Wednesday, January 5, 2011

Health Insurance After Retirement

Most workers receive health benefits while employed. Lately, due to the economy, many employees are without health insurance after retirement benefits or have to pay for all or part of the cost. If an employee retires, so do the health benefits unless you were employed with a municipality or union that carries extended health benefits. So, many employees are extending their retirement to 65 to receive Medicare or stay on a spouses' medical coverage.

The Consolidated Omnibus Budget Reconciliation Act of 1985, also known as COBRA, requires employers with health plans and employ 20 or more employees must offer coverage to workers who leave the employer for up to 18 months and 29 months for disabled workers. These employees must pay into COBRA when they are separated to keep health insurance during this time period.

So, after 65, Medicare, health insurance after retirement, becomes available. Even if you don't want it, (you must be covered by another policy on your own or spouse) you must decline Medicare. If you don't and apply for it at a later date, you will be penalized by paying a higher premium. As Medicare, health insurance after retirement, is very important for us to have, it will not pay for everything. You may have to supplement with additional insurance. So, you still have to comparison shop. All insurance must comply with the National Association of Insurance Commissioners to conform to uniform coverage provisions.

If you can't find a policy (group or individual) health insurance after retirement, see if any professional or alumni association you can join or are a member of offers coverage. Start a part time business. In some states, companies can apply for group insurance as one and receive group rates.

Many financial specialist and planners say the best option for health insurance after retirement may be to return to work part time for a company that offers benefits to its part time employees.