Got a Math Problem For Ya...

Bob_The_Insurance_Guy

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1000 Post Club
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Decatur, Ga.
Margie and Dan have both had Med Supps for the past 15 years. Never picked up a PDP when they had the opportunity to.

Both still take no medications, except for a HBP med.

They asked me how much would the total be, on top of what the PDP costs. They live in Fulton County, in Atlanta, Ga. Interested in Humana/Walmart plan for 2016. They asked me to ballpark it. Here's what I came up with:

$32.50 x .01 = .325 (Avg. Mo. Prem. x Penalty)
.325 x 12 = $3.9 (Mo. Penalty Amt. x 12)
$3.90 x 8 (Yearly Penalty x Number of Years since eligibility)

Again, how far off the mark was I. I told her not to quote me. I would check my sources and get back to her.

Go ahead and rip me to shreds... Didn't have my laptop nearby, so these figures were "winging it".
 
I got 32.64, close enough. I usually say, "I'm roughly guessing, Medicare will be the final say, but I'm usually close", that gets the point across.

8x12= 96

.96 x 34= my result
 
My starting date was October of 2007. To the best of my recollection, that was the month they needed to enroll in a PDP, once it was separated from Medicare Supplement Plans, due to the Medicare Modernization Act.

Called Humana, and they got an estimate of $28 to add to the $18.90, for a total of $46.90, which was $5 less than my estimate. She told me that there was a 7 month period where people were not penalized (Oct. 2007 through Feb. 2008).
 
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