Though senior discounts are a huge plus, turning 65 can be intimidating for most, as with age comes the chance to enroll in Medicare and other new health insurance options. There are multiple types of popular health insurance plans, including group, individual, Medicare, and Medicaid. It is essential to gain knowledge and insight about all of them before making a personal decision on which is best for you and your health needs.
Matthew Bussard supports Medicare users in Rhode Island as a financial service broker. In his profession, Bussard cares deeply for all of his clients' needs and is passionate about helping the older population choose the best medical insurance plan. He also acts as a guide for them through the process. Understanding what options seniors have is critical in Bussard's eyes, and clear communication is key. In the following article, Bussard explores the differences among a group, individual, Medicare, and Medicaid insurance plans and discusses what each offers.
Group Insurance Plans
A group insurance plan, or group coverage, is health insurance provided by an employer given to employees. Group coverage can also be supplied by an association and given to its members. Usually, employers allow their employees to choose from a list of health insurance plan options. Employer-sponsored coverage either completely covers the monthly premium cost or some of it.
Individual Insurance Plans
Suppose an individual's health care does not come from an employer or association, and the individual buys health insurance on his or her own. In that case, that is considered an individual insurance plan. Individual insurance plans come with the freedom to shop and choose the best personally suited health care plan on the market. Those who purchase an individual health care plan are responsible for the entire monthly premium payments.
Medicare Insurance Plans
Medicare is a government-run social insurance program created in 1965 to help provide health care to older Americans with low incomes who could not afford private health insurance. This federal program supplies health coverage for Americans who are 65 or older. Medicare also provides health coverage for those who have a severe disability as well as to dialysis patients, no matter the amount of income. Medicare is considered an insurance program, and those covered pay into trust funds, which cover medical bills. Non-hospital coverage needs small monthly premiums, and patients pay part of hospital costs through deductibles.
Medicaid Insurance Plans
Medicaid is also a government-run social insurance program but is very different from Medicare. Rather than being an insurance program, it is an assistance program. This program, like Medicare, was created in 1965, too, in response to assist older and lower-income Americans who could not buy private health insurance. Rather than just being a federal program like Medicare, Medicaid is both a state and federal program that assists those with meager income by providing health coverage. Those eligible for both Medicare and Medicaid are considered duel eligible, which means both Medicare and Medicaid programs will work together to give them good health coverage.