Seniors' Medical Insurance
Seniors age 65 and older who are eligible for Social Security can usually rely on the federal Medicare system to handle much of their medical expenses. But Medicare doesn't pay for everything. Sometimes seniors have to look into private insurance plans to extend their coverage.
Some of the more popular choices for senior medical insurance include:
Medigap Insurance.
As the name implies, Medigap covers the gap in coverage that Medicare does not pay. It supplements Medicare coverage; depending on the type of policy, it can cover prescriptions, deductibles, and long-term hospital care. Some even pay for nursing home stays.
Since Medigap coverage is sold by many different companies, coverage and rates will vary. You need to choose carefully and compare the plans to make sure they are best for your situation. The Internet can help you with your research and compare plans.
Long-term Care Insurance
This insurance covers any long-term care you might need in places such as nursing homes and assisted living facilities. Living in a nursing home can cost about $40,000 per year, and Medicare only covers the first 100 days. Assisted living is not usually covered at all.
Any long-term stay in these facilities can quickly deplete any savings you may have. But with long-term care insurance, you don't have to worry about paying a lot of money, and you can have more freedom to choose the best facility without worrying about what you can afford. These plans also protect any remaining spouse from having to change their standard of living to pay for any long-term coverage.
Medicare is good, but it doesn't cover everything. By choosing wisely, you can help cover those gaps in coverage to make sure you receive the highest quality of care possible.
What Will It Cost?
Depending on how many prescriptions you need each year, your cost will vary. For example, if your total drug cost is $244 a year, you'll pay it all. If it's $2,238 you'll pay 25%, but if it's $4,000 you'll pay 25% up to the first $2,250 and 100% for the remaining $1,750. This is because there's a gap from $2,251 and $5,100 where you are responsible for all costs until "catastrophic coverage" kicks in and pays 95% beyond $5,100 (for that year), emphasizing the need for careful planning regarding Part D health coverage.
*You may be able to get extra help to pay for your prescription drug premiums and costs. To see if you qualify for getting extra help, call:
- 1-800-MEDICARE (1-800-633-4227). TTY/TDD users should call 1-877-486-2048, 24 hours a day/7 days a week;
OR
- The Social Security Administration at 1-800-772-1213 between 7 a.m. and 7 p.m., Monday through Friday. TTY/TDD users should call, 1-800-325-0778; or Your State Medicaid Office.
