1. Plan Ahead. Plan ahead for your retirement health insurance needs. Americans are eligible for Medicare at age 65, so take this into consideration if you plan to retire at an earlier age.
2. COBRA. If you plan to retire from your job before the age of 65 and are not eligible for Medicare, check to see if you are eligible for COBRA (Consolidated Omnibus Budget Reconciliation Act). COBRA is a federal law that typically entitles you to continue your employer's health insurance coverage for up to 18 months. Check with your state insurance department to learn about COBRA laws in your state.
3. Catastrophic Insurance. If you are not eligible for COBRA, you might want to consider a catastrophic or high-deductible medical plan, which typically carries lower premiums than other individual policies. Keep in mind that people with serious pre-existing health problems - such as heart disease, diabetes or multiple sclerosis - typically cannot get catastrophic health insurance.
4. Major Medical. Before you become eligible for Medicare, you might want to consider purchasing a major medical plan to cover doctors' visits, drugs and hospital care. These plans, which can vary in costs and medical benefits, include indemnity plans, preferred provider organization (PPO) plans, health maintenance organization (HMO) plans and point-of-service (POS) plans.
5. Coverage. Take time when researching individual health insurance plans and learn what kind of policies will provide the coverage you need - then pick the one best for you. Shop around and ask a lot of questions. To avoid purchasing a fraudulent health insurance plan, call your state insurance department and find out whether the insurance agent and company are licensed in your state. Information about how to contact your state insurance department can be found on the NAIC Web site, www.naic.org/state_web_map.htm
6. Medicare. If you are 65 years of age or older and will be using Medicare as your primary health insurance, make sure you understand the different coverage options available to you. When enrolling, you will need to decide whether you want traditional Medicare or a Medicare Advantage plan. Before purchasing a Medicare Advantage plan, find out which hospitals and doctors are in-network.
7. Medicare Supplement. When enrolling in Medicare, you might want to consider purchasing a separate Medicare supplement (Medigap) insurance policy to pay for medical/hospital expenses and deductibles not covered by Medicare. Contact Medicare, www.medicare.gov/, for a list of approved Medicare supplement (Medigap) insurance providers.
8. Prescription Drugs. When choosing Medicare options, you might also want to consider enrolling in prescription drug coverage (Medicare Part D), which will help pay for the cost of medications prescribed by your doctor during treatment. Keep in mind, if you choose to waive this coverage during enrollment, but enroll at a later date, you will pay a penalty fee.
9. Health Discount Cards. Be wary of health discount cards. Discount cards are not insurance! If you are considering the purchase of a health discount card, investigate whether the company is legitimate and whether any complaints have been filed against them. Also research what types of services the discount card covers and whether your physician/dentist accepts the discount card. Contact your state insurance department, attorney general's office and/or Better Business Bureau for more information.
10. Long-Term Care Insurance. Consider purchasing long-term care coverage. This type of insurance covers the cost of services for nursing homes, assisted-living facilities and in-home caregivers when individuals are unable to perform activities of daily living - such as eating, dressing and bathing. However, long-term care insurance isn't for everyone. If you are currently receiving Social Security or expect to have minimal or no retirement savings, you will likely qualify for state aid and should not purchase long-term care insurance. Be wary of advertising that suggests Medicare is associated with a long-term care policy. Medicare does not endorse or sell long-term care insurance.
Source: National Association of Insurance Commissioners
2. COBRA. If you plan to retire from your job before the age of 65 and are not eligible for Medicare, check to see if you are eligible for COBRA (Consolidated Omnibus Budget Reconciliation Act). COBRA is a federal law that typically entitles you to continue your employer's health insurance coverage for up to 18 months. Check with your state insurance department to learn about COBRA laws in your state.
3. Catastrophic Insurance. If you are not eligible for COBRA, you might want to consider a catastrophic or high-deductible medical plan, which typically carries lower premiums than other individual policies. Keep in mind that people with serious pre-existing health problems - such as heart disease, diabetes or multiple sclerosis - typically cannot get catastrophic health insurance.
4. Major Medical. Before you become eligible for Medicare, you might want to consider purchasing a major medical plan to cover doctors' visits, drugs and hospital care. These plans, which can vary in costs and medical benefits, include indemnity plans, preferred provider organization (PPO) plans, health maintenance organization (HMO) plans and point-of-service (POS) plans.
5. Coverage. Take time when researching individual health insurance plans and learn what kind of policies will provide the coverage you need - then pick the one best for you. Shop around and ask a lot of questions. To avoid purchasing a fraudulent health insurance plan, call your state insurance department and find out whether the insurance agent and company are licensed in your state. Information about how to contact your state insurance department can be found on the NAIC Web site, www.naic.org/state_web_map.htm
6. Medicare. If you are 65 years of age or older and will be using Medicare as your primary health insurance, make sure you understand the different coverage options available to you. When enrolling, you will need to decide whether you want traditional Medicare or a Medicare Advantage plan. Before purchasing a Medicare Advantage plan, find out which hospitals and doctors are in-network.
7. Medicare Supplement. When enrolling in Medicare, you might want to consider purchasing a separate Medicare supplement (Medigap) insurance policy to pay for medical/hospital expenses and deductibles not covered by Medicare. Contact Medicare, www.medicare.gov/, for a list of approved Medicare supplement (Medigap) insurance providers.
8. Prescription Drugs. When choosing Medicare options, you might also want to consider enrolling in prescription drug coverage (Medicare Part D), which will help pay for the cost of medications prescribed by your doctor during treatment. Keep in mind, if you choose to waive this coverage during enrollment, but enroll at a later date, you will pay a penalty fee.
9. Health Discount Cards. Be wary of health discount cards. Discount cards are not insurance! If you are considering the purchase of a health discount card, investigate whether the company is legitimate and whether any complaints have been filed against them. Also research what types of services the discount card covers and whether your physician/dentist accepts the discount card. Contact your state insurance department, attorney general's office and/or Better Business Bureau for more information.
10. Long-Term Care Insurance. Consider purchasing long-term care coverage. This type of insurance covers the cost of services for nursing homes, assisted-living facilities and in-home caregivers when individuals are unable to perform activities of daily living - such as eating, dressing and bathing. However, long-term care insurance isn't for everyone. If you are currently receiving Social Security or expect to have minimal or no retirement savings, you will likely qualify for state aid and should not purchase long-term care insurance. Be wary of advertising that suggests Medicare is associated with a long-term care policy. Medicare does not endorse or sell long-term care insurance.
Source: National Association of Insurance Commissioners
Ten Tips Regarding Health Insurance and Retirement
ROBERT M PHILLIPS
Attorney & Counselor at Law