Healthcare costs keep rising, but seniors are savvy. They find smart ways to cut expenses. Check out these strategies on how to save thousands while ensuring quality care.
Choose Smartly Between Original Medicare and Medicare Advantage
Understanding both programs in great detail is important. Sometimes, the obvious choice isn’t necessarily the best for your individual situation.
Here’s an example: A beneficiary’s first choice might be a Medicare Advantage plan, chosen for its $0 premium, and maybe added benefits like a gym membership, but high copays add up quickly.
Revisiting Original Medicare and Medigap (and still being within the Medigap 6-month window), an enrollee could switch to a plan like Plan G. When researching Medigap, something often liked are these two ways to save with Plan G: the partial coverage when traveling abroad, and being protected from Medicare Advantage’s $9,000+ maximum annual out-of-pocket exposure – which is much more than a Plan G’s premium in a year.
Optimize Coverage Annually
Review Medicare plans during Open Enrollment (October 15 – December 7). Private insurers change benefits and costs on Medicare Advantage and Part D plans yearly, and your medical needs can change, too.
Advantage and Part D insurance carriers send out an Annual Notice of Change Packet in September each year detailing the coverage and cost changes to expect for the upcoming year.
Maximize Prescription Drug Savings
Prescriptions are some of the costly parts of healthcare for seniors. Consider Medicare’s Part D Extra Help program, as you can qualify for this even if you don’t qualify for Medicaid.
Utilize Free Preventive Care
Medicare covers preventive services at no cost, including annual wellness visits, cancer screenings, and diabetes testing. Early detection prevents expensive treatments later.
Taking full advantage of preventive services and screenings can help resolve potential life-threatening and costly issues with simply lifestyle changes or lower-cost treatment or procedures.
Apply for Medicare Subsidies and Assistance
Many seniors can qualify for Medicaid, Medicare Savings Programs, or Extra Help. It doesn’t hurt to try, so apply even if your income slightly exceeds stated maximums.
If qualified for both a Medicare Savings Program (which would help cover the Part B premium) and Extra Help (cutting prescriptions costs), it can save you thousands of dollars annually.
Explore State and Local Programs
Every state offers assistance with senior healthcare costs. State Health Insurance Assistance Programs (SHIP) can provide free counseling; Area Agencies on Aging also offer community resources.
Shop Smart for Healthcare Services
Compare prices for non-emergency procedures. Use telehealth, community clinics, and urgent care instead of emergency rooms for appropriate conditions.
Let’s say you have a Medicare Advantage plan and need to get a minor infection checked out. Going to a local urgent care clinic instead of visiting the emergency room (ER) could mean paying a $40 copay versus a $250 ER copay under a Medicare Advantage plan.
Negotiate Medical Bills
Always negotiate hospital/doctor bills, ask about payment plans and senior discounts. Many providers reduce charges or can arrange payment schedules.
Leverage Health Savings Accounts
If working with HSA access, maximize contributions before age 65. Funds remain tax-free for medical expenses, including Medicare premiums after 65.
The Bottom Line
Healthcare coverage is not ‘set it and forget it.’ Proactive planning and ongoing attention to options can lead to substantial savings while ensuring quality care. Remember that Medicare brokers can help navigate these options at no cost.
