The nation's 76 million Baby Boomers (born between 1946 and 1964) need to prepare for financial security in retirement — and that includes making wise decisions about their health insurance needs.
The National Association of Insurance Commissioners recommends that Boomers consider these options:
Options to consider
- Convert a Group Health plan. If you're employed and have group health insurance through work but expect to retire soon, find out if your company has a plan for retirees or if you can convert your group policy to an individual policy.
- Choose a high-deductible plan. These plans require higher out-of-pocket payments — a minimum deductible can be substantial — so you should be in good health and able to afford the expense. You can also pay for many appointments and prescriptions through a tax-advantaged HSA. A high-deductible plan typically provides coverage for major medical care such as surgery or disease treatment.
- Look for protections for pre-existing conditions. The Affordable Care Act prohibits insurers from denying coverage or charging higher premiums because of a health condition. If you have questions about eligibility or special programs, contact an insurance professional for current guidance.
- Consider long-term care insurance. Many people age 65 and older will need some form of long-term care services during their lifetime, which can be costly. If you lack the resources to pay for nursing home care or have a chronic condition or disability, long-term care insurance is an option to evaluate, though availability and benefits vary by carrier.
For more detail on how coverage options changed under health reform, see Understanding Health Coverage Options Under the ACA.
For guidance on using tax-advantaged accounts with higher-deductible plans, see Understanding Health Savings Accounts and Insurance.
Our health insurance professionals would be happy to offer their advice — just talk to an agent.
Frequently Asked Questions
Can I convert my employer group plan to an individual policy when I retire?
Many employers offer retiree plans or conversion options, but availability and terms vary, so check with your benefits administrator before retiring.
Are high-deductible plans safe for people near retirement?
They can be if you are generally healthy and have funds to cover the deductible, but they may not be ideal if you expect frequent medical expenses.
Will a pre-existing condition prevent me from getting coverage?
Insurers cannot deny you coverage or charge higher premiums because of a pre-existing condition under current federal rules, though specific enrollment rules and exceptions can apply.
Should I buy long-term care insurance?
Consider your financial resources, family support, and health risks; long-term care insurance can help protect savings but comes with varying costs and benefit limits.