This is the time of year when the insurance companies are asking you to check your Medicare prescription drug coverage (Part D). How is Medicare constructed?

Medicare Part A- Hospital insurance

Medicare Part B- Medical insurance

Medicare Part D- Prescription drug coverage

I decided to check the retired private sector costs for a typical couple versus what public sector retirees are getting. Now let me say that I am not an expert in this area so input from people that read this message would be appreciated. Here is what I found as shown in the attached chart.

  • A retired private sector couple on social security has medicare part B premiums taken out of their social security checks for a total of $2769.60 annually.
  • The best supplemental medicare plan J annual cost for the couple is $4672.80.
  • Part D drug plan costs a total of $1034.40. This can vary depending on the amount and types of drugs included.
  • This makes a total annual cost of $5707.20 for the retired private sector medicare eligible couple. With plan J there is very seldom any copay.

Now look at the chart and compare this with a public sector retired couple using the currently available medicare supplemental plans for the Memphis City Schools, the Shelby County Schools, the City of Memphis, Shelby County and especially the MLGW. You will see that the total premium costs are greater than the total cost for the one private sector retired couple. Why? Does this make sense when you consider the large groups under the public plans versus the single couple costs?

Leave a Reply