Medical Plans for Retirees

According to the AARP, by the year 2031, more than 70 million Americans will be 65 or older, meaning a large percentage of the population will be looking for ways to pay for medical bills and health care with retirement looming. Medicare, the federal government's health insurance plan, is an affordable option for retirees, but not the only option for those looking for coverage in their retirement years.

Medicare Part A

• Medicare, health insurance provided by the federal government for Americans 65 and older, is offered in several parts. When you apply for Medicare, according to the AARP, you automatically get Part A, provides you with hospital coverage, including nursing care and hospital stays, up to about 80 percent. More than likely, thanks to payroll taxes you paid when you were part of the workforce, you won't pay a monthly premium for this service, but your premium is high. In 2011, for instance, the premium stood at $1,132.

Medicare Part B

• Medicare Part B provides coverage for your medical coverage, including visits to the physician, laboratory tests, ambulance service and outpatient procedures, among other medical expenses. Part B is optional, and if you are still carrying an employer's health insurance, hold private insurance, are covered under a group, union, or a spouse's coverage, then you more than likely would opt out. Medicare Part B comes with a monthly premium, in 2011 the standard rate was $115.40, according to the AARP, and you will also have to reach a small deductible before coverage kicks in. If you choose to opt out of Plan B upon enrollment, and then decide to enroll at a later date, there are consequences in the form of higher premiums so make sure to weigh your options carefully.

Private Health Insurance

• In 2009, according to the SunSentinel.com, more than 47 million people were in enrolled in Medicare, making it a viable option for Americans 65 and older. While Medicare is a welcome option when you turn 65, many retired Americans need coverage sooner, and there are options. AARP, for example, offers private insurance for those ages 50 to 64 that provides benefits on such medical expenses as preventive care, prescription drugs and hospital stays. Private health insurance and temporary health insurance, such as a COBRA plan, can get expensive, especially if you have a pre-existing condition, but you can find discounts for seniors through group insurance, such as AARP, or through private insurers.

Medigap Insurance

• Retirees benefiting from Medicare may also choose to supplement their health coverage by purchasing a Medigap health insurance policy. Medigap is private health insurance that anyone receiving Medicare A or B coverage is entitled to purchase. Medigap, for a premium, fills in where Medicare stops coverage, such as long hospital stays. There are 12 plans to pick, according to Medicare.gov, and each offers core coverage, though some of the plans differ by state. Medigap insurance can be a good option, especially if you are looking for expanded coverage that you cannot get from Medicare.