One of the most expensive propositions facing early retirees is the cost of health insurance until Medicare kicks in at age 65 but it is not something you can do without.  Asset Protection is the name of the game until you reach Medicare eligibility.  Without proper protection a major health event could wipe out a significant portion of your retirement savings, yet the cost of health insurance coverage for someone in their late 50s or early 60s can itself seem rather daunting.  Here is my suggestion.  Change your mindset away from traditional health insurance plans and ask yourself the simple question, what is the most risk I am willing to take on?  In other words, how much could you comfortably afford in the face of a major health event.  A high deductible health plan is considerably less expensive than the plans you may be used to and with the 2010 passage of health reform all health plans must now provide coverage for preventive care with no out of pocket cost, so even a low cost $25,000 deductible plan covers annual physicals, mammograms and screening colonoscopies at no cost.  You can then add an inexpensive supplemental accident plan  to your high deductible health plan to help with unexpected expenses before your health insurance deductible has been satisfied due to an accident.  These plans are available through age 64.

If you have pre-existing conditions and cannot qualify for a health plan you do have other options available to you.  In Ohio, for instance, if you are coming off a health plan, state continuation or COBRA you may be eligible for an Ohio Open Enrollment Plan.  If you have not had coverage for at least 6 months and are uninsurable due to medical reasons you may qualify for the Ohio Risk Pool .


Contact Ronald Haines at ronald@hcibenefits.com