Medigap Insurance To Play A Major Role In Helping Seniors
Survive
Medigap Needed To Supplement Inevitable Health Care Cost
Increase Over Next Decade. Health care expenses will increase by
about 72% over the next decade say Analysts who anticipate a
7.2% per annum increase in health care costs. Another trend
within the new government projections is an ever-growing
reliance on the government to foot the bill for health care. By
the end of the next decade, the government will pay for about
half of the nation's medical costs. The other half may need Medigap
Insurance to supplement out-of-pocket escalating costs not
covered by Medicare.
Especially seniors need to be aware of the predicted increases
in the two main health sectors that apply to them. The country's
aging population is expected to drive increases in two key areas
of health care spending: nursing homes and home health. Spending
on nursing homes will grow from $121.7 billion in 2005 to $216.8
billion in 2015. Home health will grow from about $49 billion
last year to $103.7 billion in 2015. It represents the nation's
fastest-growing sector in health care.
"Although Medicare covers many of the common medical
requirements, there are many things that it does not cover and
this is where Medigap
or Medicare Supplement Insurance becomes vitally important"
said David Thau, a well known California insurance advisor and
founder of 'Keep It Simple Insurance'. " Medigap is specifically
designed to provide reimbursement for the out-of-pocket costs
that Medicare does not cover. Prediction is always a better
alternative to hindsight so long term care insurance should be
examined long before it is needed to avoid the problems of these
increasing costs" he added.
President Bush recently urged Americans to confront the rising
cost of health care. In his State of the Union address last
month, the president pushed health savings accounts, or HSAs, and the
high-deductible insurance plans that go with them. For a younger
generation this is a good strategy, however for seniors, a
Medigap policy would probably be more appropriate to cover their
out-of-pocket expenses.
The 7.2 percent annual increase in health care costs over the
coming decade that analysts forecast is in line with the 7.4
percent increase in 2005, but the overall economy is projected
to grow at a rate of only 5.1 percent over the coming decade,
which means health care will play an ever-growing role and we
should be aware of the fact that there is a shortfall that needs
to be covered. Medigap Insurance serves that purpose and should
be seriously considered by every senior.