Out with the old in with the new
Retirement means you can stop worrying about company politics, commuting to work everyday, and job promotions, but what it doesn’t mean is that you can stop worrying about your health care. Unfortunately you can’t retire from health care planning, in fact it becomes more crucial when you retire.
When you plan for retirement, you must now ask yourself, “How will I pay for health care?”
Here’s the wrong answer to that question. “I’ll just use the retiree benefits from my former employer when I retire.” According to US News, “only a third of firms with 200 or more workers offered retiree health benefits in 2008.” Only 4% of small firms offer this benefits to retirees. If your former company does happen to offer benefits two situations are likely to occur: 1. You lose coverage because your health insurance agreement includes a clause which allows them to terminate your benefits at any time. 2. Your premium, out-of-pocket expenses, and eligibility restrictions steadily increase over the life of your coverage.
So here’s what to do. When you think health care upon retirement, think Medicare, Medicare Supplement Plans, and prescription drug plans.
Most people retirement after the typical retirement age of 63. Medicare is available to people 65 and older. There are many options available which cater to specific health care needs. Also, Medigap plans can help you save on out-of-pocket expenses.
Although you may be accustomed to relying on employee benefits for health insurance, it’s a whole new ball game when you retire. Medicare, Medicare Supplemental Insurance, and Medicare Part D are a great solution for people 65 and older.
To get more information about Medicare Supplement Insurance plans, talk to one of our Medigap plan representatives today or use our instant quote below.