Turning 65 might bring you mixed emotions. Understandably, this new phase has a lot of uncertainties and mystery. Health care and insurance coverage are no exceptions to that uncertainties.
Many seniors are worried about the rising cost of healthcare expenses. Because of that, finding the right health coverage is crucial. As you begin searching for healthcare coverage, take a look at these options first.
Different Health Coverage For Senior Citizens
It is important to know how various health coverage can help you. That way, you can plan ahead and know how you can utilize your options in the most effective way. Here are some of them:
A federal health insurance program that is given once you turn 65 years old. But there are also younger ages that qualify for the program and people with End Stage Renal Disease.
Medicare has different parts that cover different kinds of medical services.
- Part A –is the patient insurance which covers services while you are confined to a hospital or other facilities. It also covers care in a skilled nursing facility, hospice care, and some home health care.
- Part B –covers outpatient medical services, medical supplies, doctor visits, and preventive services.
- Part C – This type is provided by private insurance companies and is also known as Medicare Advantage plans. It has all the benefits of Medicare Part A and Part b. It also offers prescription drug coverage.
- Part D – is the prescription drug insurance that is also offered by Medicare-approved private insurance companies.
Medicare Supplemental Insurance Plans
Medicare is one of the perks of turning 65. Because of it, you’ll have assistance in handling healthcare expenses. But if you are someone who needs more medical attention than what Medicare can cover, what should you do?
You may want to consider a Medicare Supplement insurance plan. Also known as Medicare Supplement or Medigap plan, it covers the remaining Medicare-approved health care expenses that are not paid by Original Medicare.
Medicare covers only up to 80% of healthcare costs, so if you don’t have Medigap, you will pay the remaining 20% out of your pocket. In the long run, out-of-pocket expenses such as deductible and copays may pose a risk to your finances and become a burden.
Ten Standardized Plans
Medigap has ten standardized plans, each named with alphabet letters and offers different levels of coverage. Standardized means the same letter plan provides the same exact benefits no matter which insurance company sells it. The difference they’ll have is the cost of the premium which varies across different carriers.
You have to compare the ten Medicare Supplement plans to be able to find the best one that will cover your current healthcare needs at a reasonable price.
What if I don’t have a Medigap plan?
If you don’t have a Medicare supplement plan, you might possibly end up with these out-of-pocket expenses:
2019 Out Of Pocket Costs without a Medigap Plan
|What You Will Pay|
|Medicare Part A Deductible||$1,364 per benefit period|
|Coinsurance (days 61-90)||$341/day|
|Coinsurance (days 91 and beyond)||$682/day|
|If you use all the lifetime reserve days||You will shoulder All costs|
|Skilled nursing facility coinsurance days 21-100||$170.50/day|
|Medicare Part B deductible||$185|
If I have a Medigap Plan, how much will I be paying out-of-my pocket?
Different types of Medigap plans offer different levels of benefit. A plan may cover all or part of the out-of-pocket healthcare expenses left by Original Medicare.
Let say you chose to have a Medigap plan G, which is a type of Medicare supplement that provides comprehensive benefits. If you buy this plan, your out-of-pocket expenses may be just the Medicare part B deductible which is just $185 for 2019.
Long term care insurance
All of us are at risk of needing some form of long term care at any point in our lives, especially in retirement. Because of a lot of factors, women are most likely to need long term care.
Long term care services are also expensive just like health care costs. And the cost is estimated to continue to get higher over time. Since everyone is at risk of needing long term care, it is crucial to have a plan in place and most importantly protection against it. Long term care insurance can provide protection against the debilitating effects of long term care. It will not only provide protection for you but also to your family and assets in various ways.
LTC insurance is the coverage for nursing home care, home health care, personal or adult day care for seniors with chronic or condition that needs constant care.
Medicaid provides coverage to the most vulnerable senior citizens. It provides health coverage for people with low income and people with disabilities. you should meet the required income and asset standards and some specified eligibility.
Medicaid provides broad health insurance coverage including doctor visits, hospital expenses, home health care, long term care costs both in a nursing home and at home care. Long term care is not covered by Medicare nor Medicare Supplement plans.
Finding the plan
It is important to know ahead of time which plan you would like to take advantage of. That way, you will be able to maximize the coverage, manage your health care expenses effectively and avoid certain penalties in the long run.