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Retiring? Here Are Three Health Insurance Options That You Might Need

Retirement, a much-needed break for everyone after their busy professional life. Spending thirty-odd years running between jobs and dealing with a busy schedule makes you long for this break. However, this time could get stressful, too, if you don’t plan it right. Every detail right from the place you have to live into the source of income, you have to plan it all. The meticulous details are what will make your retirement a stress free one. While most people take all these details into account, they tend to ignore the most important detail of health insurance.

Why do retired people need health insurance?

As long as you are working, your employer will take care of this, and you will be under the group health insurance policy. And in case your employer doesn’t provide health insurance, you can enroll for OBAMA care. However, once you retire, you exhaust both these options.

With the impending old age and increasing health problems, you might drain out all your funds if you don’t plan well enough. If you’re going to retire anytime soon or have already retired but don’t have health insurance, don’t worry.

It’s never too late to sign up for the right plan and secure your health. These plans will come in handy until you qualify for Medicare. You need to be 65 years or have a physical disability to qualify for Medicare. Retiree health insurance is the most expensive, which is why most people opt out of insurance plans post-retirement. However, given that they are more prone to illness, it is advisable to have a health insurance cover to avoid the huge medical bills.

Here are three health insurance plans that are ideal for retired people.


Consolidated Omnibus Budget Reconciliation Act or COBRA is a health insurance cover that applies to people who had health insurance during their full-time employment. If you were a contributor to the employer-sponsored health insurance until one of the seven qualifying events took place. The qualifiers are, death of the employee with insurance cover – family gets the cover, termination of the employee, divorce from the employee with insurance cover, an employee with insurance cover qualifying for Medicare, or a dependent child no longer being dependent on the insured person, etc.

The duration of COBRA cover depends upon the qualifying event and might vary from person to person. It could be for anywhere between 18 to 36 months. COBRA is a legal obligation of the employer with 20 or more employees to provide continued insurance coverage to the qualifying persons. The premium on this type of insurance is relatively higher, as there is no government assistance attached to it.

Federal Exchanges

If you are a non-smoker living in Philadelphia, and around 55 years of age with an average annual income of $50,000 per year in your post-retirement period, there are a few low premium plans available for you. That’s because it exempts them from receiving any federal tax benefits. The lower-income groups receive numerous tax benefits to ensure they have the right cover.

However, if you have an income of $27,000 or lesser, you could benefit from the ACA. Remember, it is essential to find the right cover until you are Medicare eligible. Or else you might end up paying through your nose every month in the form of premium.

Group Retiree Coverage

A Group Retiree Coverage, as the name suggests, is the employer continuing to offer health coverage to the employees after retirement. While this is a rare occurrence, a lot of retired employees get coverage just the same way the actively employed population gets. However, this is not a lifetime engagement. It is a commitment that stays valid for a pre-agreed period or until the employee becomes eligible for Medicare coverage. These insurance covers come at a subsidized premium cost, which makes it the most attractive feature of it.

A former employee who is less than 65 years old, can avail of this at a little to no premium cost. However, they can also get a health insurance cover from their working spouse’s insurance plan. But remember, the group retiree coverage is only for the former employee and not their spouse. So, make sure your significant other has the right health insurance coverage.

These are the top three popular health insurance choices for retired employees. However, there are many other plans out there too. So, make sure you do your research and pick a plan that suits your needs the best.

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