How are health benefits changing for retirees?
Health cost management, coordination of benefits with Medicare, and the fact that people are staying employed and living longer are just a part of this change. According to a survey from Towers Watson, retirees will start to see major changes in their medical programs that will transform their health and well-being in the foreseeable future.
Can a company cut or eliminate retiree health benefits?
Furthermore, when employers do offer retiree health benefits, nothing in federal law prevents them from cutting or eliminating those benefits–unless they have made a specific promise to maintain the benefits. The key to understanding your retiree health benefits lies in the documents governing your plan.
Do you have to promise retiree health benefits?
Employees and retirees should know that private-sector employers are not required to promise retiree health benefits. Furthermore, when employers do offer retiree health benefits, nothing in federal law prevents them from cutting or eliminating those benefits–unless they have made a specific promise to maintain the benefits.
What to do if you lose health insurance when you retire?
If you retire before you’re 65 and lose your job-based health plan when you do, you can use the Health Insurance Marketplace® to buy a plan. Losing health coverage qualifies you for a Special Enrollment Period. This means you can enroll in a health plan even if it’s outside the annual Open Enrollment Period.
What happens to your health insurance when you retire?
Instead, you must transition to an individual health insurance plan. This transition means that your cost of health insurance increases after you retire. As an eligible government employee receiving FEHB benefits, the government will continue to pay the same portion, even when you are retired. Health care costs do not increase for you.
Furthermore, when employers do offer retiree health benefits, nothing in federal law prevents them from cutting or eliminating those benefits–unless they have made a specific promise to maintain the benefits. The key to understanding your retiree health benefits lies in the documents governing your plan.
Employees and retirees should know that private-sector employers are not required to promise retiree health benefits. Furthermore, when employers do offer retiree health benefits, nothing in federal law prevents them from cutting or eliminating those benefits–unless they have made a specific promise to maintain the benefits.
Can a retiree use the health insurance marketplace?
If you’re retired and need health coverage, you can use the Marketplace to buy an insurance plan. If you have retiree health coverage, you have different choices to consider. Have Medicare? Learn about Medicare and the Marketplace.