Will Healthcare Change As I Transition Into Retirement?

One of the most important factors to consider is Medicare. Eligibility for Medicare generally begins at age 65, although there are some exceptions for those who are disabled or have certain medical conditions. It's important to understand the different parts of Medicare (Part A, Part B, Part C, and Part D) and how they work together to provide coverage for different types of healthcare services.

If an individual plans to retire before age 65, they may need to consider other options for healthcare coverage until they become eligible for Medicare. Some options may include COBRA coverage through their former employer, individual health insurance plans, or coverage through a spouse's employer-sponsored plan.

If an individual is eligible for Medicare but also has coverage through an employer-sponsored plan, they will need to consider how the two plans work together. In some cases, the employer-sponsored plan may be the primary payer, while in other cases Medicare may be the primary payer.

Another important factor to consider is health savings account (HSA) coordination. If an individual has an HSA, they will need to understand how their healthcare coverage options impact their ability to contribute to the HSA and use the funds for eligible healthcare expenses.

It's important to consult with a financial advisor or healthcare professional to determine the most appropriate healthcare options for an individual nearing retirement, taking into consideration their unique circumstances and healthcare needs.

Click here to read more.

Robert J. Pyle, CFP®, CFA, AEP® founded Diversified Asset Management, Inc., in 1996 to provide personalized, comprehensive wealth management services to successful individuals, families, single women, and business owners. His specialty is addressing the complex financial needs of self-employed professionals, corporate executives, and small-business owners. Our disclosure can be found here. The views, opinion, information, and content provided here are solely those of the respective authors, and may not represent the views or opinions of Diversified Asset Management, Inc. Diversified Asset Management, Inc. cannot guarantee the accuracy or currency of any such third party information or content, and does not undertake to verify or update such information or content. Any such information or other content should not be construed as investment, legal, accounting, or tax advice.