Health Care After Retirement 2
Part B coverage is optional and requires a monthly premium of approximately $ 100. Part D is a drug option that covers part of the cost of the drugs. There are many options in Part D of Medicare, and all options require payment of a premium, as well as a co-pay or co-insurance for each prescription you fill. And part C refers to “Medicare Advantage Plans”: health plans operated by Medicare-approved private insurance companies found at https://www.medicareadvantageplans2020.org.
Because Medicare does not cover all contingencies, there are several private supplementary plans available to Medicare beneficiaries. These supplemental policies are often referred to as “Medigap” coverage because they bridge the “gap” between Medicare reimbursements and actual costs. Before applying for Medigap coverage, you must already be enrolled in Medicare Part A and Part B. Medigap’s various policies have been standardized into ten separate plans, each of which offers different combinations of options. All of this is sold and managed by private insurance companies. Nearly 20% of Medicare registrants are also enrolled in Medigap policy.
If you retire before age 65 and your employer does not offer continuous coverage, you have a few options. COBRA is a law that allows people who retire before age 65 to continue with their current employer-provided coverage for up to 18 months. However, if your employer was paying part of your insurance premium during your tenure as an employee, that obligation is terminated at the time of retirement and you must pay the COBRA premiums in full. Your employer, who will continue to maintain your policy through the company’s group policy during the COBRA coverage period, may even charge you an additional 2% for administrative costs. However, your basic premiums should not increase, as you will be covered by the same plan that covered you as an employee.COBRA coverage may extend beyond 18 months if it is determined that the beneficiary has been disabled. These extensions last only an additional 11 months, and your former employer’s Group Health Plan may charge up to 150% of the normal cost of your premiums during the extension period.
If you have used your COBRA coverage and all available extensions and are still under 65 years old and therefore not yet eligible for Medicare, you will have to go to the private market to cover yourself in the meantime. Do not wait until the last minute to do this. You will have to search and find the most suitable coverage for you. It may cost more than you want to pay, but don’t find out. There is a lot to consider when providing health insurance for you and your family after you retire, and this brief discussion is just a broad introduction. Do as much research as you can, get advice from your company’s human resources department before you retire, and select the combination of plans that works best for you.