Undoubtedly, insurance costs are escalating, especially senior citizen health insurance premiums. It has been validated that there has been a 21% increase in health insurance costs during the last 10 years. Unfortunately, health insurance is not an option today, it is a necessity in order to be financially, morally, and ethically responsible. However, there are effective methods that will consequentially minimize the cost of senior citizen health insurance premiums through the judicious use of Medicare, supplementary insurance, decreasing deductibles, lowering elimination periods, and managing prescription coverage issues. Preparation for the physical and medical inconsistencies is essential, but the practice of evaluating the options and making sage coverage decisions is critical.

An American citizen, age 65 or older, is entitled to Medicare health insurance that is available for a nominal premium. This program, if the client has both Part A and Part B, will pay 80% of medical care expenses, after the annual deductible is met. This benefit substantially lowers the cost of senior citizen health insurance as the insured only needs to purchase a Medigap policy. This indemnification will provide benefits that will pay the annual deductible and medical care co-pays, which translate into the savings of more than $2,500 a year. The saving will almost completely cover the cost of the Medigap insurance premiums that will provide the insured will full comprehensive coverage.

The Medigap policy is necessary to cover the "donut hole" or the over $2,000 in prescription costs that must be paid at 100%, out of pocket, until the total of prescription expenses reaches $4,350 (2010), and the 5% prescription drug costs called catastrophic coverage payments are initiated. This insurance is considerably less expensive that private or group health insurance, although most of these programs will design and format supplementary Medigap policies to Medicare.

If, for some reason, the senior citizen chooses to purchase private or group health insurance, in preference to Medicare, the insurance premiums can be reduced through modifications. First, select a higher deductible, rather than the recommended "zero" deductible, which appreciably increases the senior citizen health insurance premiums and the agent's and company's profit margin. A second option is to increase the co-pay for physician's visits and for prescription medicine. The more the insured pays out of pocket, the lower the insurance premium. Changing the elimination period from zero to 30 days may seem insignificant, but the overall premium reduction can be 25%-30%. An accident, illness, and injury rider that will pay an established daily benefit that will offset the cost of the elimination period.

Senior citizen health insurance premiums can be substantially reduced with effort, imagination, and ingenuity.