Explore 6 Insurance Options Before Deciding You Can't Retire

With early retirement, people can reduce their stress, explore hobbies, and enjoy more free time to travel or be with family. It can be a great move if you are financially secure. However, health insurance is one concern that keeps some people from retiring early, even if they are financially comfortable. Fortunately, a health insurance broker can help you explore various options and find a plan.

6 Ways You Could Have Good Health Insurance if You Retire Early

About 22% of workers plan to retire between the ages of 60 and 64, while 13% envision retiring before 60. Having quality health insurance can offer a lot of peace of mind during these years. With one of the options below, you may be able to retire early and have good health insurance.

1. Your Spouse's Health Insurance

If your spouse is working, you could explore the feasibility of joining their employer-sponsored plan. In some situations, this can be affordable and means only a small premium increase for your spouse. In other situations, though, the premium increase can be considerable. Regardless, it is worth running the numbers with a medical health plan broker to find out.

2. Part-Time Work

Part-time work does not exactly correlate with early retirement, but it has several advantages. For example, you can ease into complete retirement over a few years, meet new people, and explore jobs you always wanted to or would otherwise not have looked into.

Some part-time jobs offer health insurance, too, although the coverage might be limited. However, it could be enough to meet your needs, whether by itself or in conjunction with another option.

3. Medicaid

If your household income is below certain limits, you might be able to enroll in Medicaid for your health coverage. Eligibility varies by state and usually depends on the household’s average income per month.

4. Health Insurance Marketplace or State Exchanges

Through the federal health insurance marketplace or one of the state exchanges, you can shop for individual and family health coverage. The marketplace and the exchanges feature plans from various insurers with different prices and types of coverage.

If you have specific health issues or concerns, take extra care to read all of the print thoroughly so you can be sure you are getting the coverage you think you are. A health insurance broker can also help ensure you get the right coverage for your needs and investigate whether you qualify for government subsidies to cover various health care insurance costs on the exchanges.

5. Private Plans

There are many health plans you will not find through federal or state exchanges. Instead, you work with a medical health plan broker or the insurer itself to explore your options. You can get more plan customization this way and may have access to benefits and services not available through exchange plans. A broader network of doctors and specialists may also be available and with fewer restrictions versus marketplace and exchange plans.

6. COBRA

The Consolidated Omnibus Budget Reconciliation Act lets people continue to get the same health insurance benefits for as long as 18 months after they leave a job. However, getting COBRA can be expensive as the employer does not have to pay its portion. Instead, you pay it as well as any extra fees, if applicable.

Why Health Insurance Can Give People Pause When They Think About Retiring Early

Health insurance can be an obstacle to retiring early for several reasons. For example, retirees often get Medicare coverage, which they qualify for if they are 65 or have a qualifying disability. Early retirees tend to not be eligible, though, since they do not meet the age requirement.

Moreover, health care costs can quickly accumulate. That's true even for younger people, and older people are more likely to have chronic health issues and other conditions.

As you think about whether insurance options such as a private plan or state exchange plan could work for you, do a few other things.

• List your current health care needs and your predicted future needs.
• Account for chronic conditions and medications.
• Create an overall budget, and see how much room you have for health insurance.
• Factor in monthly premiums, deductibles, copayments, coinsurance, and other out-of-pocket expenses.
• Enlist the help of a broker instead of trying to figure it all out alone.

Talk With a Health Insurance Broker

Retiring early could be more possible than you thought. We are a medical plan health broker in California that helps people find plans and navigate various insurance and Medicare complications. For more information on health insurance for retirees, contact us today.