STEVEN PERSKY & associates, LTD

Insurance Brokers and Consultants

CALL STEVEN: 312.240.9030


MEDICARE Benefit Planning

Enrollment into Medicare can occur prior to age 65 if one becomes eligible for social security disability benefits. For most of us, we are eligible for Medicare on the 1st of the month in which we will reach age 65. Medicare health insurance benefits include Part A for hospital-related benefits and
Part B for physician and other non-hospital related benefits. For most of us with adequate work history, Part A is provided at no cost and Part B has a monthly cost of $135 which is paid either as a deduction from your social security retirement benefit or you will receive a bill from Medicare each quarter until you begin your retirement income benefit. The monthly cost for part B (and Part D) is dependent on your family income and marital status. The monthly cost for Part B can be over $500 per person. There is an income scale which illustrates the monthly cost for individuals who have annual earnings over $85,000 if single or $170,000 married. This increase in cost for higher earners is called IRMAA (Income Related Monthly Adjustment Amount). Click here to see an example.

If you are still employed and able to continue a group insurance plan you will have a choice to either remain insured with the group plan or to choose to enroll in Medicare. Your choice as to which is better will depend on a variety of factors such as the group insurance monthly cost and the out of pocket claim exposure of the group plan compared to what you would expect with Medicare. (Keep in mind that if your employer size is below 20 employees then enrolling in Medicare is probably the better choice).

Eligible Medicare beneficiaries can choose a Medicare Supplement plan which is designed to pay the deductibles and coinsurance not paid by Medicare. This approach allows for the most flexibility in choosing which physicians or hospitals you can use. In addition to a Medicare Supplement, one would also enroll in a separate Part D (drug) plan.

Alternatively, Medicare Advantage Plans, sometimes called "Part C" or "MA Plans," are an “all in one” alternative to Original Medicare. They are offered by private companies approved by Medicare. Additional benefits such as drug, dental or vision can be included. The cost of Medicare Advantage type plans is often lower. However, your ability to continue with your existing physicians may be limited.

In my experience, I have observed that some individuals are initially wary of transferring their health coverage from private insurance to Medicare plus
a supplement. As Medicare beneficiaries access health care it seems to me that people are very satisfied with the level of benefit they receive and the accuracy and efficiency of most parts of the process.  I have yet to meet an unhappy Medicare Beneficiary.
If you would like to discuss your Medicare options please contact Steven.

Contact Steven at 312.240.9030

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