Health Insurance before Medicare

I always want to keep the site on an upbeat tempo without ever starting to moan and groan about aches and pains. Why? Because I do believe in the “Law of Attraction”. However, I am also a very practical person. Just because I plan on being healthy forever, doesn’t mean that I don’t have health insurance.

Bob Moos of the Dallas Morning News wrote this article, reporting on the issues facing older Baby Boomers who are no longer covered by an employer or group health insurance plan, but are too young to qualify for Medicare coverage.

It seems some entrepreneurs will be finding opportunities with those of us who get caught in this situation. On the other hand, options today are limited.

Comments on Health Insurance before Medicare Leave a Comment

  1. Great article!

    My only issue is assuming an individual health insurance plan is much more expensive than a group plan. Depending on how the group plan is designed an individual policy can actually be more affordable than a group policy if there are no major health pre-existing conditions. Some group policies charge all employees the same rate regardless of age. This is called “composite” rating. In this scenario the group plan will be significantly less than an individual policy for similar benefits in the older age categories. However, more employers are age banding their group plans which has a sliding scale of rates which increase tremendously with age. This means an individual policy might actually cost less.

    The reason “sticker shock” happens is that while you are employed, your employer is required to be paying at least 50% of your group health insurance premiums. Some employers pay the entire cost. This provision is not required after retirement. Some employers will continue contributing. Some won’t. When faced with paying the entire premium on a reduced retirement income, more and more are searching for the more affordable high-deductible health plans in conjunction with an HSA to reduce costs.

    A recent supreme court ruling states that employers are not required to offer continuing health insurance for retirees after age 65: http://www.ahiphiwire.org/News/Default.aspx?doc_id=156510. This could require millions of retirees to search out a new health insurance strategy outside of their prior employer. We’ll tackle that issue at another time.

    Have a Great Day!

    Scott

Leave a Comment

Fields marked by an asterisk (*) are required.

Subscribe without commenting