Health insurance is the largest expense for most retirees according to AARP. How much you pay for health insurance in retirement will vary greatly depending on your age. Many people who retire before age 65 enroll in an Affordable Care Act, health insurance marketplace plan. The health insurance coverage is often subsidized by the federal government, based on the insured’s household income. The plans must adhere to government regulations such as not discriminating against pre-existing conditions. Enrolling in an ACA plan may be less expensive than staying on a former employer’s health plan.

 

Once a person reaches age 65, they are eligible for Medicare benefits.  Medicare currently provides coverage to over 65 million Americans and is often significantly less expensive than staying on unsubsidized employer plans.

 

We encourage everyone to enroll in Medicare Part A three months before turning age 65. Part A covers inpatient hospital costs, skilled nursing, home health care and hospice services. Medicare Part A has no monthly premium.

 

Medicare Part B covers outpatient services, outpatient hospital charges, durable medical equipment and most professionally administered prescription drugs. Unlike Part A, Medicare Part B has a monthly premium. In 2024, the standard Medicare Part B premium is $174.70 a month. The premium amount can vary based on income.

 

Once you are enrolled in Medicare Part A and Part B, also known as original Medicare, you can enroll in a Medicare Advantage or a Medicare Supplement Plan + Part D drug plan.

 

Medicare Advantage plans usually offer managed care networks, HMOs or PPOs. You will have a network of doctors and hospitals that will provide in-network care. The Medicare Advantage plans we offer include built in comprehensive drug coverage. You will not need to purchase a separate drug plan. Most Medicare Advantage plans will have no monthly premium. Many also come with additional benefits such as built in dental, vision and hearing coverage.

 

Your other option is purchasing a Medicare Supplement plan. Medicare Supplement plans do not limit you to a network of medical providers. With a Medicare Supplement plan, your network is every provider in America who accepts Medicare. Unlike Advantage plans, there is a monthly premium to purchase a Medicare Supplement plan. The monthly premium will be based on your zip code, age and sex. Supplement plans will require you to purchase a stand alone drug plan to provide comprehensive prescription coverage.

 

You have many choices when it comes to choosing health insurance coverage. We can help you find a health insurance plan that fits your coverage needs and your budget.

 

If you would like more information on your health insurance choices or a complimentary review of your current plan, please click on the calendar below or contact us at 954-909-4094, email drop@floridaretirementplanning.com.