Here Is How You Can Opt For Health Insurance If You Are An Early Retiree
Generally speaking, you become eligible for Medicare once you reach the age of 65. Individuals who take early retirement, i.e. before the age of 65, need to seek out a health insurance option that has the ability to cover them and bridge the gap. However, even if you don’t take early retirement, your spouse who is younger than you might require coverage in the meantime until the time for his or her eligibility arrives. Below are some of the most favorable health insurance options you can avail if you have taken early retirement from your job.
COBRA stands for Consolidated Omnibus Budget Reconciliation Act. You can use it only if you possess health insurance at your workplace, and the total workforce is over 20. COBRA will help you extend coverage for a period of 18 months. If you have the eligibility to avail Medicare, your spouse and your kids will receive coverage for a period of 36 months. These time limits can pose a problem for you in the future. There are some downsides of COBRA as well. One of them is that you let go of the subsidy offered by your employer and shell out the entire premium, aside from an administration fee of 2%. Consider each and every aspect and then decide.
Affordable Care Act Exchanges
With the arrival of the ACA or the Affordable Care Act Exchanges, early retirees heaved a sigh of relief. Earlier, these people often found themselves enduring massive health insurance premiums. Older individuals were charged with unimaginable higher rates, and people suffering from serious injury or illness were forced to pay for high medical bills. ACA provides subsidies and has made health insurance much cheaper. Through HealthCare.gov, you can seek out exactly the kind of policy you need. Losing out on your coverage owing to retirement lets you reap the benefits in various cases. You can grab a better deal from ACA than COBRA.
Group Employee Health Insurance
Individuals who take early retirement lose out on the coverage offered by their employers. A few years back, retirees receiving health insurance from large enterprises was a common thing. However, things have changed with time. As per a recent survey, 1 in 5 big companies offers medical benefits to retirees. You need to keep a few things in mind. In case you are 65 or above who are receiving coverage under a health insurance plan of your employed spouse, and the firm has a workforce of over 20 people, you can extend your eligibility for Medicare Part B much longer. Medicare Part B is known to cover a physician’s visit and hence, you will be required to shell out a monthly premium, while Medicare Part A is free as it covers your complete hospital care.
Health Sharing Plans
Also referred to as health sharing ministries, health sharing plans allow members to render each other’s medical bills. These are, in fact, not your regular health insurance and may not prove to be suitable for senior citizens. You don’t get limit coverage as far as your pre-existing conditions are concerned. That might spell risks for the older half of the population, especially those individuals who suffer from a chronic disease. Health-sharing plans can also be disadvantageous for people who have to abide by an expensive prescription as these plans tend to cover the drugs prescribed by the doctor only for a limited period only. Stipulations are many like members must not be tobacco users and have to be a religious Christian who visits the church regularly. Aside from that, sharing medical bills depends on the members entirely. It’s not mandatory and none is bound by law. Nor there is any contract that will compel them to share the bills. It’s imperative for you to go through and realize the restrictions of the plan before you proceed further.
Cheaper healthcare is available abroad, too. Low-cost but quality medical facilities allure a bulk of retirees to move out of the United States. Many European and Latin American countries have earned a good reputation for providing some of the world’s best healthcare provisions. So, decide wisely and choose the path that seems perfect for you. Remember, spending a peaceful retired life is not that easy. You got to take into account healthcare costs before you retire.
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