Health Insurance for Early Retirees

The New York Times has an interesting article
on some of the challenges that early retirees face in finding health
insurance. The article notes that for most people-especially those with
no existing medical concerns-”the best, least-expensive option is to
buy an individual policy” rather than opt into COBRA coverage through
an employer. The story focuses on a couple in their early 60s who
decided to leave their jobs before they were eligible for Medicare who
were able to find an individual insurance policy for about $400 a
month, which was about half the cost of paying for COBRA coverage. The
couple did, however, have to spend some time shopping around due to
some minor pre-existing medical conditions.

The article also offers another key point for early retirees: When
leaving a job, individuals have 60 days to start COBRA coverage-that
is, opt to pay to remain on an employer’s plan-or else lose the option.
As the Times notes, many early retirees may want to opt into COBRA
initially until they have found coverage elsewhere.