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Health Insurance For Baby Boomers Who Are Too Young For Medicare
Who Needs Private Health Insurance In Middle Age?
Indeed, many younger baby boomers are concerned about health insurance today. Many are covered by major group medical plans, but millions more do not have that luxury. The problem of finding affordable private health plans is big, and it’s growing. I know many middle-aged people who are counting down the days until they turn 65 so they can enroll in Medicare!
Health care reform promises some help, but it has not yet been fully implemented. So what can you do, as a middle-aged baby boomer, to find a private health plan today?
Some Problems With Finding Cheaper Private Major Medical Insurance For 50 To 64 Year Olds
- The fact that a person is older will put them in a more expensive premium band by itself. As you probably know, a 30-year-old will generally be much cheaper to insure than a 55-year-old, even if they are both in good health.
- People who are over 50 start to develop some middle age problems. Problems such as high blood pressure or diabetes are more common. So a middle-aged person has a much higher chance of being assessed or declined due to a health condition.
Beware of Guarantee Acceptance Health Plans
I see a lot of products that are marketed to middle aged people as guaranteed acceptance health plans. Smart marketers seem to think these plans are the low-cost answer to your health coverage needs. The point here is that these health plans usually are discount plans, and they are not health insurance at all! The old adage about being careful about anything that seems too good to be true will definitely apply here.
Limited or Structured Benefit Insurance
Another product that is a little better, but not by much, is some structured benefit plans that promise easier acceptance. Often the benefit limits are so low that these plans aren’t that valuable, and they still come with pretty big premiums. These are, technically, health insurance plans, but they are no major medical plans. The distinction is very important.
Health Savings Accounts (HSA) and High Deductible Major Medical Insurance
Here’s a solution I like for some older people who have trouble paying higher premiums for their age group. These HSA plans come in two parts. One part is a savings account. The first part is a savings account, where some deposits are tax deductible up to IRS limits. The second part is a higher deductible primary medical insurance. The idea behind the plan is that consumers can save money by paying less for a higher deductible plan and taking tax deductions.
- HSA plans tend to work well for disciplined savers who like control over their health care costs.
- They won’t work as well, of course, if the member never makes any contributions to the savings account.
- They also won’t work if the applicant has a serious health condition, such as diabetes, and can’t be accepted into the mainstream medical plan.
Pre-existing Health Conditions
Every state has some way of dealing with high-risk people who have been turned down for a major medical plan. In some states, these plans are quite expensive and they don’t accept everyone either. Health reform promises some help with the new federal high-risk plan, but that’s just starting to be implemented. To obtain current information, please search for your state’s high-risk health plan or pool.
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