A Guide to Health Care Financial Management For Seniors

Healthcare financial management is crucial for individuals of all ages. Ideally, you must be financially stable before retirement to accommodate your healthcare needs. Seniors are prone to serious health concerns like dementia, memory loss, and Alzheimer’s disease. That’s why they must be well-guided in healthcare financial management.

To help you determine the challenges seniors usually face in terms of financial management and some efficient ways to resolve them, here’s a guide we’ve prepared for you. 

Understanding Health Care Costs

Seniors have many healthcare expenses to manage, like premiums, deductibles, copayments, and other out-of-pocket expenses. Americans over 65 are eligible for government-funded Medicare insurance, which covers hospital stays, doctor visits, and some prescription drugs.

You may also get Medigap as a supplemental private insurance plan which covers substantial copayments for services covered by Medicare. But in certain circumstances, you may find it necessary to seek a loan. 

If you're considering loans like Speedy Cash, you must be aware of the potential risks involved. Make sure to find a reputable lender to avoid financial trouble. Most importantly, prioritize reviewing the loan terms at your own pace before making any commitments.

Moreover, the elderly also have to pay for nursing homes. Only a few Americans have long-term care insurance. Therefore, big portions of this cost will be covered by Medicaid or by out-of-pocket.

The rising healthcare costs are evident, prompting individuals to prepare for the surge of prices as they age. To effectively manage future medical needs, you may secure a supplement plan for better predictability of your budget.

Maximizing Medicare Benefits

Medicare is a federal health insurance specifically designed for seniors (aged 65 and above). It’s also applicable to younger individuals with disabilities and people with end-stage renal disease requiring dialysis or an implant.

There are ways to get your Medicare Coverage: Original Medicare and Medicare Advantage. Original Medicare includes Part A, Health Insurance, and Part B, Medical Insurance. You can add a separate drug plan with Part D for drug coverage. Moreover, a Medigap Policy can help you cover the remaining healthcare costs like coinsurance, copayments, and deductibles.

Medicare Advantage is private insurance that’s Medicare-approved, offering an alternative coverage to Original Medicare. There may be additional benefits in Medicare Advantage that you can’t avail of in Original Medicare. A few examples of these “extras” are vision, hearing, and dental services. These bundles also usually cover Parts A, B, and D.

There are some Medicare freebies that you must be aware of. These include screenings for cardiovascular diseases and depression, flu and pneumonia vaccines, and counseling to help you quit smoking. Also, choose doctors that accept “assignments,” which means you can guarantee that you won’t be billed more than your medical deductible and coinsurance.

Managing Out-of-Pocket Expenses

For out-of-pocket expenses, you may explore options for reducing medical procedures and prescription drug costs, among many other medical procedures. One effective way to do it is to ask your doctor about the fees before your first visit. This way, you will have an idea about the breakdown of the estimated costs and check if your insurance coverage can accommodate it all.

In addition, you should also get your procedure’s item number so you can look up Medicare rebates. Of course, you should also call your health fund to check what will be covered under your policy. Lastly, keep good records so you won’t have difficulty tracking down quotes, item numbers, and other essential details about your procedure.

Long-Term Care Planning

Long-Term Care Planning is the provision of home health care, nursing home care, and adult day care for seniors with chronic or disabling conditions. Saving money for long-term health care is seniors' most viable financing option. While you’re working, reserve a portion of your income for savings.

You can also buy asset-based long-term care insurance. It covers medical expenses not covered in regular health insurance and ensures round-the-clock attention for your or your loved ones when you enter a nursing home.

Protecting Against Frauds and Scams

The older population is one of the most vulnerable to fraud and scams. Common scams targeting seniors are health insurance fraud and counterfeit prescription drugs.

Scamsters usually do health insurance fraud by promising bill insurance or Medicare for fake services and tests that are not performed. Seniors can avoid this type of scam by avoiding signing blank insurance claims and avoiding interaction with telephone salespeople and those who do door-to-door selling.

On the other hand, counterfeit prescription drugs can be avoided by paying close attention to the medicine’s packaging, specifically the lot numbers, to ensure they haven’t been switched between refills. While product promotions may be tempting, avoid them as much as possible. Products sold online and through marketing are prone to counterfeit drugs.

If you fall victim to these scams, call the local police station and your bank if money has been taken from your account. You can also obtain contact information for Adult Protective Services through Eldercare Locator at 1-800-677-1116. Share your experience and spread awareness so no other adult is victimized.

Conclusion

Proactive healthcare financial management is key to a stress-free senior life. Take heed of the guide we have shared here. Start by understanding healthcare costs, maximizing Medicare benefits, managing out-of-pocket expenses, long-term care planning, and protecting yourself from scams and fraud.