Will Healthcare Change as I Transition Into Retirement?

Healthcare can be extremely costly, and if you have been on an employer healthcare plan for the majority of your career, loss of the coverage in retirement can be daunting.  Medicare can affect your coverage and your healthcare costs once you pass age 65, whether you plan to retire or not.  Read the article to see what changes you can expect to your healthcare in retirement.

Do you expect to work after turning age 65?

If you will be working past age 65, continue with your employer’s coverage.  If you do not have a High Deductible Health Plan (HDHP), consider enrolling in Medicare Part A at age 65.  If you do have a HDHP, you may want to delay enrollment in Medicare so you can still contribute to an HSA.  If you will not be working past age 65, move on to the next question.

Will you receive health insurance from your employer after you retire?

If you will continue to receive coverage via your previous employer, you will have to check to see how Medicare is integrated with your coverage.  If you will not be covered by your previous employer, move on.

Can you be covered under your spouse’s plan?

It is generally advantageous to move over to your spouse’s plan for continued coverage if it is available.  If your spouse does not have coverage or you are not able to be added to it, read on.

Does the employer offer health insurance and employ more than 20 people?

If you answered no, you will have to purchase health insurance on your own.  If not, you may be eligible for COBRA, although it can be fairly expensive.  Check out this flowchart to learn more.

Healthcare costs have inflated quickly, and having a lapse in coverage near retirement could cause an expensive problem.  If you have questions regarding healthcare coverage or other general retirement planning advice, please give us a call at 303-440-2906 or click here to schedule a time to speak with us.

Robert J. Pyle, CFP®, CFA is president of Diversified Asset Management, Inc. (DAMI). DAMI is licensed as an investment adviser with the State of Colorado Division of Securities, and its investment advisory representatives are licensed by the State of Colorado. DAMI will only transact business in other states to the extent DAMI has made the requisite notice filings or obtained the necessary licensing in such state. No follow up or individualized responses to persons in other jurisdictions that involve either rendering or attempting to render personalized investment advice for compensation will be made absent compliance with applicable legal requirements, or an applicable exemption or exclusion. It does not constitute investment or tax advice. To contact Robert, call 303-440-2906 or e-mail info@diversifiedassetmanagement.com.

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