Medicare and People Age 40-64
I'm not anywhere near Medicare age! Why should I think about it?
Now is actually the best time to think about your potential health care and long-term care needs because it gives you more options and time to plan. We call it "owning your future."
The Truth about Medicare
Fact: Medicare was never designed to cover all of your health costs.
Medicare was implemented in 1965 and was initially designed to limit the cost of medically necessary health care for seniors. Coverage was eventually expanded to younger people who met Social Security's definition of disability. In the beginning, Medicare did not pay for preventative services or prescription drugs. Medicare gradually added coverage for many preventative services such as pap smears, mammography, and colonoscopies. With the Medicare Modernization Act of 2003, Medicare introduced Part D prescription drug coverage. Just as Original Medicare Parts A and B have associated premiums, coinsurance, and deductibles, Part D Plans also have out-of-pocket costs including a coverage gap or "donut hole."
Medicare continues to change and evolve. Whether you are soon turning 65, a person with a disability, or a caregiver, knowing the facts about Medicare will benefit you and your loved ones along the way. Explore this website to learn more, and you may always call HICAP at 1-800-434-0222 for more guidance and direction.
What about Long-Term Care?
Medicare does not cover ongoing help for the basic activities of daily living (also called ADLs) such as bathing, eating, and toileting. This is called long-term care and it is very expensive. The health care industry indicates 40 is a good age to look into purchasing a long-term care insurance policy to cover this type of assistance. The younger you are, the lower the premium you will have to pay. Should you wait until you are in your 60s, your premium may become unaffordable. If you wait until you are in your 50s or 60s, you may have health conditions that could disqualify you from purchasing long-term care insurance. There are also long-term care insurance plans that are pre-paid policies. You pay premiums for a set amount of time and then you do not pay anymore. This may be a type of policy to look at if you are in your 40s or 50s. The premium will be more but it will be paid up in advance.
HICAP Program Managers, the California Department of Aging, and the California Department of Insurance have assembled a guide to long-term care entitled "Taking Care of Tomorrow." HICAP advises you read this book before you make any long-term care decisions. Call HICAP at 1-800-434-0222 for your free copy of the book or to schedule a long-term care insurance counseling appointment.
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