Quote:
Originally Posted by retiredguy123
Yes, in some cases, a few people can come out ahead with the supplemental insurance. But, most people do not. These insurance companies have a hugh profit margin, with very low risk. That is why they spend millions and millions of dollars on advertisements. If you can afford the co-pays, you are statistically better off without the insurance. Also, if you are lucky enough to have time to schedule an expensive procedure in advance, you can buy the insurance in the calendar year before the procedure and take advantage of the insurance. Overall, the vast majority of people who pay for the insurance for 15 or 20 years, will lose money.
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I think you will find most of the advertising dollars are spent on Medicare Advantage plans, not Supplement plans. In addition, the rates for Medicare Advantage and Supplement plans are regulated and while the companies providing this insurance are entitled to a profit the regulators do all in their power to insure it is not excessive. I'd also think you find that medical risk is not exactly " low ". If it was, the Affordable Health Care Act insurance providers would not be going broke as one example. The fact is medical risk is " low " for young healthy adults and the exact opposite for seniors. When you drive around The Villages and for that matter anywhere in Florida do you see any shortage of doctor offices or other medical facilities ? Also, do disbelieve the expert's predictions that the Medicare system is economically unsustainable in the long run ? Some senior somewhere must be sick.
Scheduling expensive medical procedures in advance and then buying insurance seems to me to be some akin to listening to meteorological forecasts a year in advance and deciding whether you want to buy Homeowners insurance including hurricane coverage for that year. Try scheduling a heart attack and a quadruple by-pass a year in advance.
I'd like to see the statistics supporting the comment " the vast majority of people ( presumably seniors ) who pay for medical insurance for 15 to 20 years will lose money " in light of the fact the Medicare system is basically insolvent. For crying out loud, most seniors are going to die from something medically related in 15 to 20 years.
With respect to the original poster rolling the dice as a senior on your health and likely medical expenses does not really seem to make much sense to the majority of people.
If you do not buy an Advantage Plan, depending on your economic circumstances give thought to a Medicare Supplement Plan. The best and most costly one is Plan F which will shortly be no longer available to new Medicare subscribers. There are other which will allow you to participate in your medical expenses for reduced premiums.