Medicare, A Solution for Aging Employees

by Miriam Zettlemoyer

Boy, oh boy, have we been forced into change the past few months. Change is hard sometimes, but it can also be a good thing. Perhaps not while in the midst of change, but once we venture to the other side and look back, it can be a refreshing force of peace. The world has turned upside down in many instances. We’ve been forced to stay at home, cover our faces, teach our children, look at our budgets, and yet we remain resilient to focus on different aspects of our every day that has changed us.

Covid-19 has created fear among us that created determination and perseverance to task what our day needs doing. Some of us have crawled into our caves while others have ventured out, denying the fear-full life. Our jobs have undoubtedly changed, and the way we go about simple pleasures will forever be questioned. Somethings, though, have remained Covid-19 resistant or Covid-19 resilient. We have learned different ways to adapt. As people, we need to continue to change or die.

A business that I began a decade ago has become more than I thought it could be and just as important as when I had the desire to start it in year one. The necessity to help people understand insurance, Medicare, and to guide them through their journey has become my mission. There are so many options and choices to select; it’s difficult to know which one would be best suited for your next term in life. Using an expert who works daily in all facets of insurance can create a stress-free approach in your decision.

The internet can also be a good resource in your decision, but the internet can’t confirm you are choosing the right option. Nor can it create certainty in your choice in the years that follow. One aspect that can be sometimes overlooked is incorporating Medicare as your employer plan. As many of us work longer and longer and push out retirement Medicare can be a great source of savings for a business budget by moving your 65 and older workforce onto Medicare.

In the era of age-based plans, the older workforce cost of insuring can be higher versus insuring the younger workforce. Initiating a plan to move all 65 and over employees to Medicare is a great option. The coverage is most often less costly for the employees regarding deductibles, co-pays, and can offer additional benefits like a fitness membership, saving them even more.

Employees would begin their Part B with original Medicare through the Social Security Administration at a current cost for most of $144.60. This cost can be paid by the employer. Additionally, they would add a supplement plan in which letters A-N are options, whereas most select plan G as a popular option. Depending on your zip code, age, gender, and smoking status, which then determines your pricing in this plan with most starting under $120/month. This again, can be paid by the employer. Plan G has a low deductible of $198/year, which is paid by the employee. A drug plan will then need to be added to help cover prescription drugs and would be reviewed by your agent to determine the best possible plan based on your current prescriptions. The drug plan premium is also paid by the employer, and they start as low as $20/month depending on coverage needs.

If your aging employees over 65 are costing you more in benefits than $300/month, we can offer you an alternative option. The option for employees is seamless, and most end up with better coverage, lower deductibles, and less out of pocket costs by shifting onto Medicare. Take a look at your current coverage and start adding up the savings by making this move. It can easily save employers $1,000/month for each employee over 65. How does that change your Covid-19 budget?

The employee can opt to stay on the employer’s plan for dental and vision, which are not included in a supplement plan in Medicare. Other options are available, but none that are offered to the employer in this situation. In order for the employer to pay for the coverage on behalf of the employee, they must choose a supplement and drug plan option versus a Medicare Advantage. This will leave a gap in dental and vision coverage, which can still be offered by the employer as a standalone option.

Working with a firm that has experience in this arena that can hold your hand through all the changes becomes a valuable option. Contact us and start saving on your business expense.

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