Nothing is quite as hard as working with family. Even more so if you and your entire family are licensed Medicare insurance agents.
My 89-year-old dad has been on a Medicare Advantage plan since 2005. He paid $0 per month. He had a lot of extra benefits like dental, vision, hearing discounts, and got money monthly for over-the-counter items like a digital scale and raised toilet seat.
He loved his insurance. He also never used it.
Dad has been very healthy. He has never had a surgery. No chemo, no radiation, no dialysis. He has saved tens of thousands of dollars having been on a Medicare Advantage plan all these years. Interestingly enough, my mom has been on Medicare Supplement all these years and she too chose wisely. She needed new hips and knees, which would have cost her more had she had a private plan instead of her Plan G.
I recommend that he move to a Medicare Supplement Plan G recently. At a cost of about $400 per month, he was steadfastly against the move. “Why waste that monthly premium when I’m healthy?” Alas, that is where a good daughter explains that insurance is about risk. At some point, an illness at an out-of-network provider could cost him $10,000. With an illness lingering to the start of a new calendar year, and another $10,000 out-of-network cost could accrue.
If you can afford a luxury car, you buy it. If you can afford to fly first class, you treat yourself. A Medicare Supplement in your 80s is a luxury expense. It is expensive but worth it if you can comfortably afford it. You can go to any doctor in the nation. You don’t have to deal with waits for prior authorizations for treatment. You can access the best centers for excellence hospitals in the nation (that normally do not accept Medicare Advantage plans). Need to go to the Mayo or Cleveland Clinic? They typically do not accept private Medicare plans.
I have many clients who got squeezed by the 5 to 10 percent annual price increase that Medicare Supplements take. Many clients in their 80s are escaping into a Medicare Advantage plan due to their budget. There is no right path; it’s a personal decision based on your health and budget. But if you can comfortably afford a Medicare Supplement, you’ll have less red tape and no networks to contend with.
No one knows when we will get sick or if we are able to die peacefully in our sleep. Insurance takes some risk off the table. You can buy less red tape with higher monthly premiums.
My parents are out dancing in Noblesville once a week, so if you see them, please congratulate my dad on his fine Medicare insurance choices.
Sylvia Gordon is co-founder of The Medicare Family, headquartered in Noblesville, where she educates thousands on Medicare and Social Security in all 50 states. You can learn more at TheMedicareFamily.com.