How retirees can make a smooth health insurance transition

Finally retiring?  Congratulations!  Have you thought about where your healthcare coverage is going to come from until you hit that magical age of 65 when you are Medicare eligible? Healthcare, for many, is one of the most important factors in determining when to retire.  Make sure to do some homework and work with someone with a fiduciary standard to help you make sense of the sometimes confusing health insurance environment we live in today.

If you are already 65, your employer may offer a retiree Medicare insurance benefit.  If they do, in many cases it is offered at no cost or reduced cost to you.  If your employer doesn’t offer a retiree benefit, there are multiple options available to you in the Medicare world.  We can explain each option to you in simple terms so that you can make an educated decision on what option is best for you.

If you are under 65, the first thing you should do if you are retiring and currently have group benefits is ask your HR department what the continuation options for health insurance are.  Sometimes, as a retiree benefit, your employer will still continue to offer coverage at no cost or a lower cost to you.  If your employer doesn’t allow you to continue your current coverage as a retiree benefit, he or she must give you the option of COBRA continuation coverage.  This is a mandated benefit and it allows you to keep your current coverage from your employer for 18 months.  The main difference from COBRA to retiree benefit health insurance is that with COBRA, you will be responsible for the entire cost of insurance.  This in many cases is the simplest and most affordable option available to someone looking to retire.  With that being said, it is always in your best interest to do your due diligence and compare with the individual market.

The individual market for major medical health insurance is comprised of off exchange (marketplace) plans and on exchange (marketplace) plans.  The only difference between the two is that inside the marketplace, you may be eligible for a premium subsidy based off your household income.  If your income falls into a certain range, a premium subsidy may be available and could make a plan through the marketplace a viable option.  The marketplace can still be confusing and hard to navigate for some.

We can help you through the entire process of research and choosing the best policy in this exciting time.  My goal is to give clients peace of mind in regards to health insurance in retirement so they can truly enjoy their time.  If you have questions or want help transitioning health insurance, call today to set up an appointment.

This information is for educational purposes only and should not be considered investment advice. Please consult a licensed professional, one with a fiduciary obligation to his or her clients, before purchasing an annuity or any insurance product. Review insurance information thoroughly before purchasing. These products can include hidden fees and commissions.