1 in 4 older Americans have little saved to cover medical expenses
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Retirement savers can be hit hard by unplanned medical bills.
According to the aforementioned survey, only 33% have more than $6,000 saved for medical bills. However, 27% of Americans over 65 have less that $500. survey from MedicareGuide.comIt is. Nearly half (46%) in that age group — who generally rely on Medicare for coverage — are very or somewhat concerned that a major health situation in their household could lead to medical debt or bankruptcy.
They would need to pay the severe illness treatment costs. Credit cards would be a popular option for more than one fifth (22%) of those surveyed. An additional 15% would access retirement savings while the remaining 13% would borrow on savings. This survey was done among 1,176 adults 65 years and over in the United States.
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There may be lower-cost coverage for those who are older than you, if they have difficulty paying for their health insurance. Open enrollment for Medicare is now through December 7, so it’s a great time to learn.
This annual window allows you to add or change coverage for an Advantage Plan (Medicare, Part C), and/or prescription drugs. (Part D). Changes to your coverage can be made Jan. 1, and you have options to add, remove, or modify them. Your 2021 plan would generally continue through 2022 if you do not take action.
Jeff Smedsrud (cofounder of MedicareGuide), stated that seniors who are cash-strapped may qualify for policies with better coverage and savings than the current one. HealthCare.com
For beneficiaries with original Medicare only — Part A (hospital coverage) and Part B (outpatient care) — it may be worthwhile considering an Advantage Plan. Private insurance companies offer these plans and provide Parts A, B and C coverage.
The out-of pocket maximum for basic Medicare is not set by Advantage Plans. These plans often include prescription drug coverage as well as additional services like hearing and vision.
The average monthly premium for Advantage Plans will be $19 next year, down from $21.22 in 2021, according to the Centers for Medicare & Medicaid Services. Some plans offer zero premiums, but you would be responsible to pay your Part B premium. You should make sure your doctors, hospitals and other providers are covered. Otherwise you may find yourself in an uninsured situation.
You should also ensure that your prescription drugs will be covered. This applies whether you have an Advantage Plan, or are a Part D prescription drug policy. An average premium of $33 per month for Part D coverage in 2022 will increase from $31.47 the previous year. There may be other options. help paying for prescription drugsIf your income is low, you might consider a tax deduction.
ADepending on your income you might be eligible to receive a Medicare Savings ProgramThis program, administered by the state Medicaid office and available generally to beneficiaries of low income, is known as SSI.
You can choose from several programs, with each one based at least partially on your income. There are also limits to your resources, such as savings.
You may be eligible for Part B, depending on your program. Other out-of-pocket expenses such as deductibles and coinsurance could also be paid.