Choosing the Right Health Insurance for Retirees Over 65: A Step-by-Step Guide
One of the biggest financial challenges that come with early retirement is determining how you’ll pay for health care. After all, your employer-provided health coverage is likely to end at retirement. In fact, only 21% of large employers offer health benefits to retirees. That means that for most of us, finding the best health insurance plan in retirement is a matter of personal research and careful planning.
For many, Medicare will be the best option. After all, you’ve already paid into the system through a Medicare tax on your income during your working years. And as retirees, you can reap the rewards of that investment. Medicare provides a variety of options for supplemental insurance that will allow you to customize your coverage to your individual needs. But navigating the Medicare system can be daunting for someone who has never had to shop for healthcare before. This is especially true for those who retire before the age of 65, when Medicare eligibility kicks in.
In that case, you’ll want to explore your options in the private marketplace. While the ACA has made it easier and more affordable for seniors to find health insurance on their own, it’s still a complicated process. It’s essential to consider your current financial situation and your projected future income in retirement before shopping for a plan. For example, you’ll need to factor in any money that may be in your checking or savings accounts Go to the post when calculating your eligibility for premium subsidies.
Moreover, you should remember that the monthly premium for your chosen plan cannot exceed a certain percentage of your household income in order to be considered “affordable.” For 2023, that number is 9.12%. If you expect your income to be significantly lower after you retire, it’s a good idea to consider Medicaid or a low-cost private marketplace plan.
Another option is to sign up for COBRA, a federal program that allows you to continue your current healthcare coverage for a limited period after your employment ends. But it’s important to keep in mind that COBRA is expensive and the coverage typically runs out quickly.
Ultimately, the best strategy is to contact your human resources department as you approach retirement to learn more about your options. They can provide you with information and answer your questions regarding insurance, including Medicare eligibility and the cost of premiums. In addition, you can also ask your human resources representative if you can take on a part-time job that offers health insurance in the meantime to bridge the gap until Medicare kicks in. Alternatively, you can shop for a private health insurance plan through the Marketplace during the open enrollment period, which runs from November 1 to January 15. Be sure to carefully test your step-by-step instructions and gather feedback before rolling them out to users. Using a SaaS digital adoption tool with built-in step-by-step templates will simplify the process and help you create guides that your customers will love using.