Can I have both Medicare and individual health insurance?

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What is Individual Health Insurance?

Individual Health Insurance falls under several different names, with a changing role as you move through your life. As soon as you become eligible for Medicare insurance, Medicare will automatically assume the role of your primary insurance provider – unless you are already covered by a policy that offers more comprehensive cover, for example, employee healthcare insurance. 

If Medicare takes the role of your primary insurance, your individual health insurance will fall into the role of supplemental insurance, acting as the secondary financial support which kicks in once your Medicare coverage has paid out against its agreed expenses. For those questioning why they might need a secondary policy, Medicare is great for providing financial support in the face of hefty medical bills, but it has limits and even with Medicare the bills that you are expected to pay can quickly stack up. A secondary or supplemental healthcare policy can act as a buffer which steps in once Medicare has reached its limit – with many turning to Medigap and individual insurance providers for supplemental policies.

What are the Limits and Benefits Associated with Individual Health Insurance?

Contrary to limits imposed by your individual health insurance, most beneficiaries select a second policy as a way of topping up the financial support offered by Medicare – essentially filling the gaps and limits left by Medicare. 

One of the greatest benefits of progressing with an individual health insurance provider is that the coverage you receive can be tailored to your needs rather than set within the parameters of the limited Medicare plans and packages – for example, Medigap offers a selection of plans from Plan A through to Plan N, while private insurance companies each offer their own selective packages based on local prices and a standardized list of benefits which must be followed across the United States.

Is It Worth Having Medicare Cover and Individual Healthcare Cover?

The main thing you need to get your head around with Medicare and additional healthcare insurance policies is the expenses and premiums that you face with each. For example, you may find that your employer coverage continues after you reach retirement age, however, your premiums increase and it may in fact be worth closing that insurance policy and moving forward with Medicare and a Medigap supplemental insurance plan. 

Likewise, you may find that once your Medicare plan has covered its 80%, the 20% you are left with, plus any deductibles and non-eligible expenses, means that you are in need of a secondary policy in order to fill the gaps left by your primary insurance policy. 

If the numbers add up and you decide the coverage is comprehensive enough to provide you with the financial support you are likely to need, it is absolutely worth getting both a Medicare policy and a supplemental individual healthcare insurance policy. 

For support and guidance on selecting the right Medicare plan and individual healthcare plan for you, get in touch with the team at Bobby Brock Insurance today.

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Justin Brock

President & CEO of Bobby Brock Insurance