Anne didn’t enjoy it one bit.  I helped, but she did the research and chatted with the salesmen.  It has been a three month process, but today she finished contracting for health insurance under Medicare. 

I provide this report because I know many of you are also approaching the magic age of 65 and will have to endure the ordeal of signing up for Medicare.  Good luck.

Until today we were both insured through an agent/insurer, Highmark Blue Shield.  One bill a month was paid.  Now we will continue to pay Highmark for me and three other companies for Anne.  Four bills will be paid each month.  How exciting.

Anne’s previous cost for insurance was:    $3728.
Now it is:
Medicare Part  A (Hospitalization)                      0.    U.S. Government Insurance
Medicare Part B (Medical)                            1380.    U.S. Government Insurance
Medigap (Part G) (Deductibles)*                   1320.    Mutual of Omaha   
Medicare Part D  (Drugs)                               180.**   Humana
TOTAL                                                        $2880.
Savings                   

My previous cost for insurance was            $3728.    Highmark Blue Shield
But, since I am now solo it will be               $3999.

Anne’s out of pocket expenses
have averaged:                                           $1420.

Under the new plans they should
maximize at                                               $  150.***

My out of pocket expenses are unchanged.

We have generated a couple of thousand dollars
of tax savings each year through deductions for
medical expenses (including insurance) and
contributing to a Medical Savings Account.
We may loose some of this, but I can’t determine
that change yet so don’t include it here.

In total our savings through Medicare:     $1846.

Thanks kids, though I don’t know why you should be contributing to our health care costs?

It would be much, much, simpler and cheaper if the federal government simply wrote Anne a check each year for $1846.  Then we could stay with the same joint insurance policy and deal with one agent/insurer.  But, the government makes Medicare an offer you can’t refuse, so Anne takes it. 

I suspect that if there were no Medicare and federal health insurance requirements, we would save half of our medical costs and receive much more practical health care.  We might survive a few years less, but we would better enjoy spending all the health care savings on living.

Ironically, I suspect many people believe that the government will provide for your health care when you are 65.  Well, above are the facts.  In a few years the government sponsored plan may cost more than insuring without it.  No reason to sign up for Medicare.  But wait, didn’t Congress just pass a law saying everybody has to go with the government plan?  I guess there is no way out except maybe going to Mexico or Costa Rica for health care.  It might become worth the trip.

How did the government get into the health insurance business?

*  The Medicare deductible is 20%, so one is almost obliged to purchase additional insurance to cover it.  We currently have a "high deductible" policy, but the deductible is capped.  Not so Medicare.

** Anne currently takes no prescription drugs and so is purchasing the lowest cost plan.  If she begins regularly taking expensive medications, she may switch at year end to another plan.  She purchases a plan now only because there is a severe penalty if you do not take such a plan at age 65.  She has done without one for 65 years.

*** I won’t guarantee this.