With inflation driving up the cost of goods and services so quickly over the past few years, it’s been tough for consumers to keep track of costs. However, a recent survey shows many people nearing retirement have a good handle on what to expect from the Medicare premium costs.
A Mutual of Omaha survey of consumers aged 60 and older who are not yet on Medicare reveals that 40% estimate that in addition to the Part B premium they will pay to Medicare, additional private insurance coverage will cost between $100 and $199 per month. Another 25% expect to pay $200 or more.
Those estimates line up with current industry costs, said Mutual of Omaha Vice President and Actuary Chris Haire.
“Right now, an average monthly premium for a new Medicare supplemental insurance policy is about $125 to $130,” Haire said. “We also saw premiums increase across the industry by about 3.7% from 2021 to 2022.”
As prices for coverage go up, it may be tempting for some to purchase coverage based solely on premium price. Haire warns that decision can backfire if a policyholder experiences an unexpected major health problem.
“Lower premium Medicare plans will likely have higher out-of-pocket expenses than those with higher premiums, so a heart attack, stroke, or cancer diagnosis could prove even more costly in the long run,” he said.
Before purchasing any coverage, it’s important to understand your Medicare costs and know exactly what will be covered and what your expenses will be, Haire said.