How to Secure Early Retirement Health Insurance without Breaking the Bank
Are you planning to retire early but concerned about securing health insurance for your post-retirement life? If so, you’re not alone. Health insurance is one of the biggest expenses retirees face after leaving the workforce, and it can be especially challenging for those who retire early.
In this article, we’ll explore some strategies to help you secure early retirement health insurance without breaking the bank. We’ll begin by discussing the challenges of finding affordable health insurance for retirees. Then, we’ll look at some potential solutions to this problem.
Challenges of Early Retirement Health Insurance
Retiring early, before reaching the Medicare age of 65, can be challenging when it comes to health insurance. This is because most retirees under 65 are not eligible for Medicare. Additionally, private health insurance can be expensive and oftentimes unaffordable.
Another challenge in finding health insurance as an early retiree is pre-existing conditions. Older adults are more likely to have pre-existing conditions, which can result in higher premiums or being denied coverage altogether. This can be especially difficult for early retirees who may have left their employer-based health insurance coverage behind.
Potential Solutions
Despite these challenges, there are some potential solutions for early retirement health insurance. One option is to consider COBRA coverage. COBRA is a federal law that allows you to keep your employer-sponsored health insurance for up to 18 months after leaving your job. However, the premium for COBRA can be high, as you’ll be responsible for paying the entire premium without any employer subsidy.
Another option for early retirement health insurance is to purchase coverage through the Affordable Care Act (ACA) marketplace. The ACA offers subsidies based on income, which can make coverage more affordable. You can also purchase a catastrophic health insurance plan through the marketplace, which provides coverage for severe medical events.
If you’re married, another option is to get added to your spouse’s employer-based health insurance plan if they’re still working. This can offer coverage at a much lower cost than purchasing a separate plan on the marketplace.
Finally, some early retirees may choose to delay their retirement until they reach Medicare age. This can be a practical option if you can continue to work without negative impacts on your health and well-being.
Conclusion
Securing early retirement health insurance can be challenging, but there are potential solutions to consider. COBRA coverage, ACA marketplace plans, spousal coverage, and delaying retirement are all potential strategies to help you stay insured without breaking the bank. Whichever option(s) you choose, it’s essential to plan ahead and explore all of your options. With the right planning and preparation, you can enjoy a healthy and happy retirement without worrying about the high cost of medical care.
