6 Things to Keep in Mind About Retiree Insurance

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6 Things to Keep in Mind About Retiree Insurance

Yes, health insurance is a confusing matter but it is a very important matter because it is directly related to your health, well-being and quality of life in general. Considering there are so many choices of health insurance policies, it is really essential that you spent some time and effort to educate yourself about the various options and their terms and conditions. Not being aware of the details of the insurance policies can result in unexpected expenses for you regarding health insurance and health care.

Retiree Insurance

Some employers give their employees insurance benefits even after retirement. The health insurance policy that the employees have while they were employed extends after their retirement.However, employers are not obligated to give this insurance and it is upon their discretion. This insurance is generally in the form of group policies.

There are a few things you need to be aware of if you do have retiree insurance from your former employer.

  1. You have to first make sure whether your employer gives retiree insurance and what is the kind of coverage. The terms of your retiree coverage may not be the same as the coverage you get while being employed.The benefits and premiums could be different for retiree coverage.
  2. If you have both Medicare and group retiree insurance coverage then Medicare will pick up the tab first, the rest will be covered by your retiree coverage.In order to get full extent of the retiree coverage you have to enrol into both Medicare Part A and Part B.
  3. You should find out if you will be covered by your retiree coverage if you did not get enrolled into Medicare even when you were eligible for it.You may not get coverage from your retiree insurance for the period you did not enrolinto Medicare after being eligible for it.
  4. You should find out if your spouse will continue to receive health coverage under your policy even after you retire. Retiree coverage does include spouses as well.
  5. You should have a clear idea about how your retiree insurance policy works with Medicare. You can do this by reading the details carefully and getting help from your company’s administrator and the state insurance department.
  6. You should be aware if your retiree coverage will continue under COBRA regulations if your employer company shuts down for some reason. You may be entitled to receive COBRA continued coverage if your company was a part of a bigger corporate entity and other companies under it are still offering a group health plan to its employees.

Knowing the benefits of your retiree coverage is important because it may not be necessary to buy Medicare Supplement plan if your retiree coverage works out well. This insurance when used with Medicare, supplements the benefits of Original Medicare and covers the out-of-pocket expenses and sometimes gives added coverage.