As baby boomers age into their retirement and senior years, the health insurance industry is bracing for a deluge of claims. With older age associated with increasing health problems and risks, this comes as no surprise. Though the government, as well as private insurance companies, should have planned for this long in advance (anyone with knowledge of health care knew this was coming), the fact is that nothing has been done about it.
Currently, only 13% of Americans are considered of age to be included in the senior population, yet this small percentage gobbles up more than one-third of the nation’s health care services. This includes supplemental insurance and out-of-pocket costs. Experts estimate that overall spending in our country will increase 8% annually for the foreseeable future.
Such an overall increase means that both private and public health insurance companies will be receiving more claims. Since more claims mean more money spent, this equates to an overall rate increase in health insurance premiums across the board, regardless of age or general health.
With these expected premium increases, citizens are calling on the government, both state and federal, to intervene. Individuals with pre-existing conditions are already subject to absurd monthly premiums, if they are able to obtain any health coverage at all. Many are asking that the need for supplemental Medicare insurance be done away with, reducing private health insurance premiums.
However, this plan of action leaves the burden of financing such health care on the federal government, which we already know is in the whole more than we can even wrap our heads around.
Another approach to the problem is offering health insurance that links health status with cost sharing. Research indicates that most seniors would reduce their medical consumption if cost sharing was implemented or increased, as they are often not even aware of how much their health care really is costing.
Studies also show that when a co-pay goes up for a particular prescription, seniors reduce or even eliminate their dependency on a particular medication, also reducing the amount paid by insurers. However, this finding may simply be attributed to the fact that seniors are on a fixed income and cannot afford the price increase, and may actually result in additional medical problems due to a decreased level of care.
Some private health insurance plans offered to seniors are referred to as Medigap policies, designed to cover that which Medicare does not otherwise cover. With the gaps in Medicare coverage, it is necessary for seniors to purchase this type of coverage to ensure that they are not left with thousands of dollars in medical bills for services that are not covered by Medicare.
It is extremely important to understand exactly what is and is not covered by all health insurers, whether it be a private company, Medicare, Medicaid, or an alternate state-run program. Often a family member will be glad to assist in comparing plans and identifying gaps in coverage that need to be addressed, ensuring your financial future.
What You Need to Know about Funeral Planning and Burial Insurance
For anyone who has lost a loved one, you understand how sometimes the emotional pain is more than one can handle. The emotions are always overwhelming, not to mention the financial constraints that are in most cases attached to such a loss, and can be quite draining. The expenses that arise from a funeral can prove to be more than anyone would even imagine. In our societies, they are people who will not want to be remembered by having burdened their heirs with the responsibility of giving them a decent burial. If you are such a person, funeral insurance is specifically designed for you. The burial insurance is also referred to as the funeral insurance.
This kind of insurance seeks to cover persons until they get to the age of one hundred years. At the event of death, the insurance will cover the expenses incurred in a funeral. In simpler terms, it is a way of paying for your funeral expenses so that your loved ones are not left drained financially all in the name of giving you a decent burial. The insurance eliminates all challenges that your loved ones may face when making funeral plans for your final send off. Funeral planning ensures that the grieving moments are not characterized by any more problems. It gets rid of any chances of disputes that may arise over settling some debts that a dead person leaves behind.
It is pretty easy to get this kind of insurance. You are also given the flexibility to choose how the existing policy may be utilized when a loved one dies. This type of policy will give you the peace of mind knowing that the financial burdens involved during the loss of a loved one are well catered for. Notably, such a policy can help one accumulate cash value and coverage that is permanent hence qualifies to be termed as an investment that is worth everyone’s consideration. The policy tends to cover such expenses as the costs of the casket, miscellaneous costs, funeral services as well as the funeral procession.
However, it is not limited to these costs only. There is quite a wide range of the funeral expenses that such a policy will seek to cover. The options ensure that the purchaser of the policy gets to customize the disposal of the policy funds. For anyone who plans to make his or her death easier on the pockets of those that you love, then burial insurance is the way to go.
The good thing about this kind of funeral insurance is the simple fact that the premiums are fixed at all times. This means that even though the health of the person covered deteriorates, they will not change whatsoever. When bought as part of a group, the premiums tend to be less since the risks involved are spread over the whole group. If you are wondering where to get these kinds of policies, you can get them from the funeral homes as well as other insurers, some of which specialize in funeral planning and burial insurance.