What Health Insurance Do You Qualify for If You Are Retired?

When you retire, you have several options for health insurance. As you get older, having health insurance becomes increasingly important. Old age often brings with it health issues. At a time in your life when you are no longer working and no longer have the opportunity for significant increases in your income, you must have a way to afford the rising costs of health care.

High Deductible Plan

• A high deductible health insurance plan provides low premiums while increasing the deductible on the plan dramatically. This means that you must pay a higher dollar amount out of pocket before the insurance company will pay for your health care costs. However, the premiums are much lower than copay plans, making them an attractive option for retirees who do not envision needing anything other than catastrophic health insurance.

State Guaranteed Risk Pool

• If you need insurance and a high deductible plan isn't for you, you don't qualify for Medicare and you can't afford the high cost of an individual policy, then you may qualify for a State Guaranteed Risk Pool. Some states offer health insurance to individuals who cannot afford to pay for private health insurance. This includes elderly individuals who are retired, but do not yet qualify for Medicare.

Medicare

• Medicare is insurance that is specifically designed for retired individuals age 65 and older. The insurance works like most other forms of insurance in that you pay premiums, and coverage is guaranteed renewable every year. The insurance provides coverage for a wide range of services and you may also elect optional coverage for added services. Medicare is divided into "parts." Part A covers inpatient services, while Part B covers outpatient services. Medicare Part D provides prescription drug coverage for retirees. Medicare Advantage plans are separate plans that are managed by private health insurers and provide additional coverage that may not be available through Medicare Parts A, B or D.

Considerations

• The type of plan you choose may depend on your exact age. For example, if you are 65 or older, you must be enrolled in Medicare. But if you are younger than 65, then the choice of health insurance depends largely on what you can afford and what you want from your health insurance. If you expect to use health insurance often, a state plan may be the only affordable way for you to cover your health care needs. If you don't envision using your health insurance often, a private high deductible plan may be ideal.