How to Help Seniors Manage Their Finances
Review insurance coverage.
How to Review Health and Other Insurance Coverage
The world of insurance, particularly when it includes government-sponsored health coverage, can be confusing. Sorting out what policies and coverage your loved ones have can help them and you understand where their coverage will come from. It can also help you decide whether adding, dropping, or changing some insurance might make good financial sense. The most common kinds of insurance they're likely to have, or be eligible for but not yet have, include the following:
Medicare. This usually includes Part A hospital insurance and Part B medical insurance.
What to look for: Each senior will likely have a Medicare identification card, which has a beneficiary number on it and identifies whether he or she is enrolled in Part A, Part B, or both.
Why it matters: Knowing their Medicare number is essential for all contact with Medicare itself and with any healthcare provider.
Medicare Advantage (Part C) managed care plan. One or both parents might be enrolled in Part C instead of Medicare Parts A and B; this means membership in an HMO or similar private health plan.
What to look for: If they have Part C, they'll likely have a separate enrollment card, identified with the name and number of the managed care plan and the membership number.
Why it matters: You need the name, address, and membership number of the plan for all correspondence. Also, seniors can switch into or out of a Part C plan during the plan's open enrollment period, which lasts for at least a month in the autumn.
Medicare Part D prescription drug plan. This plan is issued and administered not by Medicare but by a private insurance company, which handles all its own paperwork.
What to look for: This plan also has its own enrollment card, identified by the issuing company's name and the name of the plan.
Why it matters: Filling prescriptions under the plan may be limited to certain pharmacies, which you can find out by contacting the plan or going to its website. Also, Part D plans have a yearly open enrollment period from November 15 to December 31; your family members may want to switch plans if their health needs -- or the coverage itself -- have changed.
Medigap. This is a private health insurance policy supplementing Medicare coverage; the company issuing the policy issues its own paperwork.
What to look for: If your loved ones have a Medigap policy, they will have a copy of the original policy, an identification card issued by the insurance company, and regular bills for payment of their premiums.
Why it matters: The terms of the policy will tell you what it covers and how much it pays. The policy name and number is necessary for all contact with healthcare providers and the insurance company concerning bills and coverage.
Retiree health coverage. Your loved one may have this from previous work; it would supplement Medicare.
What to look for: Your family members would have a copy of the policy in paperwork from either the private insurance company that issued the policy or from the benefits office of their previous employers.
Why it matters: The policy name and number is required for all claims. Also, the policy may have a claims process that requires a separate submission of medical bills and records.
Veterans health coverage. This offers a system of healthcare as a supplement or even an alternative to Medicare, if one of your loved ones was in the military.
What to look for: If either parent receives medical coverage from the Department of Veterans Affairs healthcare system, they will have a card that indicates their V.A. ID number and the level of care they're entitled to. They may also have records indicating specific V.A. medical facilities where they've received care.
Why it matters: V.A. medical care may cost much less than care that is only partly paid for by Medicare.
Medicaid. Operated by the state, this may be available to cover almost all medical care if your loved one has very low income and few assets other than his or her home.
What to look for: Look for a Medicaid identification card and number. If your loved one isn't enrolled in Medicaid but has low income and few assets other than a home, contact your local social services agency to see if he or she can qualify.
Why it matters: If your loved one is enrolled in Medicaid, he or she can only receive its benefits if he or she gets healthcare from participating providers. If he or she qualifies for Medicaid but isn't enrolled, he or she may be spending far too much in out-of-pocket medical expenses.
Automobile insurance (if either parent still drives).
What to look for: The policy, and sometimes a yearly statement, will tell you what the coverage is and how much gets paid in premiums.
Why it matters: Review the policy to see that they have sufficient coverage for both liability and car damage. You also may want to shop around for better rates.
Home or other property insurance, including renters insurance.
What to look for: Their homeowner's or renter's insurance will probably have both an original policy and yearly statements.
Why it matters: Review the policy to see that they have sufficient coverage for damage or destruction of both the property and its contents. You may want to compare other policies for better rates.
Long-term care insurance, the coverage and other terms of which you should become familiar with as your family members age.
What to look for: Long-term care insurance is issued by a private insurance company and will have a policy with very detailed provisions regarding eligibility for benefits and other conditions. There will also be billing documents showing the monthly premiums.
Why it matters: Getting to know what the policy does and does not cover, and how seniors can qualify for benefits, can help you and them plan for long-term care and arrange it, when the time comes, in a way that maximizes benefit payments.
