3 Facts About Health Insurance Every Baby Boomer Must Know
The leading edge of the baby boomer generation is well into retirement, and as people age, their healthcare needs typically increase. Whether you've already retired or are still in the late stages of your career, you should better understand some key facts about health insurance to make sure that you get the coverage you need. In particular, knowing your insurance options and what kicks in when is critical in doing financial and retirement planning, and depending on your health, you might need to consider changing your retirement plans to avoid lapses in coverage that could devastate you financially.
For those who haven't yet retired, the biggest question is how to ensure that you'll keep health insurance coverage after you quit work. Once you turn 65, you become eligible for Medicare, and most retirees find that Medicare coverage provides enough benefits to compare favorably with the insurance policies they had during their careers. If you're looking to retire before age 65, then you'll want to take into account the gap between your workplace coverage and when Medicare becomes available.
If you have 18 months or less between the time you retire and your 65th birthday, then using COBRA coverage from your workplace plan can be the simplest option. You'll need to be prepared to pay the full premium amount, which will include not only what you used to pay when you were working but also what the employer paid on your behalf. Some people have used federal healthcare exchanges under the Affordable Care Act to get coverage to bridge the gap between retirement and Medicare, but there's a lot of uncertainty about whether that strategy will be available in the future. Those who are married and eligible for coverage under a spouse's policy can also use that option, and that might be the most cost-effective solution.
Source: Fool.com