This option beats out Medicare Supplemental coverage
The most commonly purchased health insurance coverage for seniors are Medicare Advantage and Medicare Supplemental plans and Medicare Part D, but recent studies have shown that they would have preferred the group coverage they had through their employers.
The Medicare plans provide seniors with protection against medical care costs.
That said, over half of the participants of a recent survey stated that they felt that the coverage that they had been receiving through their employer was superior to the protection they had through their own Medicare supplemental health insurance.
Employer health insurance plans can be very beneficial for many people.
They offer prescription discounts, low copayments for visits to doctors, and low costs to be paid out of pocket in the case of major surgeries or hospitalizations. Unfortunately, those high benefits come with significant costs in the majority of cases. Group plans include guaranteed coverage to all individuals (called guaranteed issued policies), regardless of whether or not those people have a pre-existing condition.
However, when people retire, they may no longer be able to keep the coverage that they had on the group plan they enjoyed through their employers. In these cases, they can fall back on Medicare coverage. Seniors who have turned 65 are automatically eligible for coverage from Part A, and most will choose to add Part B.
Together, Part A and Part B will provide health insurance coverage for approximately 80 percent of medical costs. However, this leaves a remaining 20 percent that must be paid by the beneficiary. To fill that gap, Medicare Advantage or Medicare Supplemental plans must be taken out.
The health insurance survey, which was conducted by MedicareMedics, found that many seniors are confused with the coverage available to them through Medicare, and aren’t exactly sure what coverage they can obtain. Though some may be uncomfortable with the change of leaving their employer plan, overall, they feel like the switch causes them to miss out, as they may or may not qualify for the plan they want, or it may leave them with higher out of pocket costs.
