Issue link: https://www.e-digitaleditions.com/i/1138357
FINANCIAL STRATEGIES GROUP 34 CHAPTER 6 HEALTHCARE 7 . https://www.ssa.gov/oact/progdata/retirebenefit1.html 8 . https://www.ssa.gov/planners/retire/retirechart.html Options Pre-65 Medicare is the primary provider of healthcare for retirees. However, Medicare is not available until age 65. So, the question becomes, if I retire before age 65, what are my options for health insurance? The first option is the healthcare marketplace. The healthcare "marketplace" or "exchange" (healthcare. gov) was created by the Affordable Care Act (ACA) and became fully operational on October 1st, 2013. Insurers are prohibited from discriminating against or charging higher rates for any individual based on pre-existing medical condition or gender and your premium is based on your income. For example, Husband and Wife both age 60, who live in Ingham County, Michigan, with no dependents and made $100,000 in 2023 are looking at $692.04/month to $1,699.70/month for health insurance coverage utilizing one of the gold plans available. This amount doesn't even include co-pays and deductibles, which families will be responsible for. If the marketplace is not an attractive solution, a second option would be to utilize your employer- sponsored healthcare even after you retire. COBRA (Consolidated Omnibus Budget Reconciliation Act) gives employees the right to pay premiums for and keep group health insurance that they would otherwise lose after they retire. You are eligible to keep COBRA for up to 18 months after separation of service. However, you will be responsible for paying not only the employee and employer's portion of the premium but also additional administrative costs up to 2%. It's likely that the cost of insurance will be significantly higher compared to when you were working. Cobra is an attractive solution when the time of coverage needed might