Most Americans, when they think about retirement, don’t give much thought to health insurance. After all, Medicare will take care of everything, right? Well, not exactly. First off, if you’re lucky enough to retire early, you will not qualify for Medicare until you reach the age of 65. Also, many will choose to get a Medigap policy to cover expenses not covered by Medicare.
As insurance costs have gone up for employers, so it’s not terribly surprising that the percentage of large companies that provide health benefits for retirees has dropped from 66 percent to 35 percent. COBRA benefits will, of course, be available right after you retire, but it only lasts for 18 months and it tends to be very expensive, compared to most employer-backed health plans.
If you are able to get insured through your employer after retirement, one recent survey indicates that you might expect to pay $552 per month in insurance premiums until you sign up for Medicare, then you could still expect to pay $227 per month afterward. Obviously, this varies based on the employer, the insurance company, your age and your health. Without any help from your employer, your health insurance cost after retirement could be considerably higher.
For more information about health, contact HR Solutions & Brokerage, based in Lakewood, Colorado and serving you and your needs in Colorado and over 20 other states.