Health Care Options After Retirement
What You Need To Know About Medicare
- Find out if you qualify for Medicare.
-
Call the Social Security Administration at 1-800-772-1213 to find out if and when you qualify for Medicare. You'll need to provide your Social Security number and date of birth when you call.
Checklist:
RELATED CONTENT
- Healthfinder®:
- healthfinder
- FirstGov.gov for Citizens: Health:
- FirstGov.gov: Health
- America's Health Insurance Plans:
- America's Health Insurance Plans
- Agency for Healthcare Research and Quality (AHRQ), Choosing and Using a Health Plan:
- Choosing and Using a Health Plan
- U.S. Department of Labor, Consumer Health Plan Information:
- Consumer Health Plan Information
- Aetna InteliHealth®:
- Aetna InteliHealth
You spend most of your life working, setting an alarm each morning, living by deadlines and hopefully saving for retirement. As you approach retirement, you'll need to reevaluate everything from your daily routine and budget to how you will pay for health care in retirement. Most people have heard of Medicare, the federal program that provides health benefits to people 65 and older, as well as certain disabled individuals. Yet, many people wait to become familiar with the specifics of this program even though it is an important part of a healthy retirement. Questions to consider before you retire:
- Will I be eligible for Medicare?
- What Medicare health benefits will be available to me, what is covered, and what health benefits will I have to pay for out-of-pocket?
What is Medicare?
Medicare is a government program that provides health care insurance to people aged 65 years or older, as well as certain disabled individuals. More than 55 million Americans receive this health benefit.
Medicare covers certain basic medical expenses as explained below, but it does not cover everything. It does not typically pay the total cost of covered services or supplies. Work with your doctor to help ensure you're getting the coverage that best meets your health care needs.
Medicare Parts A, B, C and D
Medicare consists of four types of coverage, Parts A, B, C and D. According to the government's Medicare website, most people are enrolled automatically in Medicare Part A without taking any action.
Part A helps pay for inpatient hospital care, skilled nursing facilities, hospice care, and some home health care. Because people usually pay for Part A coverage through a federal Medicare tax while working, most don't pay a deductible or monthly premium after age 65. If you continue to work after age 65, you will continue to pay taxes to Medicare. However, if you or your spouse did not pay Medicare taxes while working, you may still be able to purchase Part A coverage.
Part B helps cover doctors' services, outpatient hospital care, physical and occupational therapy and some home health care. Part B coverage is optional and usually requires payment of a monthly premium. In 2008, Medicare Part B coverage costs $96.40 per month. This monthly premium may vary depending on when you enrolled for Part B coverage and whether the rates increase next year.
Part C is another way to get your Medicare benefits. It combines Part A, Part B, and, sometimes, Part D (prescription drug) coverage. Medicare Advantage Plans are managed by private insurance companies approved by Medicare. These plans must cover medically-necessary services. However, plan can charge different co-payments, coinsurance, or deductibles for these services.
Part D provides coverage for prescription drug benefits. The prescription drug plans will generally require you to pay a monthly premium and co-payment or co-insurance for each prescription you fill. Plans vary by cost, number of drugs covered and pharmacies you can use, but all plans must meet a minimum standard for drug coverage set by Medicare. Medicare prescription drug plans work with all types of Medicare health plans including the Original Medicare Plan, Private Fee-for-Service Plans, and Medicare Advantage Plans (like HMOs). Work with your Medicare plan provider to find the Medicare Part D plan that best meets your prescription drug needs.
What are my health benefits options if I retire before age 65?
Depending on your age and health care needs you may have several benefits options. Review your retirement benefits by contacting your human resources department, company intranet site or health benefits company. If your company doesn't offer full retiree health benefits, you may need to price other group coverage or individual policies to supplement your benefits.
COBRA will cover retirees for up to 18 months before they turn 65. If you retire before age 63 1/2, evaluate your health coverage needs, including doctor visits, prescriptions, and potential long term care coverage. Then consider purchasing an individual health care plan. For more information about your retirement options check out the feature article Daydreaming About Retirement.
