When Covered California is Better Than Medicare

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It’s never too early to start planning for retirement, in fact, healthcare planning is an integral part of a retirement plan.  A good healthcare plan helps a person enjoy their retirement by keeping their mind and body healthy. The question of when is Covered California better than Medicare is important to take into consideration when shopping for plans. There are certain situations when a person might find Covered California to be a better choice for their healthcare in retirement. Medicare is the federal health insurance program for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant, sometimes called ESRD).

One reason that a Covered California plan might be the best option is if the individual does not qualify for Medicare.  There are several reasons a person might not qualify for Medicare one being if the person is under the age of 65 and has no disabilities.  Another reason is if the person or their spouse did not pay into Social Security in their working years. If the individual or couple is below a certain income, Covered CA might be a better choice. If a person needs temporary insurance while waiting for approval for Medicare because of disabilities, a Covered CA plan might be a good option.

Usually if someone is eligible for Medicare  (even if they do not enroll in it ) they cannot receive tax credits to help them pay for a Covered California health plan. If a  person chooses to enroll in a Covered California health plan instead of Medicare and then enroll in Medicare later, they may have to pay a late enrollment penalty. Medicare Part A has a premium: However, if someone qualifies for Medicare but has to pay a premium for Part A and does not enroll in Medicare Part A, they may be eligible for a Covered California health plan. Depending on a consumer’s income, they may be eligible for premium assistance and cost-sharing subsidies for the Covered California health plan.

An individual who has a permanent disability, but is not yet eligible for Medicare due to the two-year waiting period for people receiving SSDI payments, may purchase health coverage through Covered California. Depending on income and if otherwise eligible, the individual may get help paying for a health plan through Covered California or get low- or no-cost Medi-Cal.

There are certain situations when a person might find Covered California to be a better choice for their healthcare in retirement. Our agents can help analyze your particular situation and help you find what your best options will be.

Give us a call at 1-844-366-5126



AUTHOR - Ali Nagy