As soon as you reach the age of 65 and retire from an active life, you will most likely want to look for a good Senior health insurance policy. Attaining a Senior health insurance policy is very essential, but can be a little bit tricky at this age. As you age, you become more prone to diseases. Chances are high that you have already suffered from some kind of disease. Therefore, you have a greater chance of being rejected for health insurance. Even if the health insurance company accepts your application, it will likely ask you to pay a very high premium, which might not be a very wise choice to make. So do you have any alternatives to these privately owned health insurance plans? Definitely.
Here are some Senior health insurance options that you should definitely consider for affordability and efficiency.
Medicare- This is the first resort for many of Seniors. A Medicare policy provides you different kinds of coverage. Part A of Medicare will handle your hospital costs or in-patient care. Part B of Medicare handles your doctor visits or out-patient care. Both these parts together are called Original Medicare and is provided by the federal government. Part D handles coverage for prescription drugs. Part C is known as the Medicare Advantage Plan. This is a more comprehensive plan that covers everything under Part A, B and D. Moreover, it also covers certain other medical conditions like vision care, hearing care, nursing and much more.
With Medicare being provided to every one of retirement age, you will get the best basic coverage. Though Medicare is not a very comprehensive coverage policy in itself, you definitely get a good amount of coverage. Therefore, you shouldn’t avoid Medicare if you are eligible for it. It is true that you would have to pay a lot when it comes to co-payments and deductibles, but still Medicare is recommended everyone as it combines with Medicare Supplemental policies to give you some solid coverage.
There is also a Medicare SELECT policy available to you. The major difference here is that you are able to choose your service provider and take his services, as long as he wishes to stay with Medicare. If you go to any of the out of network service providers, your Medicare SELECT company will not pay anything. However, this is a Medicare supplement policy only and it generally costs less than normal.
Medigap Policies- Medigap policies are a kind of Medicare Supplement policy provided by private insurance companies to individuals. The main purpose of these policies is to fill the gaps between your real healthcare bills and your Medicare coverage. Many times, a Medicare policy is not able to pay for all the expenses that one may have to incur in case they ever have to visit a hospital. With all the co-payments, coinsurance costs and the deductibles being paid, you would likely be left with nothing. However, the worst part is that the Medicare policy would also run out soon and if you stay in the hospital for a couple more days, then all your savings and Medicare coverage would vanish into thin air.
This is the time when having a Medigap policy would help you out. Your policy will fill this huge gap between your Medicare coverage and the real cost of healthcare. You pay monthly premiums, just like any other insurance policy. In such a case, you continue to be a part of the Medigap coverage. In the unfortunate event that you have to visit a hospital and your Medicare coverage runs out, your Medigap policy will help you out. You may have to make a small co-payment here as well, but the major chunk of the bills will be handled by your Medigap insurance policies. Therefore, if we look at it from a purely financial point of view, your total coinsurance, deductibles and copayments for Medicare and Medigap combined would only be a fraction of what these policies are really paying to you.
There are about 10 Medigap policies that you can make use of. They range from Plan A to Plan N. In general, Medigap Plan F provides you the most comprehensive coverage. However, it is a very high deductible plan. Plan M and Plan N that are designed to make the premium payments lower than usual. This helps in making sure that you get ample of choice in the Medigap policies and you are able to make a wise decision for yourself.