There are many different plans one can consider, reconsider, apply for and drop during any time of your life, but what you can’t do is compromise on a medical plan during any point of your life. No matter which option you choose, or which healthcare provider suits you best, as long as you have a trustworthy medical plan to ensure you’re taken care of if anything does happen to you, such as an accident, illness, having to go to your doctor on a regular basis, getting medical tests done or being cared for in the case of an emergency, you’ll be just fine.
What is Medicare exactly?
Medicare is a plan, often referred to as a medical plan, that covers the majority of the cost of hospital stays, doctor’s visits, medication, etc. Some plans even include preventative care to its list of services.
What does a Medicare plan cover?
A typical Medicare plan will cover some sort of hospital plan if the any given hospital plan is not covered by medical insurance. These plans are also considered as an alternative to other types of medical coverage that are offered by medical private insurance companies. These include many different premiums to choose from, as well as some restrictions in some cases.
How much does it cost and is it worth it?
If you work for a company, your employer might pay an average of 1,45% of your wages for your Medicare plan. If self-employed, however, you might end up paying 2,9% of your income. Depending on your salary and any additional income, the more you earn, the more you’ll contribute to some Medicare plans.
There are two types of Medicare plans which are referred to Part A and Part B. While the first plan doesn’t require you to pay a premium, Part B could require you to pay between $130 or more depending on your income. If you’re retired, you’ll also have to pay a higher premium and while this might seem a tad unfair, the fact is that the older you get, the more you’re prone to use your Medicare Plan. The amount you do pay, however, also depends on whether or not your income was above an average amount of $85,000.
Additional costs that must be paid out of your own pocket
Like with anything else, fees tend to rise for any type of premium annually. Be sure to check whether your Medicare plan has any additional costs or annual increases in fees before you choose a plan. Also, if ever you do have to stay in the hospital for more than 60 days, some Medicare plans will require you to pay the additional costs and will not be able to cover you for the entire hospital stay.
If you’re a young adult, chances are you haven’t chosen a health care plan or any other type of medical cover to back you up in case of an emergency or to simply enjoy the benefits that many medical insurance plans have to offer you. Perhaps you feel like you’re a young individual and you really don’t need one yet, or that nothing could possibly happen to you in your 20’s, or whatever the case may be.
Truth is, anything could happen at any time and once you’re out in the world, living on your own, you need to at least have medical insurance, before you get anything else.
How to Choose the Right Plan for You
In order to choose the right medical insurance plan, there are some factors you need to consider. If you skip these factors or you do not consider certain basic questions, you’ll have a harder time choosing which plan is right for you, as well as not know exactly what you’re buying in to.
Consider Fundamentals of Medical Coverage
The number one thing you have to think about and conclude is the type of coverage you’re looking at. What does each plan have to offer, and does it fit exactly what you’re looking for?
If you’re worried about a medical plan being bogus or not fulfilling or not keeping to their word as per what they have to offer before you accepted the plan, be sure to check whether the coverage pan qualifies under the general Affordable Care Act in the U.S. which will ensure that the plan offers all the minimum essential coverage (MEC). It’s also a good idea to check with your insurance broker whether or not the coverage plan offers the basic MEC. Being covered with MEC will avoid any ACA penalties, as well as provide the minimum value that will cover all the fundamentals of a basic medical plan.
Be Informed About Deductibles and Out-of-Pocket Maximums
After reviewing your premium, there will be two other amounts that will grab your attention. These include the deductible amount, as well as the out-of-pocket maximum amount. Although the premium contribution represents an up-front cost, these two totals will assist with the approximate cost total cost. Increases for these amounts have been increased more than expected in the last couple of years.
A Health Savings Account
Due to the added increases in both deductible and advent of high-deductible medical plans, a lot of businesses now offers their employees to fund their own medical expenses with a health savings account. These accounts include special tax treatments that are designed to assist employees that struggle to pay for their medical care. Some employers even go as far as helping their employees settle their cost or contribute to their medical plan.
Which Premium Should You Choose?
The first thing you have to consider when choosing a premium is the cost and whether you’re able to afford it monthly. These costs will be available to both the employee and employer and will be shared with the fact that most employers will contribute to the plan. Be sure to choose a plan that is best suited to your current and future needs.