Broker Check

Medical Coverage Between Retirement & Medicare

September 22, 2023

CalSTRS, CalPERS & Public Pension Members:

Are you retiring soon and are worried about medical coverage between your retirement date
and joining medicare?

It’s a common question I get. In fact, it is one of the biggest hang ups for people wanting to

Here's what you need to know about healthcare options

- Understand the Coverage Gap: After retirement and before reaching Medicare eligibility at
age 65, there is a period where you'll need to secure healthcare coverage.

- COBRA Continuation Coverage: If your employer offers COBRA (Consolidated Omnibus
Budget Reconciliation Act) coverage, it allows you to continue your existing
employer-sponsored health insurance plan for a limited time. COBRA is known to be
expensive, so make sure it both suits your needs, and you can afford it.

- State Health Insurance Marketplaces: Explore the options available through state health
insurance marketplaces. These marketplaces offer health insurance plans designed
specifically for individuals and families who don't have access to employer-sponsored
coverage. You may be eligible for subsidies based on your income. We’ve done income
planning with clients specifically to address this situation.

- Spousal Coverage: If your spouse is still working and has employer-sponsored health
insurance, check if you can be included in their coverage.

- Retiree Health Benefit Programs: Some employers, including school districts & public
safety employers, offer retiree health benefit programs. These programs may provide health
insurance coverage to retirees. Check with your employer to see if such programs are
available to you.

As you prepare for retirement, be sure you have a plan in place to address your healthcare
needs during the time before age 65. Evaluate the available options, consider your budget,
and choose the coverage that best supports you!