Category: Health Care

Whether you’re living on a fixed income or not, trimming expenses is always a welcome option—especially when you can do so without sacrificing the quality of the goods or services you need. In the case of healthcare—a big expenditure for many seniors—implementing these easy tips to reduce the amount you spend can result in significant annual savings.

1. Pay cash in exchange for a discount.

Insurance paperwork processing costs practices money. Offer to pay cash for your exam or test and you may score a discount of 10 percent or more according to the AARP. Of course, you’ll need to make the payment immediately with cash or a personal check.

2. Use the emergency room for life-or-death emergencies only.

Urgent care facilities can treat less serious conditions—such as fractures, sprains, cuts and abrasions—for a fraction of what you’ll pay at the ER. Your wait time may be shorter as well.

3. Take advantage of free advice.

You can avoid many doctors’ office visits by calling a telephone help line staffed by nurses to have your questions answered instead. These trained professionals can advise you on at-home treatment options and will tell you if you need to go to the ER or make an appointment with your physician.

4. Buy generic medications.

Whether prescription or over-the-counter, generic medications are always less expensive than the brand name versions are. Fill your prescription at a big-box store such as Walmart or Target—which offer special generic medication programs—and you may be able to pay as little as $10 for a three-month supply.

5. Ask about a manufacturer’s “savings card.”

Whether the medication you need is unavailable as a generic or you’re allergic to the “filler” used in the generic version, you may still be able to save if the manufacturer offers a savings card program. Eligibility generally depends on your income and insurance, so talk to your pharmacist.

6. Shop around for your medications.

If you’re willing to drive across town or fill your prescription online, you may be able to save. Call several pharmacies and research the lowest price available for your particular medications. You can always ask your preferred pharmacist if he can meet or beat the price.

7. “Split” your pills.

It is possible to split some medications in half, doubling your number of doses for the same out-of-pocket cost. If your medication comes in an uncoated pill—and is not an extended-release drug—ask your doctor if she’ll prescribe double your recommended dosage so you can take half a pill each day.

8. Stay “in-network” whenever possible.

Whether you need to see a primary care physician, a geriatric specialist, have surgery or fill a prescription, a provider who is in-network works for fees your health insurer has pre-negotiated. Out-of-network providers can charge you whatever they want—and that often means as much as 20 percent more according to the AARP. Take particular care with elective surgeries. Physicians are not always aware of who is in- or out-of-network for your particular health insurance and may make a referral to the latter. Confirm the network status of any referred provider with your insurance company before scheduling a procedure.

If you’d like to review your health insurance policy or discuss additional ways to trim your healthcare costs, contact your insurance agent today.

More than 10,000 new people enter the Medicare program every day according to the AARP—and many of them either are misinformed or haven’t had the time to learn what to expect. Errors are common and can carry significant costs. Whether you’re a senior who is new to Medicare or you have been on the program for a while, consider these costly mistakes to avoid.

1. Don’t assume you don’t qualify for coverage.

You automatically qualify for Part B coverage (for doctors’ services, outpatient care and medical equipment) and Part D (for prescription drugs) if you’re 65 or older, a U.S. citizen or legal resident, and have lived in the states for at least five years.

Qualifying for Part A (hospital insurance) is a little more complicated. You must have earned at least 40 credits by paying payroll taxes over the course of your career, qualify under your spouse’s work record, or pay Part A premiums. Delaying Medicare sign-up until you’ve earned 40 credits on your own could result in permanent late charges.

2. Don’t assume you must be full retirement age before you sign up.

While full retirement age is now 66 for most people, you must sign up for Medicare when you turn 65 unless you have health insurance coverage through your employer or your spouse’s employer. If you don’t have that type of coverage and you delay your Medicare application, you’ll pay costly permanent late charges.

3. Don’t assume good health means you can skip Part D.

If you’re not currently taking any prescription drugs, you may be tempted to skip Medicare Part D. However, no one knows what the future holds, and you shouldn’t wait to buy prescription coverage until you actually need it. Go without and suffer an unforeseen illness or injury and you could pay thousands out of pocket.

4. Don’t assume you can only sign up for Medicare during “open enrollment.”

Open enrollment (from October 15 to December 7 each year) is only for current Medicare consumers who want to make changes to their coverage. If you’re turning 65, you will have your own enrollment period. If you have employer health coverage, you can delay signing up for Medicare. If you do not, you’ll need to enroll around your birthday. Miss that deadline and you’ll pay permanent late charges.

5. Don’t miss out on Medigap full protections.

Medigap is supplemental insurance you can purchase to cover a portion of traditional Medicare out-of-pocket expenses such as deductibles and copays. In order to benefit from full federal protection, you need to buy Medigap coverage within six months of enrolling in Part B. Do so and Medigap insurers won’t be able to deny coverage or charge a higher premium based on your current health or preexisting conditions.

6. Don’t neglect to check into programs that may lower your Medicare costs.

Premiums, deductibles and copays can all eat into your savings. If you retirement income is limited, you may qualify for a program that can reduce your costs. If you qualify for a Medicare Savings Program, your state will pay your Part B premiums. If you qualify for the federal Extra Help Program, you’ll get low-cost Part D prescription drug coverage.

Medicare insurance is complicated. If you need assistance understanding the requirements and potential costs of Medicare coverage, contact your insurance provider.