If you’re planning to retire early, or you’re currently in retirement, you need to carefully consider how you’ll manage your health care costs. While many people are concerned about the cost of private insurance in retirement, there are several options to help make it affordable, including the ACA marketplace and Medicaid.
Some employers offer to continue health insurance coverage for their retired employees. These plans are typically similar to the ones they provide for their active employees, and usually subsidize around 70% to 80% of the monthly premium. However, it’s not guaranteed that your employer will offer this option once you retire. If your employer doesn’t, you can purchase a plan through the Health Insurance Marketplace or Medicare, which will also subsidize the cost of your plan based on your income.
The ACA marketplace offers a variety of plan options, including Medicare Advantage, Medicare Part D, and traditional private plans. You can compare plans and prices online to find the best one for your needs. You can also learn more about the health insurance options available to you by visiting your state’s Marketplace, or contacting a local SHIP. A SHIP volunteer can conduct a personalized review of your situation and guide you through the process.
Another option is to take on a part-time job that offers healthcare benefits. Although you may be able to afford the premiums on your own, working a part-time job in retirement can give you structure and a way to supplement your income. It can also be an opportunity to network with other professionals and keep up with industry trends.
You can also explore the possibility of joining a medical Click for info sharing program, like AlieraCare or Christian Care Ministries, to share your health care expenses with other members. These programs are still relatively new, but have gained in popularity for their affordability and flexibility. While these programs are not as flexible as Medicare or the ACA marketplace, they may be a good solution for people who need short-term coverage or to bridge a gap until they’re eligible for Medicare.
If you’re thinking about retiring early or leaving your business, you should discuss the impact on your healthcare with a licensed financial professional. They can help you develop a plan to cover your medical costs in retirement, and explain the options available to you. They can also walk you through the process of applying for subsidies through the ACA marketplace or Medicare, and help you determine whether your current plan meets minimum value requirements.