Essential Guide to Retirement Health Insurance Options

As you approach retirement, securing health insurance is crucial for peace of mind and financial stability. Retirement health insurance typically combines Medicare with a former employer’s retiree plan. Medicare generally covers your expenses first, with the retiree plan supplementing or covering additional costs.

Below are key points to consider about retiree health coverage:

• Employers are not required to offer retiree benefits. Confirm if your employer provides continued coverage after retirement.

If you qualify for retiree benefits, your former employer or union controls the plan details and premiums, and they can terminate the coverage.

Investigate the costs and benefits of the plan, including whether it covers your spouse. Often, coverage limits apply to you and your partner.

Retiree insurance may interact differently with Medicare. It’s vital to understand how your retiree plan works once you’re eligible for Medicare, as it might not cover costs during the Medicare enrollment period.

To maximize your retiree coverage benefits, enrolling in Medicare Parts A and B is essential.

Review your plan’s booklet or speak with your benefits administrator to understand how your retiree plan influences your and your spouse’s coverage. Assistance is available from your State Health Insurance Assistance Program (SHIP) to determine if you need a Medicare Supplement (Medigap) policy.

Federal COBRA rules safeguard your coverage if your former employer declares bankruptcy and another company within the same organization continues providing group health benefits.