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When you think about retirement, you probably think about saving enough money to enjoy your Golden Years. Leaning on a substantially funded nest egg allows you to pursue a few items on a bucket list that can include enjoying a new hobby and traveling to a place you only dreamed about while you participated in the workforce.

Retirement is many things to many people, but what it should mean to each one of us is taking care of our health. In other words, you need to prepare for health insurance and retirement at the same time.

Understanding your healthcare choices is often the number one hurdle to jump over for professionals that are ready to take the big leap into retirement. If you have reached the magical age of 65, you more than likely qualify for Medicare, but does the federal government program cover all of your healthcare needs?

Whether retire before you turn 65 or call it a career at 65 or older, you have several healthcare options that cover your needs without you having to dig deep into your retirement funds.

Health Insurance When You Retire Before 65

Because of the landmark Affordable Care Act (ACA), you cannot be denied healthcare coverage for a preexisting condition if you retire before you turn 65 years old. You purchase an ACA-sponsored health insurance plan through your state’s Health Insurance Marketplace, which can receive funding through or a state-managed site such as the one established in California.

Plans offered by the ACA for professionals that retire before 65 must provide 10 healthcare services, such as preventive, emergency, and prescription medication services.

Most ACA health insurance plans are higher than the average cost of health insurance. However, you can control the cost of an ACA health insurance plan by choosing to go with a policy that includes a high annual deductible.

Company-Funded Health Insurance

Not long ago, most employees received health insurance coverage in retirement from their employer. However, the number of employers offering health insurance for retired employees has significantly declined. Nonetheless, your employer might offer you the option to continue your health insurance coverage into your Golden Years. This is especially true if you work a job in the public sector of the national economy.

When you start planning finances for retirement, contact your employer’s human resources department to determine whether you have coverage for health insurance. If you receive employer-sponsored health insurance in retirement, you also need to know how much you can expect to pay each month for premiums. You might qualify for health insurance in retirement under the Consolidated Omnibus Budget Reconciliation Act (COBRA) as well.

Medicare and Retirement

Working at least 10 years and paying Medicare taxes during that time can make you eligible for Medicare health insurance. You can also qualify for Medicare coverage before you turn 65 years old if you suffer from a disability. Medicare consists of four parts. Part A covers inpatient care, with part B covering all other elements of healthcare services. Part D, which you get through a private insurance company, provides you with prescription medications. Part C lays out the rules for receiving alternative healthcare coverage from what Medicare offers.

Medicare coverage often is not enough to address healthcare issues for retirees. This means you might have to select more coverage to take care of your healthcare needs. Medicare supplemental coverage, which also goes by the name Medigap, can fill the financial holes for Medicare health insurance coverage. You also can choose a Medicare Advantage plan, which is the plan established by Part C of Medicare.

Review Your Options Before the Start of Each Year

Like you should do with your investment options in retirement, you should annually review your health insurance options after you settle into your Golden Years. Conducting an annual review of your health insurance coverage does two things. First, you adapt to your changing health conditions, which for older people frequently changes without much advance notice. Second, you remain current with the healthcare laws passed at both the state and federal levels.

If you are not sure about how you should move into your retirement years with health insurance, reach out to a health insurance broker to educate yourself about your many options.

Find the Right Health Insurance Plan for Retirement

Planning for retirement requires you to create a plan years before you decide to leave the workforce. Not only do you have to set aside a nest egg that lasts through your retirement years, but you also have to plan for health insurance coverage. There is not a template for acquiring health insurance in retirement. You have to consider your healthcare needs, as well as how much you can afford in out-of-pocket healthcare costs.

Our free service gives you access to an independent network of national brokers who have the experience and expertise to design a plan around your needs and budget. Our network of brokers will tailor a complete solution for your health coverage needs.

Ready to get started? Simply request a no obligation health insurance quote here.