Health Insurance for Seniors
Health care for those in retirement
Americans over 65 have two basic choices of health care: Medicare and managed care. This article envisages the options available with each of them, their costs and coverage.
Issue
1. Options health care in retirement
2. Medicare
3. Managed care
4. Medicaid
1. Options health care in retirement
Ask a group of seniors what their main concern regarding retirement and it is quite possible that you answer "health care". Because the costs of health care are through the roof and cover programs such as Medicare is limited, many retirees face payments of insurance premiums monthly rather difficult to fill, or worse, no coverage in the absolute.
Health care for the elderly can be a maze of programs, eligibility restrictions, limits of coverage, and partial matches in insurance, with terms that vary widely from one program to another and from one plan to another.
In addition to federal programs like Medicare and Medicaid, some agencies like the Veterans Administration offers specific benefits to members and many states have different programs created for themselves with different eligibility requirements. Also unions and business organizations can provide care benefits health.
Whether you qualify for some of them depend on their individual circumstances. However, in general, most retirees has two main options of health care: Medicare and managed care.
2. Medicare
Medicare is the insurance program health of the nation's largest and covers 40 million Americans. Provided that they have contributed to the extent sufficient to program (through taxes FIC), you will be eligible for Medicare when he turns 65 years of age, regardless of who is retired or not.
The best time to apply for Medicare benefits is the first opportunity to do so: the seven-month period that begins three months before his birthday number 65. The program is divided into two parts: Part A and Part B.
Part A is called the hospital and insurance covers most of the costs of a hospital stay, as well as some costs of monitoring after leaving the hospital. Part A pays other outpatient medical services, including equipment and supplies that are necessary from a medical point of view, health care at home and physical therapy. In most circumstances, you do not have to pay premium Part A.
Part B is for the health insurance. This optional coverage has been created to help pay the bills of medical treatment by either inside or outside the hospital. It also covers many other medical expenses incurred in which you when you are not hospitalized, as the cost of tests and medical equipment needed.
If you choose Part B, the monthly premium is automatically reduced his Social Security check. But there are some extra expenses for which Medicare does not pay, including some prescription medications, although a proposal by the government of President Bush to incorporate a benefit of prescription medicines in this program is currently being evaluated in Congress.
You now have three options for coverage of Medicare Part B: Original Medicare Plan, a Plan managed care Medicare (like an HMO), and a Plan Private Service Charges Medicare.
Each of these programs has its advantages and disadvantages, and some might not be available in certain geographic areas. With the Original Medicare Plan you pay your monthly premium for Part B and then pays additional service goes according to using.
The plan managed care plan and Medicare Private Fee Service is offered through private insurance companies. These programs were initiated to provide Medicare beneficiaries more choices in their coverage.
With these plans you must continue paying their Part B premiums and might also have to pay an additional premium to the insurance company and any deductible or co-insurance payments. However, the services you receive could be more comprehensive than those offered through the Original Medicare Plan.
If you choose the Original Medicare plan, could also be interested in obtaining Medicare Supplement Insurance, insurance or "Medigap". Medigap The term derives from the notion that these insurance policies will cover the gaps ( 'gaps' in English) of payments Medicare.
Medigap does not cover all the gaps - but it helps. Before purchasing a Medigap insurance policy, must not only take into account the services covered but also the amount of benefits and the monthly cost of the policy.
You should also pay attention to the amount to which premiums could rise in future years. In addition, it would be a good idea to compare Medigap program with managed care Medicare program and Medicare Service Charges, if available in your area.
3. Managed care
The "managed care" refers to a variety of plans for health care that are offered through employers, unions, insurance companies, state governments and private institutions.
The managed care plans generally fall into two main categories: maintenance organizations health care (HMOs) and preferred provider organizations (PPOs). The HMOs are generally less expensive than PPOs, but generally more restrictive in their choice of doctors and services.
For retirees, the decision of what managed care plan must often choose is limited to two factors: the local availability and cost. Depending on where you live, your options could be limited to a handful of organizations or plans.
Both the HMOs and PPOs, have restrictions regarding the coverage and participation from the doctor, so it's worth finding out what's available in your area. The costs of the plan also vary widely. Speaking in a general sense, the annual costs for those enrolled in Medicare could vary from less than $ 100 per month to more than $ 500 per month for one person, depending on the coverage, use and location.
Some companies and unions provide health care as a retirement benefit for their employees and members, or could offer the option of extending its coverage of health care to retired employees to price group. However, this benefit is offered each time by a smaller amount of companies.
For example, a survey by Kaiser Family Foundation and Hewitt Associates revealed that 43% of companies with employees from 1000 to 4999 now offer benefits health care for their retired employees. However, between 2004 and 2005, 12 % Of employers eliminated all the benefits of subsidized health care for future retirees.
However, if you plan to provide for their health care during their retirement, here are some factors to be taken into consideration:
• Be aware that most retirees need some form of supplemental coverage to pay for the costs of health care not covered by Medicare.
• You must find out about coverage and availability well before retirement.
• Need to talk to your employer to see if it provides health insurance for retirement and assess their ability to continue to provide for their retirement.
• Be prepared for health problems during his retirement. Health problems are part of aging. Do not wait until they emerge to meet the costs.
4. Medicaid
Medicaid is a program that pays for medical care for those with low income or disability. The eligibility criteria may vary from one state to another but generally you must have low incomes and few financial resources to be approved. For example, in New York State limit monthly income for the household of one person in the 2006 was only $ 692, and financial resources could not exceed the amount of $ 4150.
Source: State Department of Health of New York.
Résumé
• As long as you have done enough so far to the program, will be eligible for Medicare when he turns 65 years regardless of who is retired or not.
• Medicare is divided into two parts: Part A is called the hospital and insurance covers most of the costs of a hospital stay, and Part B is medical insurance and provides certain treatments outside the hospital.
• The Medicare Supplemental Insurance, or "Medigap", covers some of the gaps ( 'gaps' in English) from Medicare payments.
• Managed Care refers to a variety of plans of care being offered through employers, unions, insurance companies and state governments and private institutions.
• The decision of which plan to choose managed care is often limited to two factors: the local availability and cost. Depending on where you live, your options may be limited to a handful of organizations or plans.
Checklist
• Begin to investigate their options for supplemental health insurance before retiring.
• If the medical bills are a problem now, or possibly come to soon become a problem, consider delaying retirement in order to maintain insurance coverage of their work.
• Determine which type of managed care is most appropriate for their situation: an organization of health maintenance (HMO) or an organization of a preferred provider (PPO).
• Make your plans early in order to be prepared to apply for Medicare about seven months before reaching 65 years of age.
Before we begin
• Find out the benefits of the company where she works to determine what, if any, health insurance coverage will be available for you when you retire.
• Read the fine print in your current document insurance (health, long-term care, disability, etc.)..
• Ask people who are already retired to share their perspectives on the application and use of Medicare coverage.
• If you think you have to take care of others during your retirement, consider buying (or increase) the coverage of long-term care.
