Seniors lose health insurance savings when enrollment open, data shows

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The open enrollment period for Medicare and Medicare Advantage ends on December 7, but many seniors have not reviewed their health coverage. Even fewer have decided to change their plan, according to a new poll. (iStock)

Open enrollment in Medicare gives eligible Americans the opportunity to review their health insurance coverage options. Shopping on the Medicare.gov The market has the potential to help seniors save on their monthly premiums or choose a health plan with lower out-of-pocket costs.

But since the enrollment window ends on Dec. 7, many Medicare beneficiaries do not revise their coverage during the 2022 open enrollment period. Even fewer actually change their plans, according to. MedicareGuide. A new survey of more than 2,000 Americans aged 65 and over found that:

  • Almost 9 in 10 (88%) have not changed their health insurance plan
  • Three-quarters (67%) couldn’t find a better new plan
  • Only 11% switched from Original Medicare to a Medicare Advantage plan

Even for those looking for a cheaper insurance plan, the rise in monthly premiums has proven prohibitive. Most (85%) who have found a more profitable plan will save less than $ 50 per year when the changes take effect the following year.

With the increase in the price of health insurance plan options, seniors may be looking for other ways to cut costs. Read on to learn more about how to save money in today’s low interest rate environment through mortgage refinancing and debt consolidation.

Browse the interest rates for a variety of financial products in the table below and visit Credible to compare offers that suit your needs without affecting your credit score.

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3 More Ways Seniors Can Start Saving Money Now

Finding a cheaper health insurance plan during the annual election period isn’t the only way seniors can make room for their budgets. Since interest rates are historically low on many financial products, it may be possible to reduce costs in another way. Consider these options:

  1. Refinance your mortgage
  2. Consolidate credit card debt
  3. Compare other insurance quotes

Learn more about each money-saving tip in the sections below.

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1. Refinance your mortgage

Although mortgage rates have risen slightly in recent months, they still remain near the lowest prices. This gives owners the opportunity to significant savings on their monthly mortgage payments when refinancing at a lower rate.

Mortgage refinancing can help you lower your monthly payments by $ 300 or more, pay off your mortgage faster, and save money on interest over time. But the time to lock in a historically low mortgage rate is running out, experts warn. The Mortgage Bankers Association predicts that the average rate on a 30-year mortgage will drop from 3.1% in 2021 to 4.0% in 2022.

If you haven’t refinanced your mortgage yet, there is still time to do so before rates inevitably rise. Visit Credible to compare mortgage refinance offers for free so you can start saving money now.

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2. Consolidate your credit card debt

Credit card interest rates are at all-time highs, says the Federal Reserve, which means carrying revolving credit card debt is now more expensive than ever. If you’re having trouble paying off your credit card balance, consider consolidating that debt into a personal loan.

Personal loans are fixed rate loans commonly used to consolidate credit card debt. Additionally, as credit card rates rise, average personal loan rates have fallen to near record highs, the Fed reported.

Since they offer lower rates than credit cards, borrowers can potentially lower their monthly payments and save money on interest charges over time. A recent analysis by Credible found that qualified borrowers can potentially save nearly $ 2,400 by consolidating their credit card debt with a personal loan.

You can compare the interest rates of debt consolidation loans in Credible’s online market. Then use a personal loan calculator to estimate your potential savings.

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3. Compare other insurance quotes

Health insurance premiums aren’t the only insurance costs that many consumers factor into their monthly budget. You should also consider your automobile, owners and life insurance policies to see if you have the potential to cut costs.

Comparing quotes from several insurance companies can ensure you get a good rate for the coverage you need. This is because insurance rates vary from company to company, and some insurers offer discounts that you are not currently eligible for under your current plan.

Looking for cheaper insurance can save you hundreds of dollars a year. Visit Credible to compare quotes and coverage options for auto, home and life insurance.

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Have a finance-related question, but you don’t know who to ask? Email the Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert column.


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