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When you’ve been working for so long, you get comfortable with your employee benefits, especially your medical cover. When retirement is around the corner, however, you must start thinking of other options. Even when you voluntarily walk away from productive work, you still need to figure out your health care options.
Here are a few plans that will work for you.
1. Use COBRA to keep your employer’s health insurance plan
You might be able to keep your employer’s health insurance plan if you liked it. The program will only apply if there are more than twenty employees at your company. COBRA or Consolidated Omnibus Budget Reconciliation Act gives allows you to continue using your employer’s health plan for 18 months after you retire or leave your job. You would, however, need to cover your entire premium. The insurance company may even add a 2% administrate cost.
2. Go for Medicare
Medicare is only available to you after you reach a certain age, and if you meet certain conditions. For instance, you have to be a US citizen or have lived legally in the United States for at least five years. You or your spouse must have contributed to the Social Security taxes for ten years for you to start receiving disability and Medicare. If you’ve been working for at least ten years, you are in the clear. If you are already receiving disability fund, the SSA will automatically enroll you for Medicare after you receive benefits for two years. You will, however, only be eligible for Part A and B but you are eligible to enroll for Part C and Part D. If you are under 65 years, Part C is your best bet, but in some cases, a combination of the traditional Medicare (Part A and B) and Part D works best. Always make sure you understand all Parts before you subscribe.
3. Sign up for Health Insurance Marketplace
Health Insurance Marketplace has great healthcare plans you can sign up for. Under the Trump administration, market place insurance plan can’t reject you if you have pre-existing conditions. However, some plans can go for up to $1,000 a month, which is not so ‘affordable.’ Don’t be in a hurry to choose. Instead, shop around and get the price with the most benefits. You may, however, be eligible for lower costs through federal subsidies if you earn a certain income.
4. Take a private healthcare plan
There are tons of insurance companies with great health policies you can look at, but because they are so many, you might need to take your time to choose. Talk to an agent, and they will explain the best plan based on your needs and finances. If you are retiring before your spouse, check if you can list yourself as a dependent on their employer’s health plan. If they do, check what their requirements are and what the premium. Nothing is more important than being healthy, and while things deteriorate as you age, having a healthcare plan will make things easier for you.