Health Insurance For Retirement
2014 Medicare and Medigap Updates
Health Insurance For Retirement Options
Health insurance for retirement is probably the most important insurance issue you will have to consider as you reach your Medicare eligibility age. Health insurance becomes more important the older we get because as we age the more likely we are to have an illness and the longer it takes to get over it. It therefore goes without saying that health insurance for retirement is very vital if an individual wants to protect themself from excedingly large medical bills.
While you are employed it is usual your employer who provides you with health insurance coverage through a group policy that you can, by law, continue to enjoy 18 months after you leave your employment. Though some employers continue to provide group medical coverage for their employees when they retire, nowadays, with the rising health care costs fewer and fewer employers do so. Therefore the chances that you will enjoy this type of health insurance for retirement benefits are rather low. Many people wonder where their medical coverage will come from when they retire. Fortunately for most, there are health insurance for retirement options to be considered.
Health insurance for retirement at the age of 65 or older may automatically become available to you through Medicare coverage provided by the U.S. government. However, though Medicare is critical, it has several limitations. Medicare does not pay for all your medical expenses. Medicare does not cover the cost of drugs, routine dental work, general physical, eye and hearing examinations, the cost of glasses or hearing aids and medical costs during foreign travel. This means that you could have to cover very high out-of-pocket medical expenses on your own, thus the need for additional health insurance coverage.
Supplementary health insurance for retirement can be purchased from private health insurance companies. This is called Medigap and though the companies that provide it are private, the Medigap plans are government regulated. Medicaid which is a joint federal and state program that assists people with low income with their medical costs is also an option.
Health insurance for retirement is a major concern for workers who retire early as Medicare coverage is only available when you attain the age of 65. This means that early retirees must find other health coverage until they qualify for Medicare. An option for early retirees is continuing their employment group coverage through COBRA (the Consolidated Omnibus Budget Reconciliation Act. They generally must pay the full premiums themselves unlike when in employment where the employer paid part of the premium. Individual health coverage is another, though much more expensive option with very high premiums. In some cases the daunting cost of medical coverage may cause some people to consider working longer than they may have desired.
As you approach retirement, it is extremely vital to plan for your health care requirements because, let’s face it, you will require more health care the older you get. The reality is that the cost of medical and health care will probably continue to rise making it necessary that you look very closely at your health insurance for retirement options.
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