5 mistakes retirees make choosing a Medicare plan

Enrollment » Avoiding common missteps can save you thousands of dollars.

< Previous Page

Mistake No. 5 • Assuming retiree health coverage from a former employer is automatically the best deal or misunderstanding how it interacts with Medicare’s various parts.

Retirees are often loyal to their old employers, Votava said, but their retiree plan may not be the gold standard in terms of value for their money. In some cases, retirees could get better coverage at a lower cost by going with original Medicare and a Medigap plan or a Medicare Advantage plan. A basic rule of thumb is if seniors are spending more than $250 to $300 a month for their retiree coverage, they should shop around, Votava said. "Even people who are paying $200 could be paying $125."

Still, the decision of whether to drop retiree coverage can be complex, and it’s often irreversible, so take your time and seek professional advice if you need it.

If you have retiree coverage from a former employer, make sure you follow its rules concerning Medicare Advantage and Part D, Lipschutz said. Some retiree plans require you to enroll in a Medicare Advantage plan. Some will work with Part D plans while others prohibit you from signing up for a stand-alone drug plan, he said. "Sometimes people will enroll in a Medicare Part D plan and that enrollment might jeopardize their retiree coverage all together," Lipschutz said.

Copyright 2013 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

About Reader Comments

---

Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.