Do the math, seniors, on supplemental insurance
Social Security recipients and Medicare participants: “There is no inflation” … and pigs fly! Yet, a notice just came from Blue Cross-Blue Shield that the supplemental health insurance policy will jump more than $100 a month to an astronomical $240 a month come January and it only covers the final 20 percent of medical bills. For about $105 a month, Medicare pays for 80 percent of medical bills.
At 5:30 p.m. July 13, CBS News reported the health care spending per person in 2016 will total out at about $2,000. That breaks down to about $166.67 a month. Medicare will pay $133.34 against your monthly premium of $105, so you are $28.34 to the good per month on average.
Then comes Blue-Cross Blue Shield, gouging us to the tune of about $240 a month just to pay the $33.33 Medicare does not pay. Simple arithmetic would tell me to put the $240 per month in the mattress – not my bank, where I would reap 12 cents interest at the end of a year – to pile up as much as $2,880 at the end of a year by staying healthy.
To break even with paying $240 per month to my supplement insurance carrier, I would have to incur $1,200 in medical bills to have them pay the paltry 20 percent, which comes to the $240, or price of the monthly premium. Back to the CBS News report of July 13 – we will incur, on average, only $2,000 in medical bills in all of 2016. Coming from the “Old School,” as you seniors do, I trust you have had no trouble following along with my factual reasoning.
Stay healthy and solvent.