Retirees Forced to Use Unsecured Loans to Cover Health Care

How Medicare works

Many older Americans are finding unsecured loans more helpful in handling health care costs than Medicare. Medicare rules these days are difficult to understand. Most people in today's world are not retiring at 65. That opens the door for a lot of confusion regarding the rules of how Medicare pays out. Senior Americans can't get into the Medicare system when they want. The simplest way to opt in is doing so when you turn 65 years old and people already collecting Social Security are automatically put into the system. But the new wave of seniors who continue working past their 65th birthdays are having problems with enrollment.

Over 65-years old and still employed

Those who continue to work and stay with their employer's health care plan end up with limited options regarding Medicare. There are strict deadlines for enrollment and fines to be aware of. Worst case scenario is going without coverage at all until Medicare begins. Barbara Gardner of Austintown, Ohio, continued on her employer's health care plan after her 65th birthday. She said, "My employer's plan offers much better coverage." Though in the beginning her decision made sense, she is now having a difficult time with coverage. According to Medicare rules, people must enroll within eight months of leaving employment. Because of this, Gardner's next opportunity to sign up is in January of 2010, but she won't be covered until July. Her employer's health care plan is over in March and that leaves four months with no coverage. In addition, there is a penalty for missing the deadline that increases her premiums by 10%. She said, "I don't know what I am going! to do…I can't afford an individual policy for the four month lapse." … click here to read the rest of the article titled “Retirees Forced to Use Unsecured Loans to Cover Health Care“