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Strategic Preparation for Texas Health Insurance: What if I leave my job? What Occurs When I Retire?

By: Al Munger

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The Consolidated Omnibus Budget Reconciliation Act (COBRA), a law created in 1986, gives workers (and members of their family) who lose their health insurance benefits the right continue their group health insurance for a limited period of time under circumstances such as voluntary or involuntary job loss, reduction in hours, transition between employment, divorce, adoption and death. Normally, the employee pays up to 102% of the premium cost for the identical policy; this is still usually less expensive than buying an individual insurance policy. For more information visit Texas Health Insurance.

There are three basic aspects for qualifying for COBRA: the qualifying event, the insurance plan coverage and the qualified person. Each aspect is taken into consideration when applying for COBRA and you must elect to either apply for COBRA or waive your rights to COBRA within 14 days after a qualifying event.

You must also have been in the group insurance plan throughout your employment to be eligible. Although there are exceptions, generally you may continue to pay your own premiums to keep COBRA coverage intact for up to 18 months. Companies who have fewer than 20 employees, State or Federal employers or employee organizations may not offer COBRA coverage. Check with your health insurance administrator to see if you may qualify. You may also have this information readily available in your group health insurance policy or in your company handbook.

Although it may be costly, the rate of being able to keep your group insurance coverage rate may be well worth it. For more information visit Texas Individual Health Insurance.

What Happens When I Retire?

Health insurance concerns weigh heavily on the minds of people wanting to retire before Medicare protection kicks in at age 65. A lot of people put off retirement simply because the cost of an individual health insurance policy is too great on a limited income. What choices for health insurance do you have if you choose to retire before age 65? Although they are not required to, you may be able to get COBRA-like coverage from your employer.

As an added retirement benefit, your employer may allow you to pick up the premium on your policy; although paying 100% of your premium may initially appear to be an expensive option, purchasing an individual policy apart from a group may be even more costly and not provide you with the level of coverage you previously had. Some companies are offering basic high-deductible insurance reasonably in the hopes that they will be able to enroll you in Medicare Part C (supplemental insurance) when you retire.

Another option is to budget and save money to cover your anticipated medical costs for the time period between retirement and age 65. If you are in very good health, this may be a viable alternative for you.

Pre-planning for retirement is an important issue; the earlier you start planning, the better. Realizing the Medicare does not pay all of your medical expenses, you should budget money for medical expenses even after retirement. For more information visit Health Insurance Quotes Texas.

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