Medigap Needed To Supplement Inevitable Health Care Cost Increase Over Next Decade.
Health care expenses will increase by about 72% over the next decade say Analysts who anticipate a 7.2% per annum increase in health care costs. Another trend within the new government projections is an ever-growing reliance on the government to foot the bill for health care. By the end of the next decade, the government will pay for about half of the nation's medical costs. The other half may need Medigap Insurance to supplement out-of-pocket escalating costs not covered by Medicare.
Especially seniors need to be aware of the predicted increases in the two main health sectors that apply to them. The country's aging population is expected to drive increases in two key areas of health care spending: nursing homes and home health. Spending on nursing homes will grow from $121.7 billion in 2005 to $216.8 billion in 2015. Home health will grow from about $49 billion last year to $103.7 billion in 2015. It represents the nation's fastest-growing sector in health care.
"Although Medicare covers many of the common medical requirements, there are many things that it does not cover and this is where Medigap or Medicare Supplement Insurance becomes vitally important" said David Thau, a well known California insurance advisor and founder of 'Keep It Simple Insurance'. " Medigap is specifically designed to provide reimbursement for the out-of-pocket costs that Medicare does not cover. Prediction is always a better alternative to hindsight so long term care insurance should be examined long before it is needed to avoid the problems of these increasing costs" he added.
President Bush recently urged Americans to confront the rising cost of health care. In his State of the Union address last month, the president pushed health savings accounts, or HSAs, and the high-deductible insurance plans that go with them. For a younger generation this is a good strategy, however for seniors, a Medigap policy would probably be more appropriate to cover their out-of-pocket expenses.
The 7.2 percent annual increase in health care costs over the coming decade that analysts forecast is in line with the 7.4 percent increase in 2005, but the overall economy is projected to grow at a rate of only 5.1 percent over the coming decade, which means health care will play an ever-growing role and we should be aware of the fact that there is a shortfall that needs to be covered. Medigap Insurance serves that purpose and should be seriously considered by every senior.