Health Insurance Articles
Health Insurance Coverage And The Transition To Retirement
2010-07-18
Throughout the course of a career, health insurance coverage is typically offered through an employer-sponsored group plan that provides hospital, preventive, diagnostic and prescription benefits. Getting older presents concerns of what is available upon entering retirement. Alternatives are available to meet the needs of retirees that are faced with changes in income and increasing health problems. Health insurance planning is important prior to retirement age.
You need health insurance coverage to maintain good health. Regular medical visits guard against illness and disease and allow you to live a vibrant life. While group health insurance coverage offers financial security, it can become an obstacle the closer you to get to retirement. Here are some steps to make the passage to retirement more secure when it comes to health insurance coverage.
Buying an individual plan can offer many of the benefits of a traditional group plan. Rates are usually based on healthy individuals. Limitations may apply for pre-existing health conditions. Consulting with a state-licensed agent or broker is important when considering individual health insurance coverage.
Continuing your employer-sponsored group coverage is provided under the law, but only for a specified period of time. While this option will provide the same benefits that you received during employment, you will need to pay the full cost of the premium in order to continue coverage.
State and government-sponsored health insurance coverage is available at the retirement age of 65 or beyond. These plans provide hospital insurance at no cost for qualified individuals. For non-qualifying retirees, coverage is still offered as long as a monthly fee is paid. Medical insurance is also available for services such as physician's visits, physical therapy, home medical care and outpatient care for an additional monthly fee. Prescription drug coverage and additional benefits are also available through state and government-sponsored health insurance plans. Limitations apply that will not cover all of your medical costs, leaving you with certain out-of-pocket expenses.
Supplemental insurance is available to fill in the gaps of coverage that your plan does not provide. Plans are available to seniors to help cover the cost of dental, vision and hearing services. Some plans may also provide protection for health costs while traveling abroad.
A health savings account (HSA) offers you the control over your health-related expenses. Costing less than customary copay plans, an HSA allows you to save money, tax free, for future medical expenses. An HSA rolls over annually and is portable. The money can be used to pay for qualified medical expenses, health premiums or assisted living expenses.
Prior to retirement age, take the time to ensure that you have suitable coverage in your golden years. Speak with a health insurance professional for options in your area.
