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My mother is about to go into an assisted living facility. She has Medicare and a supplemental insurance? Does she really need the supplement? She could really use that $200 per month to pay for her assisted living facility expense...any thoughts?

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As you get older, you need MORE insurance, not less. Keep it. Mom had 8 trips to the ER for falls within 15 months.
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Yes, yes, yes! You never know what will happen and the nominal cost is worth the benefits, many times over.
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If your Mom always has had Medicare and a supplemental insurance, I wouldn't drop the supplemental insurance. The extra insurance will cover some of the things that Medicare won't cover.

I assume Mom's assisted living facility will be handling her meds. Thus, your Mom could be required to join their pharmacy insurance. Some Rx supplemental insurance work hand in hand with the facility Rx. Something to check on.
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