Medicare sets itself apart from other health insurance policies because of its inclusiveness and affordability. Private health insurance may work very well for some, but if you are turning 65, Medicare may be the better option. This will be shown by comparing factors that would normally result in higher costs for traditional private insurance.
Impact of Age
Medicare and other health insurance policies handle older applicants differently. Here is an example of how these insurance policies would handle a 65-year-old applicant.
For Medicare, 65 is the youngest possible age a person can get coverage, aside from those receiving disability benefits for a minimum of 24 months. While late fees can apply to someone who waits past age 65, that does not have to do with age. Late enrollment penalties are assigned according to how long a person has waited since he or she had the first opportunity to join. Medicare enrollment can be delayed without penalty for someone getting employer health insurance.
Private health insurance handles this much differently. Someone joining at this age can expect premiums triple the amount that a younger applicant would pay. Other policies may even reject someone just for being 65.
Medical Conditions and Coverage Denial
You are much more likely to be rejected if you have a serious condition. Insurance companies do this because they have to receive a certain amount in premium payments to remain active and profitable.
The biggest reason why Medicare is different here is that it’s federally funded. A percentage of every U.S. worker’s paycheck goes toward Medicare.
Gender
For other health insurance, women tend to pay lower premiums because they have a longer life expectancy. However, it’s different for men, as they have a lower life expectancy.
This isn’t the case for Medicare. Regardless of your gender, your coverage and payments are the same.
Unpredictable Premiums
Private health insurance companies can charge whatever they feel is necessary. The premium costs aren’t the same across the board. Two companies can provide the same benefits and have the same limitations, yet one could be considerably more expensive than the other.
Medicare, on the other hand, has highly predictable premiums because its costs are standardized. However, this is not the case for Medicare plans such as Part C, Part D, or Medicare Supplements that are offered by private insurers. The costs for these plans will typically vary among insurers and where you are located.
But for any person who has earned 40 tax credits, typically accrued over the course of 10 years from working in the U.S., can get:
- Medicare Part A for $0 per month
- Medicare Part B for an average of $148.50 per month (however, this amount typically depends on your income – if you have a higher income, you may have a higher premium)
Questions?
At Cornerstone Senior Advisors, we sort through the details of health insurance on a daily basis, helping people like you find the best policy that suits their needs. Don’t go without health insurance. Find out more by calling us today at 316-260-3331.