Retiree Health Insurance
Medicare provides health insurance for millions of seniors in America. But what about those who are ready for early retirement and will no longer have employee health insurance and aren’t old enough to meet the age requirement of 65 to qualify for Medicare?
Thankfully there are many options for those stuck in the golden years limbo. If your spouse has health insurance provided by their job, being added to their coverage is the least expensive option. The premium for family coverage will be higher but you’ll pay less money for better coverage than other plans.
Coverage Options for Retirees
If you're closer to 65 than 55 when you retire, COBRA may be an option for you. It provides coverage for up to 18 months and you’ll be covered until qualifying for Medicare. COBRA is an excellent option for someone with serious health issues because you cannot be refused, no matter what your health condition.
If you’re not looking for a guarantee to be approved, you may want to shop around for short-term health insurance. COBRA requires the entire premium and any additional administrative costs be paid, an amount that equates to close to $400 a month for individual coverage.
Another option for retirees are private plans. Insurance companies are catering to Baby Boomers not yet eligible for Medicare. But buyers beware: If on medication or plagued with a persistent health condition, policies can be expensive. In contrast, for those in good health, some policies offer premiums as low as $200 a month.
Tip: If you’re looking for family health insurance, it may be easier to apply without the family present, especially if your spouse is younger. Health insurance for couples and families is sometimes based on the age of the oldest individual and can increase the cost of the policy. Once a family policy is chosen, be sure to put the policy in the name of the younger spouse. This guarantees they’ll have coverage when the older spouse changes over to Medicare.