How Does Medicare Compare to Private Insurance?
Which is Better & Can You Get Both?
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A licensed insurance agent from our team will contact you to discuss your Medicare options.
Medicare Compare & Private Insurance Plans
Many people are not sure which type of health insurance they should get when they reach 65. Unfortunately, the road doesn’t get any easier as a person ages because plans can change drastically from year to year. Some find themselves in a dilemma on what to choose between Medicare or private insurance. And, if there is any overlap of the two that should be considered. It is essential to know the differences between these two types of plans before making a decision on healthcare coverage.
What is Medicare?
Medicare refers to a health insurance program for people at least 65 years old, certain younger people with disabilities and other conditions. Medicare covers hospital stays, visits to doctors and specialists’ offices, lab services such as X-rays and MRI tests, outpatient surgery, including cataract removal or hip replacement procedures.
The following are advantages of the Medicare plan:
- Low monthly premiums, depending on income level and status of health insurance
- Coverage for medical emergencies anywhere in the world
- Medicare plan covers 100% of costs for specific preventive care such as flu shots and cancer screenings
- It offers free or low-cost services like vision exams, hearing tests, diabetes management programs, kidney dialysis & blood transfusions
- Prescription drugs are covered by Medicare Part D (prescriptions) Plan at a discounted rate after enrollee meets their yearly deductible. Here’s how to avoid paying the Part D penalty.
What is a Private Insurance Plan?
Private insurance refers to health insurance that the government does not provide. It can be supplied through an employer or purchased directly from a private insurer. Private insurers do not pay for all medical expenses, but they cover many, including doctor visits and hospitalization.
They also offer plans with different levels of coverage – some may only cover you in case of emergencies. In contrast, others will allow you to visit specialists without authorization (although this comes at a higher price).
The following may be potential advantages of private insurance plans:
- They may cover more than Medicare does.
- Most plans offer coverage for pre-existing conditions, which means that you don’t have to wait out two years before your medical expenses are covered.
- When it comes to premiums, private insurance usually costs less than Medicare in the long run (provided there is no gap in your employment). The exact amount will vary depending on which plan you choose and how much of it can be claimed by tax exemptions or deductions.
Medicare vs Private Insurance Costs
When comparing Medicare and private insurance costs, you should consider the premiums, deductibles, and co-pays. The insurance cost of Medicare is usually significantly lower than private insurance plans.
The premiums for Medicare are usually less expensive than private insurance. Still, there is no deductible or co-pays with this plan, which means you will be responsible for all charges until you reach your out-of-pocket maximum (OOM).
This OOM is the most that any patient would have to pay in a given year before Medicare pays 100% of their medical expenses. The amount can vary depending on an individual’s situation, and they may not even use it in some years due to costs being below the OOM threshold.
Because there is no premium cost, individuals who qualify could save thousands each year over those paying high monthly premiums through a private health care provider. There are exceptions, though when people enroll in a private health care plan during open enrollment and then lose their job or retire, they may end up paying more than the average monthly premium for Medicare.
Which is Better & Can You Get Both?
Choosing between Medicare and private insurance can be difficult. You can get both, but it depends on how you look at them. But, please feel free to reach out to us, for free, anytime you have questions at (888) 352-6672 and we’ll make sure you’ve compared the right plans for you.
The following are factors to consider when choosing between Medicare and private insurance:
Costs to Consider
It can be more affordable to get both. If you don’t qualify for Medicaid but make too little money to afford premiums on your own, it might be free or very cheap. You may also consider a low-income subsidy (LIS) plan if available in your state.
These plans often offer comprehensive benefits at a significantly reduced rate, with some even offering dental coverage as part of the package. The catch is that they usually only cover people below a certain income level and have limited assets such as savings accounts and retirement funds.
In addition, there will be co-pays involved depending on the specifics of the policy you choose, so knowing what those costs would be upfront is essential.
Get the Benefits
Medicare options and private insurance plans each have their list of covered benefits as well as exclusions, so knowing what’s included or excluded can help you decide which plan seems to be the better fit for your needs.
For example, private health care plans often include vision and dental coverage, while Medicare only covers medical expenses. However, some supplementary policies cover those other things too.
In conclusion, it’s essential to do your research and determine what you qualify for before making any decisions. Medicare vs. private insurance are viable options; be sure to have all the facts before signing on either dotted line.
Compare Today!
A licensed insurance agent from our team will contact you to discuss your Medicare options.
