Health Insurance For Seniors: Comparing Insurance Plans

Here is some information on the most common health insurance options for seniors.

Medicare

Medicare is a government-sponsored healthcare program that covers seniors 65 years and older. Medicare is divided into four parts, each covering different healthcare costs:

Medicare Part A

Medicare Part A pays for hospital care, nursing home care, hospice care, and home healthcare. Nursing homes and home healthcare are only covered under limited circumstances.

Most seniors do not pay premiums for Medicare Part A coverage. However, if you did not pay enough Medicare taxes during the years you were working, you will have to pay premiums for Medicare Part A.

However, there are deductibles and coinsurance that can add up. For instance, in 2023 you will be subject to a deductible of $1,600 for in-patient care at a hospital. This covers your first 60 days in the hospital; after that, you're on the hook for a $400 per day coinsurance fee for days 61 through 90 of in-patient care, and then $800 per day if you use days from your “lifetime reserve" – 60 days of “extra" in-patient care coverage over your lifetime. If you are in the hospital for longer, you will be responsible for the full cost of those days.¹

Medicare Part B

Medicare Part B pays for other types of medical care, including doctor visits, diagnostic medical tests, medical equipment, ambulance transportation and other outpatient services.

Part B has a standard $164.90 monthly premium and an annual deductible of $226 in 2023.²

Medicare Parts A and B together are often referred to as “original Medicare" and are managed by the federal government.

Medicare Part C

Also called Medicare Advantage, Medicare Part C plans are typically HMOs or PPOs offered by private companies approved by Medicare. If you select this plan, you receive Medicare Part A and B benefits, plus extras like vision, hearing, dental, and health and wellness programs. Most also offer prescription coverage, known as Part D (more on this below).

Premiums for Part C vary by plan, as do deductibles and coverage limitations.

Medicare Part D

Medicare Part D helps pay for prescribed drugs and is an optional add-on, though it is usually included with Part C in Medicare Advantage plans. Because you buy Part D from insurance companies contracted with Medicare, premiums and coverages vary. However, deductibles are limited. For instance, no Part D plan can have a deductible of more than $505 in 2023.²

Medicare Supplemental Plans (Medigap)

Also called Medigap, Medicare Supplemental plans supplement the coverage you receive under Medicare. They are offered by private companies to help seniors pay for costs that aren't covered by Medicare. These might include copays, coinsurance, deductibles, and services like health insurance outside the U.S.

Medicaid

Medicaid is a government health plan that covers seniors with low incomes who receive Medicare but need help paying for their Medicare Part A and B premiums and out-of-pocket costs. It also covers services like nursing facility care, prescription drugs, eyeglasses, and hearing aids.

Private Insurance Policies

Seniors who are still working may choose a private group policy through their employer. Upon retirement, though, people usually lose access to these plans unless they are part of a pension or union plan.

The Federal Health Care Marketplace

Seniors who retire or lose their job-based health plan before turning 65 can buy health coverage via the federal Health Insurance Marketplace. Depending on their income level, some may qualify for subsidies to reduce the cost of the plan they choose.³

Those with retiree health coverage may choose to buy a plan on the Marketplace instead, but they cannot get tax credits and other income-based savings.³

Those who voluntarily leave a job and lose coverage may also buy a plan on the Marketplace, but not until the next open enrollment period, usually November 1 to December 15.³

Managing Healthcare Costs with the CareCredit Credit Card

If you are looking for an option to help manage your medical bills, consider healthcare financing with the CareCredit credit card. The CareCredit card can help you pay for the care you want and need and make payments easy to manage.* Apply today and use our Acceptance Locator to find a provider near you that accepts CareCredit. Continue your wellness journey by downloading the CareCredit Mobile App to manage your account, find a provider on the go, and easily access the Well U hub for more great articles, podcasts, and videos.

Our Expert Reviewer

Patty Caballero and her team of consultants together have more than 35 years of health insurance knowledge working for some of the biggest health insurance companies in the US. She has knowledge in building brands and strategic initiatives to help consumers better understand their health benefits.