

 

[rahod1]

There is no cap to your potential liabilities if you go without Medigap and Part D coverage. A Medigap F-HD plan for a 70 year old should be about $60-90 per month each with a Maximum Out Of Pocket (MOOP) of $2180 annually. Part D plans run $20-35 monthly plus copays. This is all someone in your situation requires.

I would never suggest a Plan F (low deductible). Plan G covers the same, except $166 Part B deductible in 2016, for about $250-350 per year lower premiums. The Plan G rate increases are usually lower than F low deductible also.

If you're in fairly good health, all *high deductible* plans...F-HD, K and L are good choices and limit your exposure to catastrophic
bills