October 15th marks the first day of Medicare Open Enrollment. Employees ages 65 and older have the option to switch from their employer provided comprehensive medical package to a government provided Medicare plan. Making this change has substantial potential cost savings. To put this into perspective, let’s look at an example of a 64 year old man named Sam:
Sam is turning 65 this February. Now that open enrollment season is active, he is comparing his current coverage to a Medicare plan.
– Sam has an employee-sponsored group plan
– monthly premium = $980
– additional out-of-pocket costs for treatments such as doctor visits, urgent care, and prescriptions
– When he looked at a Medicare plan, he saw
– Part B = $135
– Part D = $40 (premium and prescriptions)
– Suppliment G = $150
– Medicare Part B Deductible = $185
– Total = $510
– If Sam switches from his group coverage to Medicare coverage, he saves a monthly $470 on healthcare expenses.
Open enrollment ends December 7th. Although today is only the first day of open enrollment, time flies during the upcoming holiday season, so don’t miss your chance to opt in. Make sure to give Precision Benefits Group a call at (215) 235-0540 to discuss the different Medicare plans available.
(These numbers are only used for demonstration purposes, please discuss with Precision Benefits Group for a free and accurate estimate of cost savings).
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Rob is an employee benefits expert with over 25 years of experience. He is the founder and principal of Precision Benefits Group, a leading provider of corporate benefits plans. He is a member of the Philadelphia Business Journal Leadership Trust and regularly contributes to the publication.