(FinancialHealth.net) – As we age, we are all concerned with our health and what health problems may arise in the future. This includes worries about having the ability to financially survive a major medical issue. Granted, once retirement age comes, Medicare typically follows — but is this really enough? Should you include a supplemental policy?
Let’s take a look at the options.
Medicare Part A and B Explained
Medicare Part A has no monthly premium and primarily covers hospital care. But it does have a hefty copay for overnight stays and a deductible that exceeds $1,000.
Medicare Part B has a premium and covers preventative maintenance, research, approved medical equipment, ambulance rides and a second opinion before surgery.
Neither plan guarantees 100% coverage of medical bills, especially if you have an extended hospital stay. Also, these Medicare plans don’t cover essentials, such as eye exams, glasses, hearing aid exams, most dental procedures, or even routine foot care. These are all treatments frequently required by adults over 65.
Advanced Protection Options
Medigap
Look to Medicare Supplemental, also known as Medigap. Medigap plans help cover some of the costs like deductibles, copayments, some treatments outside the U.S. and hospital stays (beyond what Medicare will pay). However, they’ll only cover a limited amount of time (100 days for rehab in a nursing home and no time at all in a nursing home for custodial care). Medigap does not cover prescriptions, vision, dental, long-term care or hearing aids.
Medigap is sold by private insurance companies and comes with its own monthly payment. You must have Medicare part A and B to qualify for Medigap, but you cannot be on Medigap and Medicare Advantage at the same time. If you are on Medicare Advantage, you can apply for Medigap. Just be sure that your Medicare Advantage coverage expires before the Medigap kicks in.
Medicaid
Consider applying for Medicaid. This is a free or low cost health coverage offered to low-income people, families, the elderly, and those with disabilities. It is based on income but even if you do not qualify, you can apply for state-based assistance. Plus, if you do qualify, whatever Medicare Parts A & B do not cover is almost always covered by Medicaid.
Once your health insurance concerns are covered, it’s time to sit back and enjoy those golden years. You’ve earned them!
Here’s to Your Financial Health!
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