Senior Health Insurance Program

2014 Medicare and Medigap Updates

Senior Health Insurance Program

One of the most important facets of social services today is the Medicare health insurance program. According to the latest data compiled for Medicare, more than 48 million Americans depend on this senior health insurance program to pay for almost all of their everyday medical expenses. Without Medicare, many Americans would not be adequately prepared for their medical needs in their retirement years.

The idea behind the senior health insurance program is very simple: people who are currently fit enough to work set aside a portion of their monthly earnings for social services and insurance. This contribution goes into a fund that is used by the government to pay for the medical expenses of retirees as defined by Original and Advanced Medicare. When a regular social services contributor reaches the age of 65, they become automatically eligible for the senior health insurance program.

Known as Medicare, the senior health insurance program covers two important facets at its most basic. Medicare Part A takes care of hospitalization insurance which takes care of the fees related to hospital services including in-patient care. Medicare Part B, on the other hand, shoulders medical fees such as doctor consultation fees. This becomes active at the first day of the month that a contributor turns 65 and typically does not require any subsequent monthly payments once active.

According to data by the Department of Health and Human Services, members of the senior health insurance program get benefits of up to $12,000 per year according to their lifetime contributions. From this, most members recoup their contributions and actually get more over the lifetime of their policy. Data suggests that members get up to $100,000 more in benefits than their base contributions from the time that they are still working.

Consequently, the benefits of the senior health insurance program cannot be overstated. First, it allows many seniors to use their pension for living needs without having to touch it for medical purposes. The system also makes it convenient for seniors to visit medical facilities and hospitals and get their checkup knowing that they are adequately covered for routine medical procedures. This ensures that seniors enjoy their living arrangements, reap the fruits of their years in labor, and are medically taken cared of without worry.

Beyond basic Medicare, there are also programs that offer supplemental health insurance coverage. These are known as Medigap policies and at their most basic, they offer coinsurance payments for procedures beyond standard Medicare. Of course, getting a Medigap policy requires monthly premiums, but the paymenst are very reasonable and regulated by the government. These policies normally range from $125-$200 depending on the exact policy and gives retirees even more peace of mind knowing there will be virtually no out of pocket expenses even in a long term illness.

The senior health insurance program is indeed a boon for most of the retired and elderly population. It is expected to continue being a significant part of the lives of many, offering free or economical medical services that give them the chance to enjoy their retirement years without having to worry about losing their savings. It’s a benefit that is truly “life-giving” in many senses of the word, and one that is put in place as a testament to the commitment of taking care of the elderly once they move past their working years.