subject: Health Insurance For Seniors [print this page] As baby boomers age into their retirement and senior years, the health insurance industry is bracing for a deluge of claims. With older age associated with increasing health problems and risks, this comes as no surprise. Though the government as well as private insurance companies should have planned for this long in advance (anyone with knowledge of health care knew this was coming), the fact is that nothing has been done about it.
Currently, only 13% of Americans are considered of age to be included in the senior population, yet this small percentage gobbles up more than one-third of the nation's health care services. This includes supplemental insurance and out-of-pocket costs. Experts estimate that overall spending in our country will increase 8% annually for the foreseeable future.
Such an overall increase means that both private and public health insurance companies will be receiving more claims. Since more claims means more money spent, this equates to an overall rate increase in health insurance premiums across the board, regardless of age or general health.
With these expected premium increases, citizens are calling on the government, both state and federal, to intervene. Individuals with pre-existing conditions are already subject to absurd monthly premiums, if they are able to obtain any health coverage at all. Many are asking that the need for supplemental Medicare insurance be done away with, reducing private health insurance premiums.
However, this plan of action leaves the burden of financing such health care on the federal government, which we already know is in the whole more than we can even wrap our heads around.
Another approach to the problem is offering health insurance that links health status with cost sharing. Research indicates that most seniors would reduce their medical consumption if cost sharing was implemented or increased, as they are often not even aware of how much their health care really is costing.
Studies also show that when a co-pay goes up for a particular prescription, seniors reduce or even eliminate their dependency on a particular medication, also reducing the amount paid by insurers. However, this finding may simply be attributed to the fact that seniors are on a fixed income and cannot afford the price increase, and may actually result in additional medical problems due to a decreased level of care.
Some private health insurance plans offered to seniors are referred to as Medigap policies, designed to cover that which Medicare does not otherwise cover. With the gaps in Medicare coverage, it is necessary for seniors to purchase this type of coverage to ensure that they are not left with thousands of dollars in medical bills for services that are not covered by Medicare.
It is extremely important to understand exactly what is and is not covered by all health insurers, whether it be a private company, Medicare, Medicaid, or an alternate state-run program. Often a family member will be glad to assist in comparing plans and identifying gaps in coverage that need to be addressed, ensuring your financial future.
by: Casey Trillbar
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