health ins for younger spouse when I go on Medicare

[RookieIA]

Hi Bogleheads. Yall are great.

She's 2 years younger and doesn't have medical coverage at her part time job. She's on on the family plan my employer provides. So if I retire next year and go on Medicare at age 65 but my wife is only 63 then I've got to buy an individual plan for her for two years until she becomes Medicare eligible? Is that the typical scenario?

[mur44]

You are right; if your employer offers retiree health insurance
that could provide for her health insurance for two years.
Your employer may provide COBRA for spouse only.

Here are sources for finding the best insurance:

http://www.healthcare.gov/

http://www.ehealthinsurance.com/

http://www.gohealthinsurance.com/


Disclosure: I am a Certified Volunteer Medicare Counselor

[archbish99]

Basically. COBRA may be an option, but it's generally pricey. It's a good fallback in case the private insurance market doesn't like her and you need it before ACA kicks in.

[dm200]

Basically. COBRA may be an option, but it's generally pricey. It's a good fallback in case the private insurance market doesn't like her and you need it before ACA kicks in.

My experience on several occasions with COBRA (for me) was that the cost was not unreasonable and was the same as what the employer paid (I think they can add a percent or two). Plan ahead for COBRA, converting from the employer plan to individual coverage or finding separate insurance privately. Ask the insurance plan you have now about options for her to convert when you retire.

Do you have any choices of plans now from the employer? If so, check out which choices are more easily converted and consider switching to that choice. My experience is that HMOs are easier to convert, but that may nit be the case with you.

Because of the Affordable Care Act going into effect, the answers on this change all the time. Also, the "rules" and choices vary by state.

Finally, a last thought, might you consider not retiring so that, at least, she would have COBRA until she was eligible for Medicare? [I think COBRA is usually 18 months limit]

[cheese_breath]

See if your employer will continue to cover her until she becomes Medicare eligible. Some do, some don't.

[dbr]

You need to ask your employer. Until recently it would probably be typical that she would continue to be carried on the employer plan until her Medicare age. One effect of new law is that she should be able to buy private insurance without underwriting for pre-existing conditions. That means that after (or is it starting) in 2014 many companies plan to discontinue spousal coverage for retirees on Medicare and you will have to buy a private policy or bridge with COBRA. My employer has been blitzing us with endless notifications about exactly how they are handling this. Has your employer not provided you any information?

[linguini]

It would also help to know what state you live in, because insurance markets and regulations vary by state.

[Watty]

Everything is changing but another option when COBRA runs out is a continuation with a HIPPA policy. (Google this)

The HIPPA policy varies greatly by state and is more expensive but for people that did not have any other way to get insurance it can be their best option.
You will likely get minimal notification that HIPPA is an option and you must make all the right applications by the right deadlines or you will be out of luck so do all your own research on this

In your planning also look at the deductible for the year. If the COBRA will run out in the middle of the year it might be best to switch to an individual policy on January 1st so that you do not have to pay two deductibles during the year.

[midareff]

I was lucky... retired in April and my employer allows me to retain my wife on the medical and dental insurance (at their cost) until she is 65. Seeing as it is a negotiated 25,000 employee pool the rates are as good as it gets.

[bluemarlin08]

Depends on your state. If you are in a state that allows insurance companies to medically underwrite your wife, and if she is insurable, buying an individual policy gives one many more options and often less expensive.

[grabiner]

Basically. COBRA may be an option, but it's generally pricey. It's a good fallback in case the private insurance market doesn't like her and you need it before ACA kicks in.

Given your wife's age, COBRA may be a good deal, because your employer policy premium probably doesn't depend on her age, while private policies do.