Recently, a word has been creeping into my vocabulary: retirement. I have reached that point: I turn 65 in January, and I’ve been at my employer over 35 years. So I’ve been meeting with my financial folk, and that side seems to indicate that it is plausible. Right now, the unofficial target date in my head is mid-2025, but nothing has been put in writing yet.
Part of the reason is that I’m still exploring and trying to understand Medicare. You think they would make the process easier for seniors to understand, but it really is a complicated alphabet soup, with parts A, B, C, D, and G*. I did find a good explainer at the Arm and a Leg Show podcast, but it wasn’t specific to what I’m exploring. Anthem does have an explainer. I also plan to use the help service provided: SHIP help (which is government sponsored, not done by an insurance agent). But I would also like opinions from people who have experienced this stuff. Hence this post, which is a better place to collect responses.
- Retiree Medical: Circle A offers a retiree medical plan, for which they make a monthly contribution toward the cost of the plan (in my case, about $488). This plan is a Medicare Advantage plan: Anthem Medicare Plus PPO with Senior Rx Plus. Here’s the information I have: (1) Get to Know Your Group Plan; (2) Plan Summary; (3) last year’s Open Enrollment Guide. This appears to be the same plan offered to many retired teachers, union workers, and government employees.
Question: Is anyone else on this specific plan, ideally in California? If so, I’d like to know your opinions of it. I have no interest in plans from other insurers; my employer doesn’t contribute to those.
- Medigap: The alternative to doing the Medicare Advantage plan would be to do traditional Medicare with a Part D and a Medigap plan, also called Medicare Supplement. The A&L Show seems to indicate this is the better approach. I did find a page listing the Anthem Medigap plans in California.
Question: If you are on a Medigap plan, which plan and how do you like it? My understanding is that all the Part G plans at a particular tier are pretty much the same, but I’d like opinions.
Before I commit to any options, I want to understand them. And, before you respond: Yes, I know Medicare Advantage can be a trap, and that you often can’t change out until specific periods… and that going back in creates even more problems. That’s why I want to get this right now. Yes, I know to not go anywhere near United Health Care.
Right now, I’m pre-Medicare age. My wife is over 65, but has signed up for Part A ONLY, being covered under my employer plan (which is Anthem PPO, so we know them).
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* Understanding retirement funds is equally confusing: When can you withdraw from IRA vs 401(k) vs 403(b)? What counts as what types of income? What are tax implications? How do defined pensions (which I luckily have) and Social Security fit into all this. But luckily for the financial side, I have my trusty accountant and financial support from Fidelity, where the retirement funds generally are.
I am not retired and am still covered by my employer’s health plan. However, I’ve been reading what I can get my hands on for two years now and I cannot strongly enough recommend a Medigap plan over a Medicare Advantage plan. I mostly hear negative things about Advantage plans, except from people who are extremely healthy (i.e., never need the coverage) or are too poor to afford a Medigap plan and the resulting costs.
The r/Medicare community on reddit sometimes has good advice and answers to very specific questions, but has a lot of Medigap agents who are quite defensive. I still recommend lurking there and maybe asking your questionl
For reference, I asked at https://www.reddit.com/r/medicare/comments/1cnzdii/nearing_retirement_anthem_medicare_plus_ppo_with/