Medicare was signed into law in 1965. The goal of the law was to make sure that senior citizens could find affordable health care. While some who qualify for this program are under the age of 65, the majority of users are over that threshold. Like Social Security, Medicare is under a great deal of pressure from the wave of Baby Boomers coming to retirement age. Changes to the program are likely.
Availability
As they have in every demographic they have rolled through, the large number of baby boomers born between 1946 and 1964 are now having a large impact on Medicare. As it was only made law in 1965, we can learn a great deal about how population changes affected the Medicare program.
Medicare Part A is primarily paid out of FICA taxes taken from the paychecks of previous generations. One of the big hazards to this pay-ahead mindset is that healthcare quality continues to increase thanks to the huge growth in technology, while the paychecks of the past did not have that benefit. While Medicare is extremely beneficial to our senior citizens and does a great deal for their quality of life, it is a program that will ultimately not run in the black.
However, it is unlikely that Medicare will become unavailable to senior citizens in the future. This large voting block and the organizations that represent senior citizens have done a very good job of making their voices heard. Governmental leaders will be hard-pressed to shut down the voices of America’s senior citizens.
Cost
It is likely that the cost of the different parts of Medicare will go up. The gap between basic coverage and add-ons will likely continue to grow, making the following more expensive:
- prescriptions
- dental
- visual
That being said, there are features of this demographic that will actually lower the cost of Medicare as they move through the age brackets. Baby boomers are less likely to smoke. They tend to be more active. They do a better job of getting to check-ups and catching serious illnesses early.
As the baby boomer generation ages, they are making plans to make their retirement safer and easier. Many of them appear to be planning ahead, moving into homes that will make it easier to retire in place. Some are relocating to regions that will be kinder to an aging body. All of these indications show us that ideas about aging in the United States are changing.
Flexibility
Medicare continues to expand and offer different health coverage options. Those who plan to stay in one place can continue their regular care, while those who plan to travel can actually get gap coverage to cover health insurance outside the United States.
Of course, such supplemental policies will add to the cost of your Medicare premiums. However, the ability to purchase such coverage is a strong indication that those who manage the Medicare program have a good understanding of changing demographics.
The Silent Generation should not be excluded as a powerful force for change in the growth and quality of Medicare coverage. This is the generation who saw the benefits of Social Security, which began in 1935. In a time of tremendous want, there were many senior citizens who could not cover their basic needs. The advent of Social Security and the supportive programs that followed is fairly new, but quite beloved by our older generations.
Different Parts
Medicare continues to expand, but the basics of covering doctor’s visits and hospital stays continue. One of the ways in which Medicare leads the health insurance pack is in flexibility. Seniors who live as snowbirds have a remarkable opportunity to enjoy complete coverage from a summer cabin in Maine to a winter condo in Florida.
You have the chance to change your policy each year. It’s a good idea to be proactive about your policy changes; if you plan to do some international travel, you’ll need Medicare Part M. If you are on a new prescription drug, you may need to bump up that coverage to lower your out-of-pocket costs.
It’s also a good idea to work with an insurance representative to get the best deal on your Medicare insurance coverage. If you have a doctor that you want to keep, you’ll need a policy they will accept. Your insurance rep can help you find the best policy for your income level and your physical needs. It’s also a good idea to talk with your physician’s office about the best coverage for your current conditions.
Qualifying For Medicare
You can apply for Medicare in the 3 months prior to your birthday month and for 3 months after your birthday month. It is critical that you make this application, even if you don’t plan to use it. You may lose out on qualifying for free Medicare Part A.
Even if you don’t qualify for free Part A, you may face a monthly premium penalty after a late application. This penalty could mean that you pay your extra 10% every month for a year until you can straighten out your application. You may also miss out on freebies that come with Medicare, such as discounts on your gym membership.
The application for Medicare is quite quick; you can sign up for Part A in about 30 minutes. Keep in mind that this is not like Social Security; if you delay applying for Social Security until you’re 70 you can get more money. If you wait to apply for Medicare until long after your 65th birthday, it will cost you.
Medicare is a terrific program for seniors. Even if you are still working and happy with your employer policy, it’s a good idea to check out your Medicare options once you have signed up. For example, you may find that signing up for Medicare Part C lowers the cost of your gym membership or gives you the chance to work with a trainer for a set amount of time. The perks can add up.
