Dear Wise Seniors: I’m planning on retiring in a few months and need temporary health insurance until I can enroll in Medicare at age 65. What are my options? — Early Retiree
Dear Early Retirees: There are several places early retirees can buy health insurance before Medicare kicks in, but the best option for you will depend on your income level, medical needs and how long you want coverage for. Here are some places to look:
Affordable Care Act: For most early retirees who are not yet eligible for Medicare, the Affordable Care Act’s health insurance marketplaces are the best option for comprehensive health insurance, and you won’t be denied coverage or charged extra because of a pre-existing health condition.
They also qualify for subsidies to reduce their monthly premiums if their income falls below 400 percent of the poverty level in retirement (less than $60,240 for individuals and $81,760 for couples in 2024).The ACA also guarantees that, through at least 2025, households earning more than 400 percent of the poverty level will pay no more than 8.5 percent of their income for benchmark insurance.
To shop for an ACA plan in your state, visit HealthCare.gov or call 800-318-2596.
Cobra: This is another temporary health insurance option if you qualify. This federal law allows you to enroll in your employer’s group health insurance for at least 18 months if you work for a company with 20 or more employees. Be aware, however, that COBRA isn’t cheap. You’ll pay the full monthly premiums and a 2 percent administrative fee yourself.
For more information, ask your employer’s benefits administrator or contact the Employee Benefits Security Administration at Askebsa.dol.gov or 866-444-3272.
Short-term health insurance: If you can’t find an affordable ACA plan and COBRA is too expensive, short-term health insurance is another option. These are cheaper, bare-bones health plans that provide coverage for up to three months, with one-month extensions available. However, short-term plans are not ACA-compliant and may deny coverage to people who are sick, not cover pre-existing conditions, or exclude coverage basics like prescription drugs.
To find and compare short-term health insurance plans, try sites like eHealthInsurance.com and PivotHealth.com.
Healthcare Sharing Ministry: If the above options don’t work, a temporary solution could be a health care sharing ministry, a cost-sharing health plan in which members (usually of the same religious faith) make monthly payments to cover the costs of other members, including themselves.
While HCSMs are less expensive than traditional out-of-pocket health insurance, it’s important to remember that HCSMs are not health insurance. HCSMs are not required to comply with the ACA’s consumer protections and can deny or limit coverage for pre-existing health problems or limit reimbursement for medical expenses. Preventive care is also typically not covered.
To find these plans, compare the three biggest providers: Samaritan Ministries (SamaritanMinistries.org), Medi-Share (MyChristianCare.org) and Christian Healthcare Ministries (Chministries.org).
Questions about seniors can be sent to Savvy Senior, PO Box 5443, Norman, OK 73070, or visit SavvySenior.org.
