Dropping Union Benefits for Medicare Supp

[toc3]

Just spoke with a lady, she is 66. Her husband is T65. They have Health insurance through the Bricklayers union. As it stands right now, a supplement for each would be cheaper and better. My question is this. As far as the Wife go's whom is 66 and because this coverage includes drugs, would she be able to enroll into a PDP if she dropped coverage?Would she have to wait until Nov. 15th?

 

[retread]

Just spoke with a lady, she is 66. Her husband is T65. They have Health insurance through the Bricklayers union. As it stands right now, a supplement for each would be cheaper and better. My question is this. As far as the Wife go's whom is 66 and because this coverage includes drugs, would she be able to enroll into a PDP if she dropped coverage?Would she have to wait until Nov. 15th?

Question: Is the bricklayer husband still working? If so, he can opt out of Part B and save $96.40/mo. You need to consider the additional Part B premium if he enrolls in B in order to qualify for a Med Sup. Also, drugs are usually offered with group, so he would need a PDP. If he continues to work, his union benefits would act as Supplemental to his Medicare (usually) and he wouldn't need a Med Sup (or a MA plan) or a PDP. In most cases, he would not benefit from a Med Sup. And if he delays Part B, will preserve his open enrollment benefit for when he eventually does enroll in B when he retires or drops group, whichever comes first.

Wife is another situation. Is she already enrolled in Part B? (One would assume so unless she is working, too.) Her protection of her husband's union benefits will often be less expensive than a Med Sup, especially if it included drugs. For her husband to drop family (or spouse) coverage may save some $$$, but I doubt it.

I would not advise husband to drop group. Make sure he contacts HR. Once he drops group, he won't be able to get it back (in most cases). The most I would consider would be to drop wife's coverage and enroll her in a Med Sup and PDP (losing group will trigger an SEP for PDP enrollment). But you need to compare the cost of the Med Sup plus a PDP against her group premium.

 

[toc3]

Thanks Retread, I did advise her to have her husband talk to HR first. I did not think to ask if she was required to take part B when she turned 65. Some group plans do require that. I will be talking with her again next week. Just wanted to make sure I had my ducks in a row before talking with her again.

 

[Cenla Agent]

I agree with retread's comments. Of course, I have no idea what their union benefits are or will be once retired. Retirement coverage tends to vary widely these days, union or not. Consider that a supp may be cheaper and better now, but what will it cost 5-10 years from now? (Please understand that I'm not against supps.) There have been plenty of people who have enrolled in a supp at age 65 that was $85 per month but ended up being $285 per month by the time they were 72. If they can't be underwritten by that time due to health and can't afford the premiums, it's then MA or A&B only for them unless they have VA.

If people have decent coverage and premiums with their group coverage, I almost always advise them to keep it for these reasons.

 

[Winter_123]

I agree with retread's comments. Of course, I have no idea what their union benefits are or will be once retired. Retirement coverage tends to vary widely these days, union or not. Consider that a supp may be cheaper and better now, but what will it cost 5-10 years from now? (Please understand that I'm not against supps.) There have been plenty of people who have enrolled in a supp at age 65 that was $85 per month but ended up being $285 per month by the time they were 72. If they can't be underwritten by that time due to health and can't afford the premiums, it's then MA or A&B only for them unless they have VA.

If people have decent coverage and premiums with their group coverage, I almost always advise them to keep it for these reasons.

Rationale depends on the state of course. If your med supps are community rated then it changes some of the logic because you dont have the increasing cost of the supp rates, at least not increasing based on age.

 

[Cenla Agent]

Rationale depends on the state of course. If your med supps are community rated then it changes some of the logic because you dont have the increasing cost of the supp rates, at least not increasing based on age.

Right. I was thinking of attained age supp pricing but didn't make that clear.

 

[MedSuppPro]

I interviewed a Bricklayer Union Retiree insured whom had a one year trial period. Yep, they could drop their plan and then go back within one year. I had them get it in writing and they did! Please don't take this as being applicable for all Bricklayer Union Retiree's.

Their benefits package was broader and better then a MedSupp + PDP or MAPD.

I walked away from the Bricklayer couple without touching their package and they gave me 3 referrals.

PS Winter, I wounder what your avatar will be after W goes to O?