I have limited experience with high income folks an PDPs. Is it common for them to choose to forgo a PDP if they take none or cheap drugs? For example, I met with a man that sold his business and for the next five years I believe he will be paying the highest amount for IRMAA as the sale is in 5 annual installments. He isn't sure he wants to pay for the coverage to cover his atorvastatin. What do you all see with these types of indivuals and these situations?
IRMAA & PDP
- Thread starter agentjhc
- Start date
IRMAA on Part B will choke a horse compared to the $78 IRMAA on PDP.
https://hr.harvard.edu/files/humanresources/files/medicare_irmaa.pdf
The alternative is to postpone his PDP and pay a lifetime LEP.
https://hr.harvard.edu/files/humanresources/files/medicare_irmaa.pdf
The alternative is to postpone his PDP and pay a lifetime LEP.
- Thread starter
- #3
yeah. I noticed that as well. He will likely have IRMAA lifetime. But not at the highest rate
- 4,707
Use GoodRx for Atorvastatin. Decline D to avoid IRMAA
I'm starting to agree with this. Crunching the numbers, IRMAA PDP would be about $1000 a year, vs the lower lifetime LEP. Consider self insuring until you start taking a high cost med, and even then would have to be above premium + LEP + IRMAA to make sense to enroll in PDP.
- 4,707
At some point, down the road, the client will enroll in Part D. Triggering the LEP. The client will selectively forget the conversation, many years ago, where he saved $1000+/year not enrolling in Part D. I always document in my database the date/time we discussed this “ non Part D enrollment” strategy.
It's not about the $1000.
IT'S because he sees it as a penalty and wants to beat it!
PDP for the most part are worthless......but there are so many new $5k to $20k a month drugs, that drug cost may become a greater risk any other health care expense other than LTC.
What happens if he gets one of those drugs in February and can't get coverage till the following January?
He'll pay the insurance on the RV, Boat, Lake house, and toys without blinking an eye.
IT'S because he sees it as a penalty and wants to beat it!
PDP for the most part are worthless......but there are so many new $5k to $20k a month drugs, that drug cost may become a greater risk any other health care expense other than LTC.
What happens if he gets one of those drugs in February and can't get coverage till the following January?
He'll pay the insurance on the RV, Boat, Lake house, and toys without blinking an eye.
- 6,469
Caveat, not an agent.
I don't see PDP's as worthless, but I think the rest of your post makes sense.
