Page 22 - Cover Letter and Mediicae Evaluation for Mr. Bruno V. Manno
P. 22

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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