Gradually as you are approaching the golden age of 65 you must have started realizing the gift that this age gives to your health. There are health problems and Doctor’s prescription are not something new! Till date you must have been comfortable with the private insurance provide by your work place but now when you are about to retire what about these health expense, especially when they are going to increase?
Medicare- your health insurance after 65
Medicare is a federal program that was started in 1965 and it mainly aims in providing financial security for those who are undergoing medical treatment after attaining the age of 65. For many it may seem very complex with its different parts and terminologies. Part A and Part B are the integral part of Medicare and they come in automatically once you get enrolled. Part A is for inpatient coverage and Part B is for outpatient coverage.
Apart from this there are other plans under Medicare like the Medicare Advantage plan and Medicare supplement plans that fills in the gap where Original Medicare do not take care. There are many expenses that are not covered under Part A or Part B and in order to meet those expenses you need to take Medicare Supplement Plans. These plans are offered by private insurance companies but they are governed by the Federal government.
Medicare Supplement Plans – supports your health expenses
If you are ill for a short period then your original Medicare will be enough to cover your medical bills, but by any chance when it increases then you have to pay the extra costs out of your pocket. Like, if you are in hospital for more than 80 days then Part A will cover a part of the cost during the stay. Similarly, Part B will cover only 80% of the medical services you take while you are ill. The rest of the costs must be borne by you as copayment or coinsurance.
If you have spouse who is still working and gets coverage on the other expenses then it is fine you will not need Medigap. For others a Medigap plan is essential as it covers those expenses that are not covered by the Part A and part B of original Medicare. There are 10 different types of plans available under this plan and you need to be careful while choosing one for your need.