Senior Healthcare Insurance Options
According to the Kaiser Family Foundation, less than 1% of US seniors are truly uninsured, thanks to public medical insurance schemes. While this is a wonderful statistic, only your basic needs are covered by Medicare. That's why it's so important to explore all the extra options available!
The key to finding affordable senior insurance is to look for options that cover your needs without making you pay for unnecessary extras. Whether you only have a specific need to cover or need comprehensive senior healthcare insurance, you can find a service that fills that gap. Read more below to learn about the available insurance options.
Tailoring Your Insurance Coverage To Your Needs
Some of the most common age-related health issues are:
- Arthritis
- Heart disease
- Diabetes
- Mobility problems
- Alzheimer's or dementia
- Osteoporosis
All of these can have an impact on one's mobility and independence. They also tend to increase health risks generally, but each requires a different medical specialist and treatment.
The typical coverage cost without government help ranges between $800 and $1,200 monthly. However, you can save hundreds of dollars after age 65 with the right web of policies.
Another important consideration is whether you need help paying for assisted living or memory care. State and Federal senior insurance only provide this type of long-term coverage in limited scenarios.
Luckily, private long-term care insurance plans can cover assisted living expenses. These are useful to those who would like to protect their retirement investments from sudden extra living expenses.
Public Health Insurance Plans
A common strategy is to use publicly offered insurance to care for basic needs and then pay more for the extras you might need. Publicly organized health insurance plans are also the most affordable senior insurance options. The most common types of insurance in this category are:
- Original Medicare
- Medicare Advantage Plans
Medicare and the medicare advantage plans are suitable options as a starting point. These are available to everyone older than 65 and people with certain disabilities.
Medicare plans provide for necessary medical needs such as hospital, outpatient care, and prescription medication. Advantage plans may also extend their cover beyond these basics.
Medicare
Medicare on its own can be split into three parts: Medicare Parts A, B, and D. Medicare A and B (or original Medicare) cover hospital and medical costs, respectively, and are typically bundled together. Medicare Part D is an additional voluntary program that covers prescription medication.
Medicare alone only covers around 80% of each medical bill. Medicare also doesn't cover all products and procedures. For example, you may need a separate policy of gap coverage for eye care or dental.
However, if you have been paying the requisite taxes for about ten years, getting Medicare Part A for free is possible! This makes Medicare a great baseline insurance option to supplement with other policies.
Medicare Advantage Plans
Medicare Part C, or an Advantage plan, is a Medicare policy provided to the consumer by a private company. The private insurer provides a Medicare-style policy (hospital, outpatient, and medication coverage) on behalf of the Centers for Medicare & Medicaid Services (CMS).
Advantage plans blur the line between public and private coverage, bringing unique benefits. They often cover more services than original Medicare and usually have lower out-of-pocket costs.
However, Advantage plans cannot be combined with Medigap policies. Many people use medical insurance savings to offset this extra cost. Alternatively, you could try to pad your general savings or investment account to give you that extra buffer.
Humana offers one of the top-rated Medicare Advantage policies in the US. Their service gets excellent reviews, they keep costs low, and their coverage is available nationwide.
Private Senior Healthcare Insurance
Private senior healthcare insurance can be a better alternative for some people. Private insurance has excellent benefits, namely flexibility and access to wider networks. Moreover, private insurance may be your only option if you don't qualify for Medicare.
Medigap Cover
The Medicare section above mentioned that Medicare only covers most of the bill. A Medigap insurance policy is a private policy you can use to cover the rest of that bill. Almost everyone with Medicare should take a Medigap policy as well.
Private Healthcare Insurance
If you're retiring or at least making retirement plans before the age of 65, then you'll need a non-Medicare option. Private healthcare insurance is more expensive than public variants, but it also comes with unique benefits, including:
- Easier access due to lower eligibility standards
- Access to much wider networks of healthcare providers
- Coverage for more healthcare products
- More policy flexibility
With private healthcare, you also get more financing options. You can choose higher monthly premiums to lower or eliminate deductibles and copayments. You can also go the other way and pay lower premiums, accepting a higher deductible and copayment if that works better for you.
Short-Term Care Insurance
Short-term insurance is popular among two types of people:
- Those who need quicker access to medical help
- Those looking for temporary coverage to bridge the gap between two permanent policies
A person can find themselves occupying both of these categories after retiring. The typical scenario is when an employer covers healthcare insurance, and you retire before becoming eligible for Medicare. A short-term policy gives you interim coverage and protects you from potential coverage gap penalties.
Long-Term Care Insurance
Long-term care insurance is a policy you can use to pay towards (or for) assisted living. These services require round-the-clock assistance and supervision, driving up the costs.
With a long-term policy, you can protect your retirement investment from being drained by these costs. This type of insurance can also help those who suddenly need assisted living but never planned for it.
Planning for a Secure Future
Senior healthcare insurance may seem like an additional expense, but it's the best way to protect your retirement finances. There are many affordable options available exclusively to retirees.
When comparing insurance plans, ensure that you remain mindful of the types of coverage you need. This will keep you safe from sudden expenses.
At Clay Gardens Place Assisted Living, we're dedicated to providing our residents with the best and most affordable living experience. With our living options, we let you choose the lifestyle that best fits your needs. Contact us today to learn more about our community.