Healthcare options for you after retirement
With escalating health care costs, the companies are reducing coverage or are asking for more pay from employees. This makes it a necessity for retirees to budget for health coverage which indeed turns out to be a hefty job.
If you need to find insurance for yourself, either start your search at the Web site of the Foundation for Health Care Coverage Education (www.coverageforall.org) or call for help at 800-234-1317.
If you received benefits from your former employer provided benefits, you may be eligible to continue coverage under a federal law called COBRA. However, this could be costly because the employer no longer subsidizes the premium.
Again, after the expiration of COBRA benefits, it would not be wise for you to wait more than 63 days to sign up for a policy in the individual market. HIPAA (Health Insurance Portability and Accountability Act) requires that the private insurers must offer some type of coverage after your company benefits expire, even if you have a medical condition. The point to note here is that there is no specification for premiums and also because each state has its own rules, you should contact your state insurance department. If you wait longer than 63 days and have a medical condition, you may not be able to find coverage at all.
COBRA and HIPAA benefits are by far the best options for someone with a serious medical condition. However, there could be various cheap options out in the market for a relatively healthy person.
(Adapted from April 2009 issue of Kiplinger’s Retirement Report)
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