Health Care Plans For Retirees Under 65
If you plan on retiring before reaching 65, health care coverage will need to cover you until Medicare kicks in. Your options for coverage could include continuing employer coverage via COBRA or state continuation; purchasing plans through the public marketplace (often with premium tax credits and subsidies based on income); or taking out short-term policies.
COBRA
As soon as you turn 65 years old, retiring employees have three health care coverage options to consider when transitioning out: COBRA (Consolidated Omnibus Budget Reconciliation Act), private plans or Medicare. COBRA provides former employees the ability to keep their previous healthcare coverage for up to 18 months after leaving an employer’s group insurance; it offers similar benefits while holding costs down; however, you will be responsible for paying full actuarial cost plus an administration fee of 2% of coverage costs.
Alternative solutions exist, however. One such is buying health insurance through the public marketplace established by the Affordable Care Act (ACA). This can provide access to lower costs than COBRA does while potentially qualifying you for premium tax credits that make this option even more accessible.
As well as these options, retirees also have other choices available to them if their spouse remains employed: joining their health insurance plan can often be less costly than COBRA; particularly if eligible for subsidies from the ACA. Finally, Medicare enrollment opens three months before your 65th birthday and closes three months afterwards; no matter which plan is chosen it is important to plan carefully for high medical expenses.
Employer-sponsored insurance
Retirees who are still working may be eligible to get coverage through their employer, which typically subsidizes it and covers part of or all the cost of premiums. Early retirees may also enroll in their spouse’s plan or government assistance programs like Medicaid.
State to state, retiree health benefit coverage can differ in both quality and quantity. According to studies conducted over time, studies indicate that employer-sponsored coverage continues to decrease and this trend may continue in coming years due to rising costs in the economy and overall.
Retirees have several options when it comes to health insurance options for themselves as retirees, beyond employer-sponsored plans and marketplace health plans. Individual and marketplace plans provide a range of choices ranging from greater coverage options and lower premiums; many plans are available through the Affordable Care Act marketplace and low to middle income individuals may even qualify for subsidies to lower costs further.
Early retirement health insurance can be an intimidating prospect, so let eHealth’s licensed agents guide you through this complex process of finding a pre-Medicare plan that fits both your budget and coverage requirements. In addition, we can compare options and uncover discounts or incentives available such as wellness programs or preventive healthcare that might be available.
Private health insurance
As soon as you retire prior to age 65, it is crucial that you consider how and where you will access health care. Medicare doesn’t take effect until this age; without additional coverage costs could become significant. Luckily, retirees under 65 who want access to affordable health care have several options at their disposal including state health insurance marketplaces, continuation programs like COBRA/your state continuation program/using spouse plans as well as Medicaid.
No matter which plan you select, it is essential to remember that premiums and out-of-pocket costs depend heavily on your income level. Early retirees who qualify can often qualify for government subsidies that reduce monthly premiums or out-of-pocket costs; use eHealth’s health insurance comparison tool to find plans with optimal value that fit both their needs and budget.
The appropriate plan should include access to a large network of doctors and hospitals within its coverage, which will save money on out-of-pocket costs as well as annual checkups and preventive care visits. It should also offer competitive rates with 24-hour customer service available – be sure that it fits within the Medicare Part D prescription drug benefit!
Short-term insurance
Short-term insurance offers an ideal solution for retirees under 65 who require coverage until Medicare becomes available. It usually involves an easy medical underwriting process and excludes preexisting conditions; yet can be more cost effective than long-term plans.
Retirees under 65 who wish to make early retirement and have substantial savings may benefit from purchasing insurance through their spouse’s employer, which allows access to their network of doctors and pharmacies.
Other options for retirees under 65 include COBRA and individual and marketplace health insurance policies. COBRA is a federal law that allows former employees and their dependents to extend their existing group health plan up to 18 months post-separation from an employer, but can be costly and may not cover all healthcare costs.
Individual and marketplace health insurance plans are an economical choice for retirees under 65 who are in good health, especially those covered under the Affordable Care Act (ACA). These plans offer different levels of coverage at various prices; depending on your income level you may also qualify for subsidies that reduce premium costs significantly.
As a retiree under 65, finding health insurance requires exploring various options, from purchasing private coverage directly or taking advantage of a spouse’s employer-sponsored plan, to using public assistance programs like Medicaid. Your aim should be to find the ideal plan that meets your specific circumstances.