Health insurance is something we can all benefit from, and as we get older it is even more important. Getting the right plan can be confusing as health insurance providers will all offer different things.
When you know what to expect it will be easier to decide what type of coverage you need. Before you get started you should think about whether or not you want to see your preferred doctor, and if dental, vision, hearing, and prescription drug coverage is a priority.
To make this process easier, here is everything you should know about health insurance in 2020:
Original Medicare
U.S. citizens who are are eligible for Social Security can apply for Medicare once they turn 65. It is also available for those with a permanent disability, ALS, or ESRD. This is health insurance offered by the government and reduces the cost of hospital stays, doctor visits, and other essential health services. Often referred to as Part A and Part B, Original Medicare is a good starting point but for many people it isn't enough.
You can boost Original Medicare with a plan from a Medicare-approved healthcare insurance provider. These are called Medicare Advantage (or Part C) plans.
Medicare Advantage Plans
A Medicare Advantage plan will give you more options and access to a greater range of services. You will usually get everything that comes with Original Medicare, plus additional benefits such as dental, vision, and hearing services.
Prescription drug coverage, or Part D, is not included with Medicare Part A and Part B. If you don't want to purchase Part D separately, your Medicare Advantage plan could cover this. A Medicare-approved health insurance company such as Anthem will give you one convenient bill, with lower copays and premiums.
HMOs
Medicare Advantage plans are either HMOs or PPOs. HMO stands for Health Maintenance Organization. When you have an HMO plan you will be given access to a range of doctors and healthcare services. If you use this network the fees will be lower, and your monthly premiums could be as little as $0.
You will need to choose a primary physician for your healthcare, and they will make referrals to specialists as required.
PPOs
The second Medicare Advantage option is PPO, which stands for Preferred Provider Organization. This option will give you more choices. You will have the flexibility to see any doctors or specialists without an initial referral from your primary physician.
If you have a doctor who is outside of the network you can still see him or her, but there will usually be a higher copayment.
Comparing Health Insurance Plans
Before deciding on a health insurance plan you should think about what you will need both now and in the future. Original Medicare will cover the basics, but if you want prescription medication coverage, dental, vision, and hearing services you will likely benefit from a Medicare Advantage plan. This will give you one simple bill and reduced fees to take the stress out of managing your health.
Look for a trusted health insurance provider with options that are customized to your unique circumstances. Think about whether you are happy to use services from their trusted network, or if you would prefer to choose your own doctor.
When you are researching health insurance in 2020, don't be afraid to ask questions to ensure you get the right plan for your needs and qualify for flex card.