If you are a Medicare Supplement Plan (MSP) beneficiary, it may be important to think about other options if you become disabled or become aged over time. Senior citizens who are unable to get insurance because of their income need or have had insurance plans canceled because of lack of maintenance may be eligible for Medicaid. Medicare supplement plans 2021 cover healthcare
Senior citizens are traditionally among the most expensive to insure, and there is also the problem of senior abuse of the system. Over-insurance is rampant and the Elderly is a large population of uninsured, because they rely on Social Security Disability to survive. A policy that covers an “earnest discount” and not the “actual value” of your home might make more sense than a policy that covers 100% of the loss of your home, but it may not make sense to go with a policy that pays the higher of the “income loss” or premiums.
In general, a good insurer will offer an affordable rate for elderly or disabled beneficiaries. That should include lower rates for seniors who receive Social Security Disability Insurance (SSDI) benefits or Supplemental Security Income (SSI) payments and rates that are based on these different types of benefits.
Medicare income insurance is designed to pay income when one is medically unable to work, or finds it difficult to obtain gainful employment. The most common type of income insuring is called the Earnest Discount. Because this policy has a lower premium than other forms of income insuring, it can be used as a starting point for negotiating a monthly benefit, or even as an exit strategy for an insurer.
Several years ago, seniors were automatically enrolled in Medicaid, because there was no mechanism to automatically determine the affordability of a policy. There is no current evidence that indicates Medicaid benefits are less than the benefits offered by Medicare.
Medicaid was not meant to help senior citizens, and many of those who are entitled to Medicaid were turned down. It is usually a function of being able to provide proof of financial hardship to a physician, or to the state. If you qualify for Medicaid, and you can provide documentation that shows financial hardship, you are very likely to qualify for Medicaid benefits.
Senior citizens who become disabled and cannot work or earn income may be eligible for Supplemental Security Income (SSI) benefits. SSI checks are paid monthly, but they will come at a reduced amount, because the total of your benefits are based on the standard of living you would have if you worked and made a certain amount of money. The level of benefits you receive is a function of your pre-recession income and the cost of living.
If you are not eligible for Medicaid or Supplemental Security Income, but you are eligible for income insurance, then you may be eligible for Medicaid. As you age, the amount of money available for income insurance is greater.
Retirement accounts are important for seniors who do not have a pension or 401(k). They have the advantage of being protected from a possible reduction in their monthly benefits, but that protection expires at the time of death. Senior citizens who fail to take steps to build a substantial retirement fund may find themselves at risk of Social Security income being withheld from their monthly benefit checks at the time of death.
Many senior citizens want to continue receiving Social Security income in their retirement years, but there is no guarantee that they will continue to be guaranteed benefits as they reach retirement age. While Social Security income is a protected asset, it is not guaranteed, and one who fall behind in their Social Security payments, and who is unable to make timely Social Security contributions, could be subject to possible loss of entitlement to Social Security benefits.
Caregivers who remain active retirees, but cannot maintain a regular income, may qualify for Medicaid. Medicare Supplement Plans is a way to make sure they can continue to receive benefits, even when disabled. This is the same as people who are senior citizens in nursing homes receiving Social Security Disability Insurance.
If you have been out of work or never able to work because of your disability, the most important thing to remember is that no matter what you chose to do, you are still eligible for Medicaid. Supplement Plans may be appropriate for you. If you are not eligible for Social Security or Medicare Benefits, then it may be prudent to review your options and seek a policy that will allow you to remain covered for your medical needs.