Private Health Care

Posted 06 Jun 2014 by Melissa Allan

Most private health care plans are limited in their coverage. They can be designed to have 100% of prescription drugs covered but keep in mind, the better you design your plan the more it will cost and unfortunately, this coverage can be very expensive, especially in retirement.

The main reason this is so costly is due to the fact there are guaranteed acceptance plans which most people can transition to from their standard employer group benefit plan at retirement. Having said that, for those in elite health they may be better off answering a few medical questions to try and qualify for a better rate.

Keep in mind, no matter what company you look at, all of these products are built with a base minimum coverage such as ambulance and hospital coverage. You cannot just get a basic prescription drug plan so when comparing the costs to Pharmacare it’s not really an apples-to-apples comparison.

When looking at Private Health insurance it is important to note that these plans are renewed each year and your rate can go up every year even if you have a good claim history as the insurers pool the rates based on usage for others in your age band. At age 65, coverage is limited and benefits that were built into the product such as life insurance usually reduce or terminate all together.

You can choose to be insured for dental work, travel insurance, vision coverage, along with other benefits such as chiropractors and massage therapy, etc. My experience is that even if you pay for these additional options, most times you are still not getting reimbursed at 100% and you end up paying additional out of pocket expenses for your co-insurance payment not covered under the core plan.

I do feel it’s important to have some coverage as I think we can all agree that eye glasses, prescriptions, etc...add up but I recommend that you do research before buying this plan and don’t feel you need the best plan. Do the math and see if it makes sense, or give us a call.