Making the transition from employer-paid group health insurance to the strange, new world of Medicare, supplemental Medicare insurance, Prescription Drug Plans (Medicare Part D), and Medicare Advantage plans can be traumatic for retirees and for others who receive Medicare due to disability.
The first shock is the difference in price between the “FREE” group health insurance and the “outrageous” Medicare Supplement insurance premiums. What most retirees have no way of knowing is that their employers paid $600-$900 a month every month for their “FREE” plan, and those “FREE” plans still included $2,000 annual deductibles for the employee to pay.
For any of us who have worked with group health insurance, the shock for us is what BARGAINS Medicare Supplement insurance plans truly are. For example, the combination of Original Medicare + a Plan F Medicare Supplement insurance policy produces the equivalent of a $0 deductible / 100% coverage plan for the Medicare beneficiaries. And even when the Part B premium and Medicare Supplement insurance premium and Prescription Drug Plan (Part D) premium are added together, the total premium is still much less than the REAL cost of the employer-paid group plans.
Everything is relative, of course, and it’s sometimes difficult for people to appreciate what they pay now compared to what was paid for them by an employer before, but Medicare Supplement insurance is still one of the best buys out there.