In the past few weeks we’ve been seeing people make the same costly mistake with their Medicare decisions. In this post, we want to share with you what that mistake is and how you can avoid it.
In recent years, statistics show that more and more people are working past age 65. Also, once people are turning 65 they are still holding onto their health insurance through their retiree benefit plan. With this, we are seeing that many of these people are assuming that their retiree benefit package or employer plan is the better choice over Medicare. It’s an easier option because they’ve been on this plan for many years and it works. This is where the common mistake comes in.
If you assume that your current employer or retirement plan will work best for you once you’ve hit 65, you could be making a costly mistake. We are finding often that many of these plans don’t necessarily make since to stay on for those turning 65.
It’s a common misconception that just because you can stay on an employer or retiree benefit plan that it makes the most sense to do so. With that said, there have been instances where the sponsored plans are better, however it will depend on your specific plan.
We were recently helping a teacher in Washington State as she was trying to decide to between staying with her employer plan or enrolling in Medicare. After comparing both plans, we found out that she would be able to save $13,000 in the first year alone by joining Medicare.
Again, choosing between a sponsored plan or Medicare will depend on your situation. However, one thing we will say is that more than likely you’re paying more for health insurance through your employer. We’ve found that, on average, people are paying around $250 more, which doesn’t include the high out of pocket expense that averages around $2,000.
Therefore, it will always make sense to compare your employer or retiree plans with Medicare because ultimately, Medicare could be the better choice for you. Don’t assume one will work better than the other.
With Medicare you could potentially save more money, have access to more doctors and have higher coverage for prescription plans that you didn’t have coverage for in the past.
If you’re looking at working after age 65, this is something very important to consider. You’re not alone, we welcome you and would love to help you compare your employer plan with Medicare. It is worth your time as it could save you a lot of money.
