Ever since your parents retired, you have spent a lot of time talking with them about various topics that pertain to older adults. From aging in place versus moving to a retirement community to the importance of staying physically active and spending time doing enjoyable hobbies, you enjoy discussing these issues with your mom and dad.
Lately, you have started to broach the subject of healthcare coverage with your parents. You know that this is also an important factor in living a healthy and happy life post-retirement, and so you are trying to learn all you can about their healthcare options in order to have an intelligent conversation about it.
To help prepare you for this important talk, please consider the following points:
Let’s Start with Medicare
The majority of senior healthcare is not paid for by the older adults themselves, but by government programs like Medicare, Medicaid and the Veterans Administration. Medicare is a federal health insurance program for people older than 65, who meet certain criteria. There are four parts of Medicare: Part A, which covers hospital stays; Part B for doctor’s visits; Part C, also known as a Medicare Advantage Plan, and Part D, which covers prescription drugs.
Medicaid 101
Medicaid is another program that your parents may qualify for, depending on their financial situation. It is a health insurance program that is run by individual states and is funded in part by the federal government. In order to qualify for Medicaid, seniors must have spent most of their assets; once a certain financial threshold has been reached, Medicaid will kick in and pay for most of the costs of long-term care, including skilled care services at home. If your parents do not have a lot of savings and are low on money, this might be an option for them.
Private Health Insurance and Medigap
When your parents were working, they probably received some type of health insurance coverage from their employers—since employer-sponsored policies usually end when a person retires, your mom and dad don’t have this type of plan anymore. While it is technically possible for older adults to purchase a private plan, they tend to be very expensive, in part because they take into account an applicant’s age and risk factors. Private insurance companies do sell a Medicare Supplemental Insurance called Medigap; these policies will cover expenses that Medicare does not. A Medigap policy can also help assist your parents in paying for deductibles, co-pays and coinsurance. Please note that a Medigap policy is not the same as a Medicare Advantage plan, also known as Part C of Medicare.
Medicare Advantage Plans
Medicare Advantage plans can be a solid option for many seniors. In addition to including the benefits of Medicare Parts A and B and sometimes D, these plans also cover many of the health care costs that regular Medicare does not. There are different types of Medicare Advantage plans. For instance, the Medicare Advantage PPO plans offer more choice and flexibility in terms of who your parents can see for care, whereas an HMO plan can cost a bit less but they must choose their physicians from a network of providers. In general, PPO plans don’t require a referral to see a specialist while HMO plans do. Medicare Advantage plans are provided by private, Medicare-approved insurance companies, so each plan can vary. For this reason, it’s important to shop around for your specific needs.
Research Plus Discussion Equals a Great Decision
It is admirable of you to want to help your parents select a great healthcare plan for their needs. By reading more about each option above and being aware that there are a number of choices, you and your mom and dad will be more knowledgeable about the options, which in turn will allow them to make the best decision.
Thank you,
Glenda, Charlie and David Cates
