Many retirees face a challenging financial situation when they leave their careers and transition into retirement. The biggest challenge, however, is covering the health care gap until Medicare kicks in at age 65. Fortunately, there are several options available, including continuing coverage through COBRA or state continuation, using your spouse’s insurance plan, purchasing an individual policy from the health insurance marketplace, or Medicaid.
Unlocking Senior Health Benefits Post-65 and in Retirement
The majority of Americans who have employer-provided health care coverage make the transition from employer-sponsored health care to Medicare at the time they reach full retirement age . Some larger employers offer retiree group health care benefits, which usually consist of a choice of medical, prescription drug, and dental plans. These plans typically include coverage that is more comprehensive than Medicare, with lower deductibles, higher co-pays, and more flexibility in seeing doctors.
These types of plans are often quite expensive, though, which is why many people opt to supplement their Medicare coverage with an individual private health insurance plan purchased through the Check out the article health insurance marketplace. In order to determine whether this is the best option for you, it is advisable to consult with a health insurance expert. A health insurance agent can conduct a complete analysis of your current doctors and medications, as well as the various plans available in your area, to help you select the most cost-effective combination of coverage.
It is also important to consider the impact of your decisions on your long-term care and disability coverage, both of which may be provided by Medicare. It is possible that, depending on the circumstances of your health and family history, you could find yourself in need of long-term care in your later years. The best way to prepare for this is to purchase long-term care insurance before turning 65, if you haven’t already done so.
The first step in determining your retirement health insurance options is to sign up for Medicare during the seven-month initial enrollment period. This window begins three months before the month of your 65th birthday, and ends three months after. If you miss this window, you may have to pay a penalty when you do enroll. For more information about signing up for Medicare, you can visit the Social Security website or contact a local office.