I met with a new client today. She is currently on an Employer Retiree plan covering her medical and prescription needs. A friend suggested that she should look into going onto a medigap/Medicare supplement and drug plan. Although it would be somewhat beneficial for her to switch to a medigap policy, she takes a prescription drug that only one stand-alone drug plan covers. In her case, switching from her retiree plan did not make good financial sense at this time. If she were to change out of the employer plan, her prescription costs would greatly increase over her current costs both initially and then into the donut hole/gap (which she does not have in her employer plan). We will meet again next year to re-assess.
My suggestion when I meet with anyone who is eligible for Medicare and is currently on an employer retiree plan is to assess the options of making a change – not only regarding total monthly premium(s), but also what the potential out of pocket costs are as well as possible changes/limitations that may occur with them changing their coverage.