Health Insurance for Early Retirees: A Basic Overview


Getting out of the rat race early is a blessing. But, what about health insurance for early retirees? What about medications? Get answers in this overview.

In the US, the cost of healthcare after retirement stands around $280,000 per couple. While this number may vary, there’s no denying that getting medical attention is expensive. Especially if your insurance requires a lot of out-of-pocket payments.

Folks retiring before the age of 65 are very fortunate. After years of hard work, there’s nothing more gratifying than hanging up the gloves early. But, you also have to make sure your medical expenses won’t break the bank. Which will depend in part on the health insurance you choose.

Planning for early retirement is a blessing. But, you should make all the preparations to ensure your medical bills will be taken care of in the future. In this article, we will discuss everything you need to know about health insurance for early retirees.

What is Health Insurance for Early Retirees?

As the name suggests, healthcare insurance for early retirees covers medical expenses for pensioners. Medical bills are one of the biggest expenses for folks who retire at age 65. This number goes up dramatically for people looking into early retirement.

For this reason, you need to consider higher medical expenses if you are considering retiring early. Many would argue that these bills are already too high for most families. Especially if you consider the gap in coverage known as the donut hole.

That said, retiring early is still a great idea. You just have to take the time to sort out your insurance beforehand.

How to Choose the Best Health Insurance for Early Retirees

Whether you live an active or relaxed lifestyle, having insurance will help protect you against accidents.

The same goes for conditions that may not show symptoms right away. But, you have to pay a lot of attention to the policy you choose. This will help ensure you’re getting the best possible benefits. 

Investigate as Much as You Can

You have to invest time in researching as much as you can. This will help identify the best providers. It will also give you an approximate of the out-of-pocket expenses you may have to cover. Remember, you can get health insurance for retirees from many providers. This includes:

  • Spouse’s employer-sponsored health plan
  • Consolidated Omnibus Budget Reconciliation Act or COBRA
  • Find part-time employment that provides healthcare benefits
  • Retiree healthcare coverage from the current or previous employer
  • Affordable Care Act options
  • Private insurance provider

Evaluate Each Option

Each one of the options listed above has its own requirements and benefits. To make the best choice, evaluate each option individually. This will help you find the best structure or option for your specific situation.

Make the Best Choice Based on Your Case

Once you identify the best option, it’s time to select the best early retirement insurance plan. Make sure you understand all limits and potential costs before committing. If possible, contact your insurance provider and as many questions as you can. 

Choose the Best Early Retirement Health Insurance Plan Today!

Early retirement is a huge goal for many individuals and couples alike. That said, you have to make sure you stay healthy. And, in case you do get ill, you have to ensure you have insurance to take care of your medical expenses.

The tips above should help you choose the best health insurance for early retirees. Or, keep reading to learn more about retirement planning.