By Tucker Thompson, CSA
Age is usually not a topic we like to discuss as we grow older. When it comes to choosing between the cost and coverage of Medicare, or Major Medical, there is a decisive view. The current cost of Major Medical health coverage has skyrocketed over the past few years. The cost for Affordable Healthcare in Collin County for someone 64, non-tobacco, $5,000 deductible, 80/20, $515 per month: up to $0 deductible, 80/20, $1,256 per month, both have an out of pocket maximum of $6,850 per person.
The cost of Medicare has increased but nothing like the cost for people under the age of 65. Preventive care has decreased the need for medical care and increased longevity to the current population. People are living longer and are more active due to the improvement of medical care and medical procedures used today. Pharmaceutical breakthroughs to heal and control illness and disease have also contributed to the well being of people. These are some of the reasons medical claims have seen a decrease in the past years in Medicare.
The cost of Medicare Part A is usually $0 per month with a $1,288 deductible when you check into a hospital. Medicare Part B cost for most people turning 65 in 2016 is $121.80 per month plus an annual $166 deductible that covers doctor’s visits, lab work, x-ray, medical equipment, physical and speech therapy, ambulance, outpatient medical, and psychiatric care. After the Part B deductible, Medicare generally pays 80% of the Medicare approved charge, leaving you with a 20% payment.
Medicare Advantage Plans; HMO, PPO, and PFFS, usually have deductibles, co-payments, out-of-pocket maximums up to $10,000, plan’s network for doctors, providers, labs, and hospitals. Not all doctors or hospitals accept these plans except in emergency care.
Medicare Supplements Insurance policies are also called Medigap polices. They cover the Medicare approved care cost that original Medicare doesn’t cover like copayments, coinsurance, and deductibles. They have no network or referral needed for doctors or hospitals unlike Medicare Advantage Plans. The cost for a Medicare Supplement G Plan in zip code 750 for a female 65, non-tobacco, Part B deductible $166 then 100% coverage, $126.63 to $143 per month.
Tucker Thompson, CSA, has worked in the insurance field for over 24 years in Life Insurance, Long-Term Care, Medicare Supplements, Medicare Advantage Plans, and Prescription Drug Plans.