Senior Health Insurance Programs

Kyle Besser

In this age of expensive medications and the rising cost of Medicare, it is essential for retirees to enroll in senior health insurance programs to assist in covering these costs. While Medicare plays an important roll in achieving reasonable costs for long-term care and medication for seniors, it doesn't cover everything. Some medications are not covered at all by Medicare, and others are so expensive that the co-pay is still beyond the means of an individual on a fixed income.

In choosing a senior health insurance program to supplement Medicare coverage, there are several key components to consider.

Terms

Different senior health insurance programs cover various medicines and doctor visits at different amounts. For example, a newer medication that is not covered under Medicare may be paid at 80% by Plan A but only 50% by Plan B. Be sure to read through the policies carefully and compare coverage to your specific medical needs. Also check carefully the compatibility of the policy with other senior health insurance programs, specifically with Medicare. Make sure there are no clauses stating that the policy may not be used to supplement governmental health insurance programs since this is the reason you are considering the policy.

Premium

Of course, you don't want to pay more than you have to, but often the cheapest is not going to give you the coverage you need. Senior health insurance programs also tend to go up in price as you age, so you must check the frequency and amount of increase that you can expect. If Plan A is cheaper than Plan B at the start but raises the premium more often and in greater amounts, it will eventually be more expensive. It might be worthwhile to pay the extra cost in the beginning to achieve a better overall more even rate throughout the life of the plan.

Don't settle for the first plan you find. Shop around and compare the rates and coverage of similar senior health insurance programs to determine the best one for you. If two plans offer the exact same coverage and benefits, but one is slightly cheaper, it is obvious that you should choose the less expensive policy. However, it is rare to find no differences, and you must take care to be sure you are willing to give up certain benefits in exchange for a smaller price.