Health Insurance Options for the Elderly

As people get older, the need for medical care typically increases, leading to a greater need for reliable health insurance. For people age 65 and over, Medicare is likely the most viable health insurance option available to them.

Identification

• Medicare is a health insurance program provided by the federal government for people age 65 and older. Medicare consists of Part A, which covers major events like hospitalization; Part B, which covers doctor visits; Part C, which can be purchased in place of Parts A and B from private insurance companies; and Part D, which offers prescription drug coverage.

Considerations

• Medicare Parts A and B include out-of-pocket expenses like deductibles and copayments. To help cover some of the costs, individuals may consider purchasing a Medicare Supplement policy, also known as Medigap, from a private insurance company.

Other Options

• In some cases, employees may be able to continue medical coverage offered by their employer upon retirement. In these situations, they may elect to forgo Medicare, but can still enroll if their employer coverage terminates. Individuals can also purchase prescription drug coverage from a private insurer in lieu of Medicare Part D.