Retirement is a time for celebration and reflection as you look back upon your years of hard work and achievement. However, it is also a time to make sure that you have your health insurance in order for your next phase of life, to ensure that you have continued coverage to keep you healthy and happy in your golden years.

I am under 65 and have recently retired — what should I do about health insurance until I qualify for Medicare.

For early retirees, most employers no longer offer health insurance to bridge the gap between retirement and when they become eligible for Medicare at age 65. To close this rift, you may wish to look into your spouse’s plan if they are still working, and see if you can be added on to their coverage. Your spouse will pay more for family coverage, but it will be much more affordable than trying to purchase a private policy, which would run very expensive because of your age and possible health complications.

You may also wish to consider COBRA (Consolidated Omnibus Budget Reconciliation Act), a law that came into effect in 1986 allowing certain employees to extend their existing coverage for up to 18 months after leaving work. The advantage to COBRA is that you cannot be turned down for coverage, even if you have a chronic health condition. The disadvantage is that it can also be very pricey, because your employer will no longer subsidize it and you will have to pay the entire premium yourself.

You can also seek out a group plan through a membership organization such as a church group, union, or alumni association. These plans will be more expensive than the one you had through your employer, because you will be paying the entire premium yourself, however they may be less than private insurance because you will benefit from the group rate, and you will not be rejected because of pre-existing medical conditions.

Finally, you may wish to consider purchasing a private plan until you are eligible for Medicare. Though these plans can be very expensive, particularly if you have a chronic condition, are on medication, or are overweight, more and more companies are offering senior-focused plans which may be an option if you are in good health and able to pay a much higher deductible.

Additonal retirement resources you might find useful

Medicare
Medicaid