Senior citizens over 65 have two basic healthcare insurance options: Medicare and managed care. Healthcare coverage is important at every age, no more so than after retirement. Here are some things to review about your health insurance status:
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Evaluate your work health benefits to see what, if any, health care coverage will be available to you as a retiree.
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Understand the details of your current health insurance coverage
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1. Health Care Options in Retirement
One of the top financial concerns for retirees is health care. Medical and health care costs keep going up exorbitantly every year including monthly health insurance premiums. Senior’s health care programs are a maze of coverage limitations, eligibility restrictions, and overlaps.
Besides federal health insurance programs, such as Medicaid and Medicare, some federal agencies like the Veteran's Administration provide benefits for their members and several states have varying health care programs with varied eligibility requirements. Also, some unions and trade organizations provide health care benefits for retirees. The qualifications vary for each healthcare insurance plan; the onus is upon you to qualify. Generally, however, the majority of retirees have two central health care options: Medicare and managed care.
2. Medicare
Medicare is the country’s biggest health insurance program, giving coverage to 40 million Americans. If your FICA tax contributions have been adequate for the program, you'll be Medicare eligible at 65, irrespective of whether you’re retired or not.
The most opportune time to apply for Medicare is during a seven-month period that begins three months before you turn 65. The Medicare program has two components: Part A and Part B.
Part A is often referred to as hospital insurance that helps pay for the cost of a hospital stay, in addition to some follow-up costs. Also, Part A covers some outpatient medical services, plus requisite medical equipment and supplies, physical therapy, and home health care.
Medicare Part B is medical insurance. This optional coverage pays doctor's bills for inpatient or outpatient medical treatment. If you choose Part B, your monthly health insurance premium is automatically deducted from your Social Security check.
However, there are certain out-of-pocket medical expenses that Medicare doesn’t cover, such as prescription drugs.
Furthermore, there are three options for Medicare Part B coverage: Original Medicare Plan, Medicare Managed Care Plan, and Medicare Private Fee-for-Service Plan. These programs are meant to provide Medicare recipients more choice in their health care coverage.
3. Managed Care
Managed healthcare are various health care plans that are offered through employers, state governments, unions, insurance companies, and private institutions. Managed healthcare plans fall into two main types: health maintenance organizations (HMOs) and preferred provider organizations (PPOs). For retired seniors the two most important factors to consider in managed care plans are local availability and costs, as plans costs and availability vary.
4. Medicaid
Medicaid is a program that provides medical assistance for low income or people with disabilities. Qualification criteria vary by state.
Health insurance for retirement requires you to do proper research to make sure you are well prepared for the final phase of your life. You should prepare well for
comprehensive health care insurance coverage and long-term care insurance so that your financial security is not jeopardized, and your retirement planning stays intact.