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Getting Health Insurance When You Retire

Those of us who have had lengthy careers with good employers have most likely never needed to worry about health insurance plans, as good employers will consistently reward their loyal employees with health benefits. If you’re approaching retirement age, however, you may need to evaluate your options when it comes to a health insurance plan for your retirement.

Below we offer a few tips to help you in this process!

1. Compare your options

The Affordable Care Act means that those retiring before the age of 65 cannot be denied health coverage for any pre-existing medical conditions. Despite being named the “Affordable” Care Act, its supposed affordability may seem rather steep to some people. Although you can get coverage, retirees between the ages of 55 and 64 will usually be paying at least $1,000 per month in costs. Although President Trump may modify the healthcare system, this aspect is likely to stay the same. This is potentially good news for those planning to retire between the ages of 55 and 64.

Those aged 65 years and older are eligible for Medicare, though there will be options that you will have to decide between. You have regular Medicare or the Medicare Advantage Plan, for example, each of which has their own associated advantages and disadvantages depending on your circumstances. Medicare.gov is full of information, though talking to an insurance agent will help you to make an informed decision.

As you compare your retirement healthcare options, be sure to account for general healthcare costs every year. Your insurance coverage may cover a lot of things, but you should leave an additional $10,000 per person per year for other costs such as dental and premiums.

2. Discover group health retirement benefits

Before you do anything else, make sure that you examine your existing healthcare benefits and find out how they change (or go away entirely) upon retirement.

You may, for example, find that you have to option of continuing with your group plan. Sometimes you may have worked with an employer for enough years to receive retirement benefits. Additionally, you may reach an age which makes you eligible for certain health insurance benefits regardless of your past service. If necessary, go to insurance workshops and study the fine print on your employer’s health insurance policies for retired former employees. If you find that your employer doesn’t offer health benefits to retirees, you should check to see whether you can stay on the current plan in accordance with COBRA provisions.

3. Frequently review your plan choices

When fall’s open enrolment comes around, you should check to make sure that you’re getting the best bang for your buck with your health insurance plan. Plans change all the time, along with their fees and associated health benefits. An insurance agent can help you to find a plan that fulfills your retirement needs without plunging your bank account into the red.

4. Speak with an agent

If you need help, you can always speak with a health insurance agent who has ties to your area’s major health plan providers. Many health insurance agencies have retirement specialists who assess retirees’ health insurance options for a living. An insurance agent will compile information about your medical records and income, providing you with a list of recommendations based on your needs and annual budget. Working with a health insurance agent allows you to feel at ease, knowing that you’re working with someone who understands all the nuances of insurance policies and documents.

We’re always looking out for insurance information that affects your finances and your health too. Get in touch with us 24/7 and we will answer any insurance-related questions you may have.