Asked anonymously

Is Medicare Part B a good value?

My mother is a widow. She is 84 years old and receives $1,450 per month from S.S. and has savings of $50k in various stocks and bonds. She has no other income or money . Her S.S. covers her monthly bills. She has a 10k life insurance policy that costs $140 per month. She has no health insurance. She has Medicare Part A which is at no cost to her. She has never enrolled in Medicare Part B and will need to pay a hefty monthly late enrollment penalty if she now enrolls.
Now to my question ... Can my mother afford to now buy into Medicare part B? Should she go ahead and pay the hefty premium even though it will deplete her $50K in savings much sooner than if she didn't purchase part B? And finally, if she should go ahead and purchase part B, should she cancel her $10k life insurance policy and use that to help pay for part B?

Report Question Report

  Leave Answer

Sign in to MoneyTips
By submitting you agree to our Terms of Service

  Answers  |  1

November 08, 2017

Have you looked at whether you can claim your mom on your tax return as your dependent--then put her on your insurance plan (as your dependent)? You may want to see how much the penalty would be for not opting in when she was 65, then compare that to what it would cost you to claim her as a dependent--then make your decision. To claim her as a dependent, she does not need to live with you but you must also provide more than half their financial support during the tax year.

$commenter.renderDisplayableName() | 09.30.20 @ 21:35