Health Care Coverage Options for Retirees

Health Care Coverage Options for Retirees

Health Care Coverage Options for Retirees

Insurance (MP) Undoubtedly, one of a retiree’s greatest obstacles to retiring before age 65 is finding affordable health care coverage. The Affordable Care Act has forced everyone to reconsider their coverage in the United States. For retirees who plan to spend most of their time in the U.S., there’s not much you can do except budget for health insurance and health care expenses. You’re going to need everything from routine annual checkups including eye care, colonoscopies, full physicals and lab work, to pharmacy visits.

If you’ve got retiree health benefits, you’ll be covered under the health care law. You won’t need to pay a penalty that people without insurance must pay. Bottomline you need to be aware of the different health care options. So, what your story?

Individual Health Care Coverage

Shop around carefully when choosing an individual insurance policy. Price points to consider include premiums, deductibles, co-pays, coinsurance, the annual limit you should pay out-of-pocket before insurance covers everything, and the record of annual premium increases. However, the price of a policy shouldn’t be the only thing. “Review your family’s health history and make sure you really are buying a plan who would provide the benefits you need when you’re diagnosed.

Check whether your preferred doctors are in-network and whether pre-approval is needed for procedures. “Seek advice from the state insurance regulatory agency to see what complaints exist against that insurance company. “Use the internet and find out what other people using it have to say.” You can compare many insurance options in your area at healthcare.gov.

Retiring before age 65 without health care coverage

Most workers won’t receive retiree health benefits from their former employer. Even when they do companies can generally increase out-of-pocket costs or even revoke retiree health benefits at any time. Suppose you retire before you’re 65 and lose your job-based health care coverage when you do, you’ll need to buy a plan in the Health Insurance Marketplace. Losing health coverage qualifies you for a Special Enrollment Period. This suggests you can enroll in a health plan even if it’s outside the annual Open Enrollment Period.

For people who want to enroll because you lost your job health care coverage, visit this Special Enrollment Period page, enter your ZIP code, and select the button at the bottom that says you know you qualify for a Special Enrollment Period and want to apply. They’ll help you to apply.

Retiring with health care coverage

If you’ve got retiree health benefits, you’re considered covered under the health care law. You don’t have to pay the penalty that people without insurance must pay. Should you have retiree coverage and instead want to buy a Marketplace plan, consider:

  1. You can’t get premium tax credits and other savings based on your income. This is true only if you’re actually enrolled in retiree coverage. If you qualify for but are not enrolled in retiree coverage, you may qualify for premium tax credits and lower out-of-pocket costs dependent on your household size and income.
  2. Some employers will allow you to purchase COBRA coverage. The premiums are usually high, however, and the typical coverage lasts for just 18 months. But COBRA coverage could enable you to retire at age 63-1/2 if you’re ready in all other areas.

Other Health Care Coverage

In case your spouse is still working, you may be able to get health insurance through his or her employer. You will generally need to request enrollment within 30 days of losing eligibility from your previous health plan.

Tell us, how ObamaCare is working out for you?

Don Briscoe
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Don Briscoe

Finance educator, advisor, and leading voice in the global financial literacy movement.Founder and editor of MoneyPacers.com.He lives and enjoys life with his family in New York.
Don Briscoe
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