For some people, health care costs after retirement aren’t a huge consideration when they’re doing financial planning. That’s because some employers offer retiree health benefits, which are used to help cover medical costs after Medicare.
But not as many as in the past. According to CNN Money, it has become a “huge financial drag” for American employers to pay for health insurance, so fewer companies are offering retiree benefits1.
For those individuals who do still utilize retiree health benefits from their employers, that’s not coverage they can count on lasting forever. According to Medicare.gov, “Employers aren't required to provide retiree coverage, and they can change benefits or premiums, or even cancel coverage”2.
So when retiree coverage changes dramatically or is canceled altogether, many are left looking to replace their retiree health benefits.
Medicare Supplement Plans
At retirement age (age 65), individuals are generally eligible for Medicare Part A – hospital insurance – and B – medical insurance (visit Medicare.gov to learn more about Part A and B coverage). Medicare, however, does not cover all hospital and medical expenses.
In order to help cover costs Medicare does not cover, many people opt to get a Medicare Supplement plan.
Preparing for your health needs is the best strategy. According to Forbes.com, “The point of retirement planning is to enjoy your golden years, and you can do that more effectively if you aren’t worrying about how to cover medical expenses” 3.
- Ultimate guide to retirement , February 6, 2019
- Retiree insurance, February 5, 2019
- How To Make Health Insurance Part Of Your Retirement Planning, February 5, 2019
Categories: Group Retiree Supple Health, Insurance, Medicare Supplement