Is Medicare Better Than Employer Insurance?
June 15, 2020 | Kari Mellone
As you turn 65, if you’re still working you may be able to stay on your employer insurance. For many people in this position, they may not know if it’s better to keep their current insurance or switch to Medicare.
Determining the best choice for your healthcare depends on your individual needs and budget. Healthcare costs may take up a significant portion of your monthly budget expenditures, even if you are healthy. But cost isn’t everything. Before making a decision, compare how comprehensive the plan is and any expected outside costs associated with either plan.
We’ve put together a list of a significant factors to consider when comparing Medicare and an employer plan option. We offer exploratory appointments specifically for helping you review this information.
- Is my employer plan creditable?
- To avoid penalties health insurance coverage through an employer must be creditable.
- Access to Care/ Network of Providers
- Premium Cost
- Deductible
- Copays/ Co-Insurance
- Out of Pocket Maximum
- Prescription Drug Coverage
- Travel Coverage
- Extra Benefits (eye, dental, hearing)
How much does each plan cost?
The total cost isn’t easily compared without calculating your additional expenses and creating a must have list for your healthcare needs. There is a large variance in plan benefits and considering the options closely is critical to determine what will be the best fit for each individual. What is ideal for one person may be very different than what is most suitable for your neighbor, spouse, etc.
Is Medicare and private health insurance coverage comparable?
You will want to consider what is covered for the cost when assessing the right health coverage for you. For example, Original Medicare has no prescription drug coverage plan, nor does this plan cap out of pocket expenses. However, most Medicare recipients opt for some supplemental plan for a more customized and comprehensive solution.
Employer-sponsored healthcare plans usually have similar options for the level of care you want to receive and the price you want to pay.
There are many important factors to consider when comparing Medicare and employer coverage options. Review our article on Do I Have to Sign Up for Medicare if I Don’t Retire at 65? for other significant details when making this decision.
Still not sure what the best option is for you? Contact us to set up an appointment and talk through your options.
