3 Ways to Bridge the Health Care Gap in Early Retirement
Navigating retirement involves a great deal of planning. Thanks to Medicare, your health insurance is largely planned for you. Medicare will undoubtedly be one of the cornerstones of your financial plan in retirement.
The transition to Medicare is, in theory, a straightforward process: Stay on your (or your spouse’s) employer’s health insurance until you reach age 65, when you can switch to Medicare. If there are still gaps in your health coverage after enrolling in Medicare, you can opt for a Medicare Supplement Insurance policy (also known as Medigap coverage) to expand the standard coverage.
But what if you’re planning to retire before age 65? What if you’re forced to retire sooner than you anticipated? In either case you’ll need to come up with a plan for bridging the “health care gap” between when you retire and when you qualify for Medicare. Consider the following options for early-retirement health insurance to bridge that gap.
The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows you to stay on your former employer’s health insurance plan if you retire or get laid off. The...