Embed from Getty Images
The Medicare Open Enrollment is from 15 Oct to 7 Dec. It is the window to join or to change the Medicare plans. A piece of information I did not know until recently. In fact, my mailbox and inbox are flooded with advertisements as I approach the magic age of 65.
What's Medicare? It is a social insurance introduced in 1965 with the aim to provide health insurance to older and disabled people in the US. Currently, 18.7% of Americans are covered by Medicare. You may be wondering why is the big deal about age 65? Below are what I learned. For details, visit Medicare.gov.
While Medicare is run by the US government, it is not free for average folks like me. No sirree. The monthly premium for the insurance coverage is based on one's income level. At age 65 is when one can sign up for the insurance. And fail to sign up entails a permanent penalty charge for each year late. Obviously, to discourage folks waiting until they are old and sick to sign up.
And this presents a dilemma for me. As I consider myself relative healthy, paying for the monthly premium seems a waste of money. But if I don't sign up when I turn 65, I risk the penalty when I change my mind later. The barrage of ads I receive are from private insurers who offers Medicare Advantage which is a privatized version introduced in 1977.
And the program is so popular that half of the Medicare beneficiaries are enrolled in the Medicare Advantage. Who wouldn't when it offers better coverage at lower costs? So, what's the catch? Is the Medicare Advantage more efficient given it is run by for-profit insurers?
What would you do if you were in my shoe?
No comments:
Post a Comment