Page 20 - Cover Letter and evaluation for Michael Hartzmark

Ways you may be able to save money

The average individual spends more than $100,000 for health care during retirement.
Here are five steps that will help you control these expenses.

Re-evaluate your coverage each year during open enrollment. This is the
most important step you can take. Health insurance costs change yearly and
unless you have a Medigap policy, your benefits and co-payments will often
change. And of course your needs may change from one year to the next.
These are all good reasons to monitor your coverage every year during annual
open enrollment and to switch plans when you can save money. Doing so will
likely save you thousands of dollars during retirement. ◊

Manage your prescription drug costs. Studies show that 75% or more of the
people in Part D stand-alone plans overpay for their drugs by several hundred
dollars a year. If you have Part D coverage, remember that a low-premium
plan may not have the lowest-cost plan once you include co-payments and the
deductible. You should also select the least expensive refill schedule (mail-
order or monthly) and make sure that you use a preferred pharmacy in the

plan you choose. ◊

If you are in a Medicare Advantage plan, verify that all or almost all of your
physicians are in the plan’s network. Even if you have a PPO plan, you should
try to use network providers. The reason is that Advantage PPO plans typically
require you to pay 30%-50% of the cost when you see a non-network doctor.

And if a non-network doctor orders any tests or treatments, those may also
result in higher costs. ◊

If your Medigap premiums increase by more than 4% a year, shop around to
find a lower rate. Often you can switch Medigap insurance companies at any
time but in most states you will have to answer questions about your health
before getting a quote. You can also change to a less comprehensive Medigap
plan to reduce your premiums. As an example, you may save several hundred
dollars by changing from Plan F to Plan L and if you remain with the same
insurer, you will not have to answer health questions. ◊

Estimate your current health care costs and then project how much you’re
going to spend in the future. To get an estimate of how much you’ll pay over

the next 25 years, multiply this year's costs by the number 40. That assumes
your costs will increase slightly less than 4% a year. And if you track how much
you are spending each year, you will know if you stray far off course. Also,
don't underestimate how long you will live -- if you are in reasonably good
health at age 65, you may easily live another 25 years or longer. ◊

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