Retiree Health Insurance Coverage: What Actions to Take


Are you planning to retire soon? There can be much confusion that comes with trying to provide insurance for yourself and your spouse during this transitional time in your life. To top it off, you’re probably looking into Medicare eligibility too.

Your retiree group health plan coverage depends on the terms of your specific plan. You or your spouse may have an employer that may not offer any health coverage after you retire. On the other hand, if you can get health plan coverage upon retiring, the rules may or may not work the same way with Medicare.

Here are 5 Actions to Take When Considering Retiree Health Insurance Coverage:

  1. Ask if your employer will continue coverage after you retire. Your employer controls this coverage which means they are not required to provide it, they can change benefits, or even cancel it altogether.
  2. Find out the benefits and price of retiree coverage. Ask whether or not it will cover your spouse.
  3. Make sure you know what happens once you’re eligible for Medicare. Retiree coverage sometimes refuses to pay during a period in which you were eligible, but did not sign up for Medicare. If you enroll in Medicare Part A and Part B, you may still see the benefits from your retiree coverage.
  4. Find out what effect your continued coverage will have on both you and your spouse’s health coverage. Read through your plan’s benefit booklet and see how your retiree coverage works with Medicare.
  5. In the case that your former employer goes out of business, Federal COBRA rules may protect you. If you can’t get COBRA coverage, you may have the right to buy a Medigap policy whether or not you’re in the open enrollment period.

If you’re still unsure about how to proceed with retiree insurance and how it may pair with Medicare, please give us a call. Armor Insurance Services, LLC  will listen to your unique situation with our expertise, and guide you through enrolling in the correct combination of retiree and Medicare plans.

Mike Kellerman is the President of Armor Insurance, LLC and veteran of the Health Insurance industry for over 20 years.