Importance of Prescription Drug Coverage in Senior Citizen's Plans

Posted on: Aug 21, 2024 | 3 mins | Written by: HDFC ERGO Team

Importance of Prescription Drug Coverage in Senior Citizen's Plans

Prescription Drug Costs in Senior Health Plans

A healthcare policy offers a host of benefits to policyholders and eases their worries during medical emergencies. While this insurance product is important for all, it is crucial for senior citizens susceptible to illnesses and injuries. Some age-related conditions require long-term treatment and regular medication. If you have limited retirement income and savings, the cost of medication itself can be a huge financial burden. Keeping this in mind, the cost of prescription drugs is an important inclusion to consider when you are buying senior citizen’s health insurance. Let’s talk about this in detail.

Increasing cost of prescription drugs

Thanks to medical inflation, the cost of prescription drugs has increased significantly over the past few years. Some other reasons that contribute to the increasing cost of prescription drugs are —

1. Monopoly:

The existence of a monopoly in the pharma industry is one of the primary reasons for the exorbitant costs of prescription drugs. There are no alternatives available for some medicines, and lack of competition contributes to high prices.

2. High cost of development:

Developing medicines or drugs is a long and expensive process. The estimated cost of developing a new drug is over INR 2 billion. Hence, manufacturers increase the prices of medicines every few months, and the end consumers are forced to shell out big bucks from their pockets.

3. Treatment of life-threatening conditions:

People suffering from severe health conditions are willing to spend on expensive medicines to improve their health and overall quality of life. The high and inelastic demand for certain lifesaving drugs also increases their final cost.

How prescription drugs can become a financial burden for senior citizens

The increasing costs of prescription drugs can cause a significant financial burden to senior citizens suffering from ailments that require long-term treatment and medication.

For instance, a senior citizen suffering from diabetes will require long-term medication and care. The high cost of insulin and other prescribed medicines can take away a significant part of their savings every month.

Why inclusion of prescription drugs in your health insurance is necessary

The following are some reasons to include the cost of prescription drugs in senior citizen’s health insurance policies —

1. Financial assistance:

Costs of medicines are increasing by the day, so having a health insurance policy that covers the cost of prescription drugs can ease your financial strain. This is especially true for conditions that require expensive medication and long-term treatment.

2. Quality healthcare:

If you undergo a medical procedure, diagnostic tests, and other therapies, your healthcare practitioner may prescribe drugs important for your treatment and recovery. If your senior citizen’s health plan covers the cost of these prescription drugs, you won’t have to worry about paying huge bills from your pocket.

3. Better health:

If your health insurance policy covers the cost of prescription drugs, you won’t have to think twice before buying expensive medicines. Taking the prescribed medicines regularly can improve your health and quality of life.

Conclusion

Age-related conditions and other health issues can make you dependent on medications. If you get diagnosed with a condition like diabetes or heart disease that requires long-term treatment, you will have to spend a significant amount on the prescribed drugs. This will take away a part of your savings every month and create financial strain over time. However, if your senior citizen insurance policy covers the cost of prescription drugs, the insurer will reimburse the bills and ease your worries. So, look for this inclusion in your policy or opt it as an add-on if you can.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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