As you get older, healthcare costs can turn into a debilitating expense having a major impact on our savings. A majority of these costs, however, can now be covered by purchasing plans by private insurance and government programs.
Here, we discuss the various healthcare options that are available for seniors:
Medicare
Medicare is a national health insurance program by the federal government, specifically for seniors, aged 65 and older. It covers part of the medical costs depending on the policy. It involves Part A, B, C, and D.
- Part A covers inpatient care such as hospital admission, nursing care, hospice care, and some aspects of home health care.
- Part B covers outpatient care such as doctor’s visits and diagnostics tests.
- Part C is provided by approved private health insurance companies and covers costs from Part A and Part B with additional dental, vision, or hearing coverage, depending on the plan.
- Part D involves coverage for prescription drugs.
Medicaid
Medicaid is provided by individual states and covers low-income individuals including low-income seniors. To be eligible, one must have exhausted most of their available assets. It can be used to pay for long-term inpatient health care. Depending on the state, it can also work in synergy with Medicare with seniors being ‘dual-eligible’ for both Medicaid and Medicare.
Private Health Insurance Plans
Private Health Insurance Plans tend to be expensive, and seniors can even be denied coverage or have to pay exorbitant premiums if they already have serious medical conditions. However, these can be used to cover services not covered by Medicare or Medicaid.
Medigap
Medigap is supplemental health insurance sold by private health insurance companies for those that have purchased Medicare Part A and B. It helps cover out-of-pocket expenses including deductibles, copayments, and coinsurance payments that are not covered under Medicare.
Veteran’s Administration (VA) Health Benefits:
The VA system offers multiple programs that provide health insurance coverage for senior veterans fulfilling specific criteria that have been honorably discharged. Additionally, there are programs and benefits for elderly spouses or widows of veterans that meet the criteria.
Other Options
Additional options include ‘The Program of All-Inclusive Care for the Elderly’, which promotes community care of the elderly and ‘The Partnership for Long-Term Care’ which combines private and Medicaid coverage, focusing on long term care. Its plans and coverage tend to vary from state to state.
