Question: I will be 65 this fall. My husband is retired from a large company. What we have heard is if we get a Medicare Supplement policy they will cancel our insurance with them. As it is now my husband cannot even afford all of his medication. I am not real sure but this is what I have heard. Just this month I have had an eye scratch and have spent out of pocket 350.00. Do you know anything about this?
Answer: All retirement insurance is not the same. I can't give you an absolute yes or no about a supplement policy canceling your company sponsored insurance but it really would not make sense to get a supplement and also have the company insurance unless the company is paying 100% of your premium and even then it wouldn't really benefit you to have both. Getting a Part D prescription plan WILL cancel your company policy IF the company policy has prescription coverage.
Here is what I recommend: Evaluate what your insurance through your husband’s former employer costs and what it pays in benefits. Compare that to what Medicare and a supplement and drug plan will cost. If your combined income for 2010 was less than $170,000, then you are going to pay around $275-$300 /month (each, assuming you don't use tobacco) for your Part B premium, Supplement Plan F and Part D drug plan. That combination would pay 100% of your medical costs leaving you only the expense of copays for your drugs.
I realize it can be confusing. I help people in your situation all the time. Sometimes it makes better sense to keep the company provided retirement insurance, sometimes not. I can help you figure out what's best for your situation.