Sufficient health care coverage will help protect retirement income.
In the United States, the No. 1 health insurance provider for senior citizens is the federal Medicare program designed for individuals 65 years of age or older. The Medicare program is not the only option available. A number of private insurers offer standalone plans, as well as supplemental coverage to fill the gaps of what Medicare may not fully provide. Options for senior citizens can be limited by the necessity of living on a fixed income. Finding the right coverage package becomes crucial to worry-free retirement.
Medicare Overview
The Medicare insurance program consists of four distinct parts. Part A, hospital insurance, charges no fees for coverage and enrollees in the Social Security program are automatically eligible when reaching age 65. Medicare Part B, medical insurance, is also part of the standard Medicare package, but is not automatically free coverage for all senior citizens. Part C, also known as Medicare Advantage, provides for coverage that may be limited under parts A and B. Medicare Part D, prescription drug coverage, helps to defray the cost of medications.
Medigap Plans
Due to the limitations on what types and how much coverage senior citizens may have under a standard Medicare policy, the insurance industry offers policies to fill in the "gaps." Therefore, many Medicare Supplemental policies are said to be Medigap insurance. This type of health insurance policy for seniors is designed to provide specific benefits Medicare lacks, for example, extra days of hospitalization coverage when Medicare provisions have been exhausted.
Long-term Care Insurance
Senior citizens concerned with the possibility of confronting a chronic illness or the need for nursing home care may wish to purchase long-term care insurance. If written as a standalone policy specifically targeted at covering the care for long-term illnesses which require home health care or a stay in a skilled nursing facility, senior citizens interested in this type of health care insurance should closely examine existing coverage such as Medigap policies and any other supplemental insurance to be certain purchasing long-term care insurance would not be duplication.
Making Choices
Insurance experts advise senior citizens to proceed with caution when choosing health insurance plans from private companies. Review contracts closely before signing and pay by check. If an elderly consumer feels uncomfortable making a decision on purchasing health care insurance, a relative or friend may agree to be present. Look to reputable companies with a long stable track record of providing health insurance. The Social Security Administration and the official department of insurance in the senior citizen's home state can provide assistance in determining the validity and need for specific health care insurance policies.
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