If you are between the ages of 50 and 65 and you are going to be looking for health insurance or are looking for health insurance you need some help. This is a tough age (of course what age isn’t starting with the terrible twos) because you are at a prime age to start developing health problems. Statistically speaking and statistics is the only language insurance companies speak, the insurance company can predict they are going to spend more on 50-65 year old than a 20-45 year old. For that reason premiums are much higher for the older person.
However, we have not reached middle aged without learning how to work the system. Older people do have options, and we need to take the time to consider them.
If you currently have a job and are looking to retire or start your own business, you have a couple of avenues you can investigate. First you can inquire if your company will let you buy health insurance through the company plan. If your company will let you do this your employer (assuming we are talking early retirement) may subsidize part of your premiums. If not, you still get group rates which are a whole lot cheaper than individual rates. If you are married and your spouse is still working strongly consider adding yourself to his/her plan if that option is available to you.
The next option (if you currently have a job which provides health insurance) is COBRA or Consolidated Omnibus Budget Reconciliation Act. COBRA lets former employees and their dependents continue their employer’s group coverage for up to 18 months. The best thing about COBRA is it is guaranteed. Your former employer’s insurer can’t turn you down even if you have a chronic medical condition. The worst thing about COBRA is the cost. Your employer generally covers 70% or more of your health insurance premium. With COBRA you have to pay the whole premium plus administrative costs. Industry surveys indicate based on an average premium (for 2007), a former employee would have to pay more than $373 a month for individual coverage and more than $1,008 a month for family coverage.
Have you been declined by a private major medical insurance company? You still have some sort of high risk health plan in your state. Each state is different, so you have to find the one in the state where you live. In some states the premium still can cost a lot.
Some people get their coverage through a professional alliance. These plans may use their buying power to get higher benefits or lower prices than an individual could bargain for. If you are a member or any organization, check out this option.
Of course, many of us buy individual major medical policies. If you are in good health, there is no reason you cannot find insurance coverage. Sometimes you may need to opt for a fairly high deductible in order to get covered though. Your rates will be higher than they would be for a younger person. HSA plans, which combine tax advantaged health savings accounts and higher deductible major medical, may be a good choice for you.
Consider these layoff health insurance choices .