My audience may be surprised to hear me talking about Medicare Supplements. You really shouldn’t be, as I have had to learn all phases of insurance coverage for people on Medicare, as well as health insurance for younger people, in order to explain that these sources do not cover long-term care. I have always included a section in my books to explain the world of Medicare, Medicare Supplements and Medicare Advantage and Medicare drug coverage, also known as Part D. I called that section “The M & M’s of Medicare” in my last book, Protecting Your Family with Long-Term Care Insurance.
Since writing that book, I became eligible for Medicare myself and had to explore my options for a Medicare supplement. I found an option that very few people know about that saves money while providing more choices. I have shared it with many family members and friends. I’m happy to share it with you, but first a little education.
Medicare supplement is a commodity
I’m so amazed when people tell me they are going to self-insure long-term care but can’t wait to buy a Medicare supplement. That’s because a supplemental plan to Medicare has become a commodity. Extremely wealthy people believe they have to buy one when they become eligible for Medicare.
Quick lesson: Part A of Medicare covers hospital bills. Part B covers doctor bills. Most people get Part A free. Part B has a monthly premium of $148.50 in 2021. People with income higher than $88,000 individual or $176,000 joint pay more. Part D provides prescription drug benefits, with a typical premium of $10-$20 a month.
In 2021, Part A requires a $1,484 deductible for an in-patient hospital stay. The annual deductible for Part B for doctor bills is $203. Until 2020, Plan F was the best Medicare Supplement plan as it paid the Part A and B deductibles and the other balances to Medicare-approved charges. This year, nothing pays the Part B deductible. Plan G is now the best plan and the policyholder has to pay the $203 Part B deductible.
One of the least understood aspects of Medicare is that the balances to Medicare are small. If you don’t believe me, just look at the Medicare Summary Notice that you receive when a claim is paid. Medicare pays the most for hospital stays. The patient has to pay the $1,484 (2021) deductible, then Medicare takes care of the rest.
The balance to the patient for doctor bills is 20% of what Medicare approves, which is usually way below the charge. That is for doctors who accept Medicare’s approved amount. Doctors who don’t honor Medicare’s approved amount can only change an additional 15%. Let me show you a specific case.
My cousin’s husband, age 70, battled several major health issues. He had purchased the top Medicare supplement (Plan F at that time) that covers all the balances to Medicare, including the hospital deductible and the extra 15% that doctors charge when they don’t accept Medicare’s approved amount. Take a look at the financial picture for his health care costs in a low charge year and a high charge year.
| High charge year | Low charge year | |
| Total charges | $56,158 | $10,109 |
| Medicare paid | $54,358 | $ 7,418 |
| Medicare supplemental premium | $ 1,980 | $ 2,038 |
| Medicare supplement paid | $ 1,715 | $ 393 |
| Net | $ 263 | -$ 1,645 |
You can see the result is the same, regardless of the size of the bills, can’t you? Balances to Medicare are very small.
Medicare Advantage vs. Medicare Supplements
Also, you typically have to stay within a defined network of doctors and pay more, or even all of the bill, if you go to a doctor outside that network. People who have a Medicare supplement can go to any doctor or hospital they want, without having to have a referral from their primary physician. I don’t know about you, but I like that freedom of choice!
The real kicker is carriers have been known to drop Medicare Advantage plans at any time, whereas Medicare supplement plans are guaranteed renewable, which means your plan can never be canceled as long as you pay your premium in a timely manner.
How I Save Money and Have Better Coverage
So here is the Medicare supplement that I have and to which I’ve referred many clients, family and friends. It is called a High Deductible Plan G. It has an annual deductible of $2,490 in 2022, after which all charges are paid at 100%, regardless of which type of charge…hospital, skilled nursing facility, doctor bills, x-rays, tests, lab work, anything, except drug charges. You will still need a separate Part D plan for prescription drugs.
For example, my aunt had open heart surgery which cost over $100,000. The most she paid was $2,300 (the high deductible for 2019).
Here’s the best part: Why pay $200 a month premium whether or not you have any claims that year?
“But we have to, right?” you ask.
No, you don’t.
Instead of paying $150-$200 a month for a Medicare supplement, the premium at age 65 is only about $25-$32 a month, depending on your age and where you live. W-H-A-T?
You read correctly.
You fund the high deductible of $2,490 (2022) into a special savings account that guarantees 3% simple interest, higher than money market and CDs, right? This is the account that the insurance company uses to pay the balances to Medicare for you. You can put it in all at once or just add to your monthly premium.
I started out paying $150 a month, then I went to $75 a month and have now dropped to $23 a month since my deductible account is fully funded and I’m not having many medical bills this year. If I start going to the doctor more, I can step the premium back up a little to keep my account funded.
The wonderful thing is that if you don’t use it all in one year, it rolls over to the next and keeps growing.
Further, there is no penalty period so it doesn’t lock your money up. Also, you can put in up to $4,000 and let it earn interest.
The insurance company that thought of this super cool idea is United American, which has been in business since 1947 and has an A (Excellent) Financial Strength Rating from A.M. Best Company and A- S&P (Very Strong).
There are two important takeaways from this way of providing Medicare supplement insurance:
- This account belongs to the policyholder, not the insurance company.
- There is a known out-of-pocket amount each year ($2,490 in 2022 plus the low premium), unlike a Medicare Advantage plan.
- Best case total cost per year (you had $0 in medical bills) – $360, assuming $30 a month premium
- Worst case total cost per year (you had many medical bills) – $2,850 (deductible + premium)
At this point, you are probably wondering why you have never heard of this option?
The simple reason is because it doesn’t pay a lot of commission to the agents who sell it. So there.
Why Am I Telling You About This?
Of course, you should know that I have an ulterior motive to tell everyone about it.
I want more people to get it and save money, so they can use the savings on a long-term care insurance policy! Because that’s where the REAL risk is.
The average ANNUAL out-of-pocket for people over 65 is less than $10,000 for balances to Medicare AND Part B and Medicare supplement premium. That’s equivalent to about six weeks of long-term care for daily eight hour shifts of home care or care in an assisted living facility. [projected from How Much Do Medicare Beneficiaries Spend on Health Care? Kaiser Family Foundation, 11/4/2019]
Most people have no idea that the balances to Medicare are this small. Most believe a Medicare supplement is critical to protect an unlimited amount of health care expenses, when the bottomless pit is long-term care!
With the 80 million baby boomers demanding home care and “country club” assisted living facilities, we can look for the cost of long-term care to easily balloon to $20,000 a month in 30 years and more like $30,000 a month in higher-cost areas like New England, New York and California. Women who need care longer than a year average needing care or 4.7 years and men 3.8 years. Let’s split the difference. Four years at $25,000 a month in 30 years is $1,200,000. People who self-insure have to generate that much after taxes and investment fees. Therefore my advice is, if you are going to self-insure something, self-insure balances to Medicare, not long-term care!
If you do want the comfort of supplemental coverage to Medicare, I wholeheartedly recommend the High Deductible Plan G.
Whether you are just becoming eligible for Medicare or want to switch from your Medicare supplement with a much higher premium, you can go to this website to learn more.
As a refresher, you have a one-time six-month period to get a Medicare supplement with zero health questions. This is the six-month period that starts the first day of the month you turn 65 and enroll in Part B of Medicare. However, United American will let you apply six months BEFORE your 65th birth month to get it done, then it is effective on the first day of the month in which you turn 65.
This is true unless you are still working and on an employers’ plan. In that case, you can save money and delay enrolling in Part B as long as you are working. Then you will get the one-time six-month Medicare Supplement open enrollment period once you enroll in Part B.
After that window, you can apply with health questions at any age to get the High Deductible Plan G plan with the lower premium and savings account that guarantees 3% simple interest.
You heard it here!
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The high deductible Plan G, makes good mathematical sense, I guess.
But I’d just like to relate my experience with medigap and comment on MA.
Now age 81, at age 65 I purchased Medicare Supplement Plan J in Florida (an Issue Age state). It has both saved me considerable medical expenses, avoided delays, allayed worries, and allowed peace of mind regarding medical treatment. At any hospital or doctor, I just show my United Health Plan J card and there are no questions. United Health then handles all rest.
As for Medicare Advantage, in my view fully half of the seniors who chose Medicare Advantage simply undervalue their own health. To put is bluntly, they do have the resources to have a Supplemental, but they prefer things that offer immediate consumer satisfaction, like cars, clothing, jewelry, travel, etc., etc.
My wife and I gladly pay United Health $590 per month and maintain a simple life.
Yours David Marans
Thank you for this alternative idea. I might even go this way.
However, I take exception to all simplistic Medigap versus Advantage plan comparisons, including this one. Besides your underestimation of the premium for High-Ded Plan G (it’s almost $56/mo. here in the Seattle area for a 65 year old), the most egregious fault is not including any premium amount for Part D, and a premium for a dental plan, (and a vision plan, and a hearing plan). If you add ALL those premiums up, then NOW you have a number you can fairly compare to the average $0/mo cost of an advantage plan.
For me, the MINIMUM total cost would be $56/mo for HD Plan G + $8/mo for Part D (cheapest plan) + $68/mo for Dental = $132/mo = $1584/yr. Plus… up to an additional $2490/yr paid out of the HD Plan G savings account. So, the cost in a super-good year (no medical expenses) would be $1584. In a maximally-bad year: $3974. *PLUS* the drug deductible and any copays for drugs.
Compare that to a $0 cost in a super-good year if enrolled in the Advantage plan; or $6500 (max out-of-pocket limit) if it’s a maximally-bad year. Plus (same as above): any drug deductible & copays.
So… In a good year, I’d be paying $1584/yr I didn’t need to if I had an HD Plan G (compared to paying nothing for the Advantage plan). In a bad year, I’d be paying up to $2526 ($6500 minus $3974) if I had the Advantage plan. That means, unless I have a maximally-bad year more frequently than every 2 years, I’d be overpaying to have an HD Plan G.
And it’s much worse for a regular Plan G: $191 + $8 + $68 = $267/mo = $3204/yr.
Now that we’re comparing apples to apples: I can sum up by saying that for any Medigap plan you’re overpaying *every* year just so you won’t have to pay as much out of pocket in the *few* years you do have big expenses. Also, it is my understanding that Medigap policies do NOT insulate you from providers who do not accept “assignment” and thereby charge more than Medicare/Gap will pay. You do not have that risk with Advantage plans.
If you think it’s advisable to overpay every year so you have “flexibility” — well, big networks such as United Healthcare and Blue Cross/Shield really do have pretty much have every provider in their network. I think I read where UHC has like 90%.
And if you take exception to my characterizing the bad years as “few”, then I’ll concede that a person with serious health issues may hit their worst-case scenario every year. Or, you could argue that the end-of-life years might involve multiple worst-case years. However, take into account that your non-health spending (travel, dining, etc.) in those years would presumably go down compared to your healthy years.
I concede your point about possibly being dropped (so having to change your healthcare provider) — that’s a concern.
I look forward to feedback.
Author
Hello Paul, thank you for the opportunity to swap thoughts and ideas about Medicare supplement vs. Medicare Advantage. It is good to challenge one’s thinking once in a while, isn’t it? Please see my thoughts after each of your comments. [Note: I put our names in front of each comment to make it easy to see who said what.]
From Paul Beam:
Thank you for this alternative idea. I might even go this way.
However, I take exception to overly-simplistic Medigap versus Advantage plan comparisons, including this one. Besides your underestimation of the premium for High-Ded Plan G (it’s almost $56/mo. here in the Seattle area for a 65-year-old), the most egregious fault is not including any premium amount for Part D, and a premium for a dental plan, (and a vision plan, and a hearing plan). If you add ALL those premiums up, then NOW you have a number you can *fairly* compare to the $0/mo cost of Advantage plans available to me.
Phyllis Shelton: I wrote the article with one company in mind and that is United American. The United American plan is available to you in Seattle and the premium is $44 per month for a 65-year-old, so that’s a savings of $144 from your equation. Your point is well taken about the additional coverages included in a Medicare Advantage plan. However, not every person needs glasses and/or hearing aids. In fact, many seniors no longer need glasses after cataract surgery, which is fairly common these days as people live long enough to develop cataracts.
Paul: For me, the *minimum* total Medigap cost would be $56/mo for HD Plan G + $8/mo for Part D (cheapest plan) + $68/mo for Dental = $132/mo = $1584/yr. And that’s without any vision or hearing plan, which I would pay out of pocket. But, adding in $240 every 2 years for 2 pair of Costco glasses, and $1500 every 5 years for Costco hearing aids, that equates to an additional $120/yr for vision and $300/yr for hearing. So, a more accurate # is $1584 + $120 + $300 = $2004/yr. Plus… up to an additional $2490/yr paid out of the HD Plan G savings account (or out of pocket if there is no savings account, which is the case for the HD Plan G available to me).
Phyllis Shelton: The savings account is available to you with United American and pays 3% simple interest, which would be $74.70 on $2,490. Your tax bracket determines how much of that you get to keep. The $2004 would change to $1,860 with United American.
Paul: So, the out-of-pocket cost in a highly unlikely, super-good year (no medical expenses) would be $2004 with an HD Plan G. But in a maximally-bad year it would be $2004 + $2490 = $4494. (I’m leaving out any drug deductible and co-pays, since I figure a Part D plan and Advantage plan are similar, so “a wash”.) But on the positive side: in a “normal” year, this plan should cause minimal out of pocket costs beyond the premium.
Phyllis Shelton: This is exactly my point Paul. With a regular Plan G, you are paying a higher premium whether you use it or not. Also, the interest earnings will increase as the unused High Deductible rolls over to the next year in the savings account. You can have up to 2X the deductible so $4,980 this year.
Paul: Compare that to a $0/yr cost in a super-good year if enrolled in the Advantage plan; or $6500 (max out-of-pocket limit) if it’s a maximally-bad year. However, in a “normal” year, this plan should cause co-pays. In the case of the plan I’m looking at, the doctor visits have $0 co-pays, and specialists are $40. But figure that most Advantage plans have something like $25/$40 co-pays, so maybe in a normal year you would spend an additional $100-$150 out of pocket for non drug-related co-pays.
Phyllis Shelton: There are many more co-pays Paul, such as for diagnostic testing, radiology (x-rays including MRI/Cat scan, etc.), urgent care, emergency room, ambulance, physical therapy, occupational therapy and there may be a co-pay for hearing aids. These co-pays may or may not exceed the 20% with a Medicare supplement. Important: Medicare supplement pays these co-pays. You have to pay Medicare Advantage co-pays out of your pocket.
The big Medicare Advantage co-pays are for hospital inpatient days and for outpatient hospital procedures. A “sleeper” is for a skilled nursing facility. Medicare allows up to 100 days and the co-pay for days 21-100 is paid by most Med supp plans. MA may charge a co-pay for some of those days. An SNF is not just a nursing home. That is also the rehab facility that many people are sent to after a hospital stay to recover from strokes, certain surgeries, etc. It is less expensive than a hospital so it is commonly used to reduce hospital stays.
One hospital stay on a Medicare Advantage plan with a co-pay of $400 or so a day could approach $2000, while a Medicare supplement would automatically pay the Part A hospital deductible of $1,556. The whole idea of Medicare Advantage is to control costs which means incentivizing people to stay out of the hospital and emergency room. The prior approval process for services and doctors plays a large part in cost containment.
Paul: Therefore… In a good year, I’d be paying $2004/yr I didn’t need to if I had an HD Plan G (versus $0 for the Advantage plan). But in a bad year, I’d be paying up to $2006 more ($6500 minus $4494) to have the Advantage plan versus the HD Plan G.
Phyllis Shelton: We should address the out-of-pocket maximum for a Medicare Advantage plan. According to the Kaiser Foundation, in 2022, the out-of-pocket limit may not exceed $7,550 for in-network services and $11,300 for in-network and out-of-network services combined. These limits will increase to $8,300 for in-network services and $12,450 for in-network and out-of-network services combined in 2023. In 2022, the weighted average out-of-pocket limit for Medicare Advantage enrollees is $4,972 for in-network services and $9,245 for in-network and out-of-network services combined. So it is important to understand this maximum for the MA plan you are considering. You also have to consider the model of MA plan. HMOs require you to pay 100% of out-of-network costs, while PPOs can allow out-of-network with potentially higher co-pays as they want you to stay in- network as much as possible.
Paul: [BTW: it’s much worse for a good or normal year if you have a regular Plan G: $191 + $8 + $68 = $267/mo = $3204/yr (+ $120 + $300 = $3624/yr).]
Phyllis Shelton: You are right.
Paul: Now that we’re comparing apples to apples: I can sum up by saying that for any Medigap plan you’re overpaying EVERY year just so you won’t have to pay as much out of pocket in the FEW years you do have big expenses. Also, it is my understanding that Medigap policies do NOT insulate you from providers who do not accept “assignment” and thereby charge more than Medicare/Gap will pay. You do not have that risk with Advantage plans.
Phyllis Shelton: Not true. The “G” plan (and formerly “F” plan) pay the excess charges for the doctors that don’t accept assignment. By law, doctors that participate in Medicare aren’t allowed to charge more than 15% of what Medicare approves and the “G” plan pays that.
Paul: If you think it’s advisable to overpay every year so you have “flexibility” — well, big networks such as United Healthcare and Blue Cross/Shield have pretty much have every provider in their network. I think I read where UHC has like 90% of the providers in the U.S.. In the Advantage plans I’ve looked at, I can obtain medical services throughout the U.S., including being fully covered if the provider is in-network. Also, the supposed advantage of having (limited) out-of-country coverage by having a Plan G, versus having an Advantage plan, does not bear out. The Advantage plans I’ve looked at have similar coverage terms as Plan G.
Phyllis Shelton: See my comments above about in-network and out-of-network out-of-pocket maximums.
Paul: And if you take exception to my characterizing the bad years as “few”, then I’ll concede that a person with serious health issues may hit their worst-case scenario every year. Or, you could argue that the end-of-life years might involve multiple worst-case years. However, also take into account that your non-health spending (travel, dining, etc.) in those years would presumably go down compared to your healthy years.
I concede your point about possibly being dropped (so having to change your healthcare provider) — that’s a concern. However, in the past 5 years, I’ve had 5 different primary care physicians. That wasn’t my choice. They all retired or moved on. And each new doctor, except one, has been very nice and very acceptable to me. So, at this point, I really don’t care if I have to change provider networks or doctors.
Phyllis Shelton: You may not care while you are healthy. If you develop a serious health condition and are being treated successfully by a specialist, it might really affect you if you suddenly lost access to that specialist. The other thing to consider is all the advance approvals Medicare Advantage requires for treatment, including specific services as well as for referrals to different doctors. This can be time-consuming and you are just wanting to be taken care of as soon as possible.
Plus, Medicare Advantage plans change. You are a researcher and will likely look at it each year as long as you are cognitively able. Most people won’t do that. Medicare supplement is simple by comparison without the prior approvals and networks. Medicare supplements are insurance policies and do not change their benefits ever.
Paul: I look forward to feedback. I am open to being shown the error of my ways. I realize that I am swimming against the stream of advice that says “if you can afford it, go with Medigap”.
Phyllis Shelton: What I really like about the HDPG Paul is that it makes a Medicare supplement affordable to most people. United American allows policyholders to build up the high deductible in the savings account by paying a minimum of $50 above the premium. So in Seattle, that would mean one could start with $94 a month. My state is lower cost so my premium at age 65 was $25. I paid $150 a month until the account was funded, then dropped back to $75 a month which kept some $$ going into the account. My claims are low so this year I dropped back to the original $25 a month premium.
Going back to the big picture, the choices and simplicity of Medicare supplement mean the most to me. The out-of-pocket is still significantly lower than Medicare Advantage whether I am sick or healthy, and I can budget for it. The worst case scenario is the deductible + your premium. Easy to budget! I prefer flexibility and simple coverage. I have cash long-term care insurance so I can use the money however it is needed because no one knows what future services look like.
Most importantly, Medicare provides a 12-month window for you to try Medicare Advantage and go to Medicare supplement with no health questions if you don’t like Medicare Advantage. Once that window has closed, however, you can’t get a Medicare supplement without health questions.
You may enjoy this article from the Kaiser Foundation about beneficiary experience for Medicare Advantage vs traditional Medicare:
https://www.kff.org/report-section/beneficiary-experience-affordability-utilization-and-quality-in-medicare-advantage-and-traditional-medicare-a-review-of-the-literature-report/
The “switching” section is very interesting. It discusses the number of people switching back and forth and why. It mentions people with severe health issues switching from Medicare Advantage to Traditional Medicare and people can do that. What they can’t do is get a Medicare supplement when they are really sick.
The other Kaiser Foundation article that addresses the current out-of-pocket maximums that I referred to is here:
https://www.kff.org/medicare/issue-brief/medicare-advantage-in-2022-premiums-out-of-pocket-limits-cost-sharing-supplemental-benefits-prior-authorization-and-star-ratings/
You can see that I took your comments very seriously Paul. Thank you for submitting them. If you do want more info about the United American HDPG, just go here: https://www.secretmedicareplan.com/
Please let me know if you have further questions/comments.
Phyllis, thank you! I’m 77, male and have always had Medigap Plan G w/ Anthem (I live in VA). I recently chose to convert my LT policy w/ J Hancock (since 2004) to “paid up”. I had been considering self-funding and found Medicare’s MSA in “Medicare & You”, which isn’t offered in VA. I then read about HD plans and asked the local broker we’ve used for years. I believe she suggested UA, as one of a few companies that offer a HDG. I’ve been fortunate to enjoy good health and am about to complete my first year in UA’s HDG.
My mo. premium for 2022 = $57 and to date I’ve spent $493 toward $2490. I wasn’t aware of the built-in (MSA-like) benefit available w/ this plan. Thank you. I’ve asked my broker what my 2023 premium will be, but she said they hadn’t released that information, yet. I am aware the 2023 deductible = $2700. In addition, I would like to find out more about the savings aspect.
Thank you again for this article, which I just happened to find.
Author
Hi Wayne, I’m glad you are asking about the savings plan that United American makes possible. I’m going to refer you to Kelly Andreasen at The Secret Medicare Plan to help you learn your options on getting this. I will send your inquiry to her, and her email is kandreason@metroifs.com so you will have her contact info as well.
Hi Phyllis,
My husband and I have had a Medicare supplement N for 2021 and 2022. The high deductible option was not discussed with us. We both will turn 71 this year. We had his employer health coverage until he retired near the end of 2020. The high deductible plan G looks good. I’m sorry we missed the window for no questions asked.
My husband and I are both on medication for hypertension and high cholesterol. The real concern is my husband had surgery for a brain tumor in February 2022. He completed six weeks of radiation and chemotherapy. He is now on Avastin infusions every 3 weeks and is doing well. I’m sure this will affect his ability to qualify. I have filled the questionnaire about long term care insurance.
Author
Hi Marcia – so sorry for everything you and your husband are going through! We do have certain annuities to help pay for LTC for people who can’t qualify for regular LTC insurance due to health issues. I’m glad you completed my questionnaire so we can help both of you with long-term care planning. Are you looking to change your Medicare supplement to the High Deductible Plan G? It’s likely you would be able to. If you want to pursue that, just complete the form at https://www.secretmedicareplan.com/ and my friends there will help you.
I have just contacted UA to change from a high deductible F plan to a G plan and was declined because of medications I took in the past.
How do I overcome this type of problem when the reasons I took the medications are no longer an issue. Should I reapply to UA for the high deductible G plan?
Author
Thanks for this question Naomi. I’m going to ask Kelly with The Secret Medicare Plan to contact you and answer your question. Her email is kandreason@metroifs.com so you will have it.
I have owned Anthem Medicare Plan F since my OEP 10 years ago. And satisfied. But, with Plan F no longer being offered, Anthem is simply forcing folks out by significantly increasing premiums. So began my search for an alternative Plan G. Only problem is I am Stage 3, Chronic Kidney Disease. Enter my old buddy, Phyllis, who immediately led me down the “Secret Plan”. Happy to say that United American accepted me with no rating, and with their Savings Fund annuity, now I’ve got total coverage for less out of pocket expense. Thanks a bunch, Phyllis, again.
My husband and I are both 71 and in good health. We are both on Medicare with no supplemental insurance. Would we be able to get the supplemental if we get sick?
Author
Hi Terry – so glad you contacted me. You and your husband are in good health now and that’s the only time you can get this supplemental coverage that I’m recommending. You most likely can’t get it once you’re sick. Just go to https://www.secretmedicareplan.com/ and enter your information. Kelly on their team will get back to you right away. Best wishes.
I am turning 65 in May, my husband is the major wage earner (I work part time) , so I am on is medical insurance with BCBS. He is a couple years younger than I am. My question: should I delay signing up for Medicare while he is still working and I am on his policy?
Thank you!
Author
yes Denise that is generally the best course of action. Then you can both go on Medicare together when your husband no longer works. I also recommend you go to my friends at Secret Medicare Plan and talk to them as well. They are experts in this area. https://www.secretmedicareplan.com/get-started/
My wife and I each have Mutual of Omaha Plan G Medicare supplement for 2021 and 2022. I’m unclear whether we can now enroll in the United American savings plan you describe along with our Mutual of Omaha supplement or it is too late.
Also, although in our 70s, we are finally looking into LTC too see whether it is possibly affordable for us. Thank you for all the helpful information you provide.
Author
Thank you for your question Dan. Just go to https://www.secretmedicareplan.com/ and click on “Contact Us” and put in your question. They will be glad to help you. For LTCi, all you have to do is go to my website and complete the short questionnaire here: https://www.gotltci.com/contact-us/ One of my amazing specialists will help you figure out the best plan for you and your wife.
Fantastic info. I’ll be looking into this immediately!
Author
so glad you found it helpful!
Hello Phyllis,
My husband is 68 and currently has HDPG since he missed the F plan by about 6 months. We currently pay $41 a month for the BCBS plan and about $30 for Aetna Part D. I currently try to save in a savings account for money we need towards the deductible. I am very interested in getting this 3% savings plan for that and fund it. Can you tell me how I go about doing that? We already let our insurance agent know we would be renewing for 2022 with the same plan and he said we didn’t need to do anything is we aren’t changing. Do we need to renew with United American? Do we pay the premiums directly to them and then they pay out the doctor bills? Not sure how that would work or how we would get started. Also, can you take the money out at any time for any reason if you wanted it? This almost sounds like an HSA. If it is some type of annuity can you lose the money? Appreciate all your information. It has been great!
Author
Great questions Donna! You would change to United American for 2022. You would pay your premiums to United American. You can fully fund the high deductible account or add some to your premium every month to fund it. It is called a reserve annuity but you can’t lose money. There is no surrender period like other annuities. You earn 3% simple interest on it. United American pulls money from that account to pay the balances to Medicare. Whatever you don’t use rolls over to the next year like a Health Savings Account. To get the full scoop, just go to http://www.secretmedicareplan.com and my friends there will help you understand it all.
Your math in the table below doesn’t add up to me. $56,158 – $54,358 – $1,715 = $85.00. That means I would owe $85.00, plus the $1,980 Medicare supplement premium. I don’t see where your net $263 comes from.
High charge year Low charge year
Total charges $56,158 $10,109
Medicare paid $54,358 $ 7,418
Medicare supplemental premium $ 1,980 $ 2,038
Medicare supplement paid $ 1,715 $ 393
Net $ 263 -$ 1,645
You can see the result is the same, regardless of the size of the bills, can’t you? Balances to Medicare are very small.
Author
I did not lay that out very well Jay. I was showing only the difference between the Medicare supplement premium and what the Medicare supplement paid. [$1,980 – $1,715 = $263 in the first column and $2,038 – $393 means the person paid $1,645 more in premium than the policy paid that year. Either way, balances to Medicare are small. The big risk is long-term care.
Brilliant article, Phyllis. Too bad more people don’t understand The Big Picture on this. Thanks so much!
Excellent information, but I have a question. Would people who are already over 65, in poor health, and currently on Medicare qualify? Fortunately, I am not one of those people, but I have friends who are.
Author
Hi Julia – people first eligible for Medicare can get this plan regardless of health. But if they are past that “open enrollment” period, they have to go through underwriting. I still advise them to go to the website https://www.secretmedicareplan.com/get-started/ and find out if they qualify now. Thanks for the question as I’m sure many people will wonder the same thing. It’s the same with long-term care insurance. You don’t know unless you try.
I am just wondering if you are familiar with the med advantage plan that nyc retirees are about to get . It is supposed to be one specifically created for them with expanded benefits . I am not on Medicare yet but about to turn 64 so am interested in knowing about what lies ahead . I already have long term care insurance which I got from you . Thanks
Author
Good to hear from you Suzanne. I checked and the Medicare Advantage plan for NYC retirees is still under discussion. My reaction however is that it could have a much higher out-of-pocket than a Plan G Medicare supplement.
Really great to hear from you again… I’ve been selling HDF And HDG plans for years with UA. I love your explanation.
Personally I have a F Plan (age 69) and in great health. I love going to the doctor and never paying for anything. Yes, its expensive, but my health which is really great is so important. Is there anything more important?
Best to you.
Author
Great to hear from you again Lee and so glad you see the value of this plan! I have the HDPF which isn’t for sale anymore, but now I can enjoy a monthly premium of $23 as my reserve annuity is fully funded for the 2022 deductible. If I have medical issues, then I can always throw more into it, but for now I’m going to enjoy “coasting” at $23 a month Medicare Supplement and $13 a month for my Part D premium. Medicare is one of the best parts of aging!
Good morning! I am a past Phyllis Shelton student & am a lifetime CLTC member. I establish the need for LTC with clients especially those who reach out to me, but when I offer quotes using a couple of options, most back off & decide LTC is a commodity which is so disturbing & frustrating. I provide local Assisted Living & Skilled Nursing costs to show them the real world, but that doesn’t even seem to stir them. I find that prospects want & know they need LTC protection, but don’t want to pay for it. The low Medicare Advantage premiums as seen on TV may be part of the problem.
Medicare Supplement HD-G question: I realize that there is almost no commission to sell this, but I have a moral obligation to take care of my clients so I make that option available & recommend it. My question is that I thought someone who has the HD-G would have to reach the $2,490 plus the Part D deductible of $203 (2021). Does the $2,490 include the Part B $203?
Author
Hi Robert – glad you are still out there pitching! We can’t give up! To answer your question, the out-of-pocket does not include the $203 Part B deductible, mainly because it changes with income. Also, it doesn’t include the Part D premium. I just dealt with the Medicare Supplement part…but still, there is a known out-of-pocket, regardless of how large the medical bills are.
I thought the Part B “premiums” were impacted by income via IRMMA surcharges but didn’t think Part B “deductibles” were. Aren’t part B deductibles a set amount each year determined by Medicare and the same for everyone?
And would the HD-G plan also be impacted by IRMAA surcharges as well? So someone earning higher than 88K (2021) per year would have not only the premium (although quite low) plus the deductible, but also the applicable Part B IRMAA surcharge each month (depending on income)?
I’m sure I may be confused on some aspect of this! The HD-G though warrants a second look for me however (current have just regular “G”).
May have to give you a call 🙂
Author
You are correct. Only the Part B premiums are impacted by the surcharge related to higher income. The Part B deductible is a fixed amount for everyone. The HDG premium is not affected by the surcharge. It depends on age and geographical location.
Hi
I pay about $550 per month for Medicare part (A and) B. Will this stop if I only get A? Thus, I could put the $550 in the savings plan? This will lower a little in 2022. I am still working.
Author
Hi Keith – The $550 is your Part B premium, which is determined by your income. Part A is free to anyone who has worked at least 40 quarters. You can’t get out of Part B since you have triggered it, but if you are on an employer plan, your eligibility for a Medicare supplement is extended to when you retire or if the employer drops your insurance. You didn’t say if you have an individual supplement now or if your employer is providing a supplemental plan. To make sure you understand your options, I encourage you to submit an inquiry at https://www.secretmedicareplan.com/get-started/