Question:
Hello. I am on Medicare and have an AARP supplemental plan that gives me full coverage. I recently qualified for CHAMPVA and I’m wondering if I can drop my expensive AARP coverage and/or my prescription part D plan. Will CHAMPVA cover expenses the same as a Medigap plan? Thank you.
Jim's Reply:
CHAMPVA is outstanding health insurance but it takes a little effort and patience to get used to. My wife uses her Medicare and her CHAMPVA together and it provides her with high quality care and prescriptions both by mail and at a local pharmacy. We're sure that her health benefits are better than mine!
There are intricacies and mysteries when you start using CHAMPVA. Yes, it should cover everything but some things need preapproval and that can get confusing. I've never been a believer in any sort of supplemental Medicare insurance as most of those receive terrible ratings in consumer reviews. Rather than a "Medigap" policy, we save the money we'd be paying for that policy and pay out of pocket expenses with no pain.
And again, I've viewed Part D as a terrible deal and unless you need some exotic and hugely expensive meds it makes more sense to pay out of pocket. However, your CHAMPVA should pay for all your meds although there are small deductibles on occasion.
The best I can tell you is that health insurance is a personal decision that you have to make based on your tolerance for risk and the economics you face in day to day life. A lot of folks are over-insured and they're happy knowing that they'll get care and not take chances with billing and debt. Others, like me, are el-cheapo by design and we look for cost savings at every step.
Before you drop your current insurance, get comfortable with CHAMPVA. Talk with your doctor's billing office and listen to what they say. Visit your favorite pharmacist and learn what their experience with all the insurances are. These people are all happy to talk to you about how they get paid because it's in their best interests!
Go for it. Good luck!