Jason Fitzgerald Korb is an insurance broker in the Greater Washington D.C. area providing insurance solutions for all ages, but providing specialized care for seniors. Listed below are some tips to help understand the best choices available to you.
Best overall: Medicare
For those age 65 and older or who have a qualifying disability, the Medicare program will be the cheapest health insurance with the best benefits. When you were working, you paid into the Medicare program via a Medicare tax on income. Your senior years are the time to take advantage of this investment.
Medicare has several different parts including options from private insurance companies and a public option directly through the Medicare agency. This variety allows you to decide what type of plan works best for you.
There are two main pathways for enrolling in Medicare coverage:
The Medicaid public health insurance program provides free or affordable insurance for those who are eligible. Even if you're over age 65 or enrolled in Medicare, you can qualify for dual enrollment in both Medicaid and Medicare, which will lower your costs.
Qualification criteria for Medicaid vary by state. In 39 states and Washington, D.C., you can qualify for Medicaid if you earn up to 138% of the federal poverty level, which means you're usually eligible if you earn less than $18,754 as an individual or $25,268 as a couple for 2022. The limits are higher in Alaska and Hawaii, and in 11 states, Medicaid eligibility requires a lower income and can vary by state or situation.
Seniors over age 65 who have incomes that are too high to qualify for Medicaid may still be able to qualify if they have high medical expenses. The Medicaid "spenddown" program lets you subtract your medical expenses from your income, and this reduced amount can be used for Medicaid eligibility.
Best Medicare Advantage: Humana
Humana stands out as providing the ideal combination of low-cost plans with good coverage that are widely available and have reasonably good ratings. This overall strong performance makes it our pick as the best Medicare Advantage plan provider.
Bundled Medicare Advantage plans are administered by private insurance companies, and you could have more than 20 plans offered in your area. Most people will have access to Medicare Advantage plans starting at $0 per month, and the average cost is $28 per month.
Best Medicare Supplement: AARP/UnitedHealthcare
Medicare Supplement (Medigap) plans provide secondary coverage on top of your Original Medicare benefits. Medigap plans will usually cost more than Medicare Advantage, but typically, you'll pay less for medical care with a Medigap plan than with a Medicare Advantage plan. This is especially useful for seniors who are concerned about escalating medical costs as they age.
Medigap plans are different from other types of insurance plans because coverage is standardized by plan letter. That means Medigap Plan G from one company will have the same benefits as Plan G from another company.
Because of this, we recommend that you first choose the plan letter with the benefits you want and then choose the provider that has affordable prices, good ratings and useful add-on perks.
Best prescription drug plan: Aetna
Aetna/SilverScript is the best Medicare Part D provider because you can get good benefits at affordable prices, starting at just $6 per month.
For those choosing Original Medicare, the only way to have coverage for prescription drugs is to sign up for a stand-alone prescription drug plan called Medicare Part D. This is an important coverage component for seniors and retirees because your use of prescription drugs can increase as you age, and medications can be very expensive.
A Part D plan isn't needed for most people choosing Medicare Advantage because prescription drug coverage is included in the plan's benefits. However, there are some less common circumstances where you can add on Part D such as if your Medicare Advantage plan is a Private Fee-for-Service (PFFS) plan or a Medical Savings Account (MSA).
Best if you’re under 65: Blue Cross Blue Shield
Blue Cross Blue Shield has the best overall health insurance plans. They're well-rated plans and widely available through HealthCare.gov or your state marketplace.
A traditional health insurance plan is the best option if you're under 65, don't yet qualify for Medicare and earn too much to qualify for Medicaid. You can get the best deal on these plans through HealthCare.gov, also called the health insurance marketplace.
Health insurance costs can get very high as you age, and for those over 60, a Silver insurance plan costs more than $1,000 per month, on average. However, the health insurance marketplace has a program that offers premium tax credits, which provide discounted rates for those who have low to moderate incomes.
For example, an individual earning $54,360 per year (400% of the federal poverty level) would pay about $387 per month for a Silver health insurance plan. These earnings could include retirement account withdrawals, self-employment earnings, unemployment income or other income sources.
Best short-term coverage: UnitedHealthcareUnitedHealthcare's short-term plans provide some of the broadest coverage available for this type of insurance.
If you have a gap in your insurance coverage, such as after retirement and before Medicare, a short-term policy is a quick way to get benefits. The cost for a short-term plan is usually very low. But plans are not regulated in the same way as traditional insurance. This is important to note because some benefits will be limited, and you may not qualify for a plan because of your age or if you have a preexisting condition.
Seniors should use caution when selecting a short-term policy over other types of health insurance. However, they're a useful solution if you need some coverage for a few months before your Medicare plan or traditional health insurance policy begins.
Best overall: Medicare
For those age 65 and older or who have a qualifying disability, the Medicare program will be the cheapest health insurance with the best benefits. When you were working, you paid into the Medicare program via a Medicare tax on income. Your senior years are the time to take advantage of this investment.
Medicare has several different parts including options from private insurance companies and a public option directly through the Medicare agency. This variety allows you to decide what type of plan works best for you.
There are two main pathways for enrolling in Medicare coverage:
- Medicare Advantage (also called Medicare Part C) is a health insurance plan that's purchased from a private insurance company. Plans provide bundled coverage for medical care and hospital care, and they frequently include prescription drug coverage, dental and vision.Medicare Advantage plans are similar to traditional health insurance plans in how they are structured. For example, they have copayments that you pay for each medical service, a deductible and an out-of-pocket maximum. And because plans are through private insurance companies, you'll have a network of doctors and health care providers affiliated with the plan.
- Original Medicare lets you combine multiple plans including Part A (hospital insurance) and Part B (medical insurance). These two plans are administered directly by the government, and on top of these plans, you can add on additional coverage from private health insurance companies based on your needs.
You can add on a Medicare Supplement plan (also called Medigap), which reduces your portion of the medical costs from 20% of the bill to nearly $0. Another add-on is a Medicare Part D plan for prescription drug coverage, your only way of getting prescription benefits with Original Medicare.
The Medicaid public health insurance program provides free or affordable insurance for those who are eligible. Even if you're over age 65 or enrolled in Medicare, you can qualify for dual enrollment in both Medicaid and Medicare, which will lower your costs.
Qualification criteria for Medicaid vary by state. In 39 states and Washington, D.C., you can qualify for Medicaid if you earn up to 138% of the federal poverty level, which means you're usually eligible if you earn less than $18,754 as an individual or $25,268 as a couple for 2022. The limits are higher in Alaska and Hawaii, and in 11 states, Medicaid eligibility requires a lower income and can vary by state or situation.
Seniors over age 65 who have incomes that are too high to qualify for Medicaid may still be able to qualify if they have high medical expenses. The Medicaid "spenddown" program lets you subtract your medical expenses from your income, and this reduced amount can be used for Medicaid eligibility.
Best Medicare Advantage: Humana
Humana stands out as providing the ideal combination of low-cost plans with good coverage that are widely available and have reasonably good ratings. This overall strong performance makes it our pick as the best Medicare Advantage plan provider.
Bundled Medicare Advantage plans are administered by private insurance companies, and you could have more than 20 plans offered in your area. Most people will have access to Medicare Advantage plans starting at $0 per month, and the average cost is $28 per month.
Best Medicare Supplement: AARP/UnitedHealthcare
Medicare Supplement (Medigap) plans provide secondary coverage on top of your Original Medicare benefits. Medigap plans will usually cost more than Medicare Advantage, but typically, you'll pay less for medical care with a Medigap plan than with a Medicare Advantage plan. This is especially useful for seniors who are concerned about escalating medical costs as they age.
Medigap plans are different from other types of insurance plans because coverage is standardized by plan letter. That means Medigap Plan G from one company will have the same benefits as Plan G from another company.
Because of this, we recommend that you first choose the plan letter with the benefits you want and then choose the provider that has affordable prices, good ratings and useful add-on perks.
Best prescription drug plan: Aetna
Aetna/SilverScript is the best Medicare Part D provider because you can get good benefits at affordable prices, starting at just $6 per month.
For those choosing Original Medicare, the only way to have coverage for prescription drugs is to sign up for a stand-alone prescription drug plan called Medicare Part D. This is an important coverage component for seniors and retirees because your use of prescription drugs can increase as you age, and medications can be very expensive.
A Part D plan isn't needed for most people choosing Medicare Advantage because prescription drug coverage is included in the plan's benefits. However, there are some less common circumstances where you can add on Part D such as if your Medicare Advantage plan is a Private Fee-for-Service (PFFS) plan or a Medical Savings Account (MSA).
Best if you’re under 65: Blue Cross Blue Shield
Blue Cross Blue Shield has the best overall health insurance plans. They're well-rated plans and widely available through HealthCare.gov or your state marketplace.
A traditional health insurance plan is the best option if you're under 65, don't yet qualify for Medicare and earn too much to qualify for Medicaid. You can get the best deal on these plans through HealthCare.gov, also called the health insurance marketplace.
Health insurance costs can get very high as you age, and for those over 60, a Silver insurance plan costs more than $1,000 per month, on average. However, the health insurance marketplace has a program that offers premium tax credits, which provide discounted rates for those who have low to moderate incomes.
For example, an individual earning $54,360 per year (400% of the federal poverty level) would pay about $387 per month for a Silver health insurance plan. These earnings could include retirement account withdrawals, self-employment earnings, unemployment income or other income sources.
Best short-term coverage: UnitedHealthcareUnitedHealthcare's short-term plans provide some of the broadest coverage available for this type of insurance.
If you have a gap in your insurance coverage, such as after retirement and before Medicare, a short-term policy is a quick way to get benefits. The cost for a short-term plan is usually very low. But plans are not regulated in the same way as traditional insurance. This is important to note because some benefits will be limited, and you may not qualify for a plan because of your age or if you have a preexisting condition.
Seniors should use caution when selecting a short-term policy over other types of health insurance. However, they're a useful solution if you need some coverage for a few months before your Medicare plan or traditional health insurance policy begins.