Retirement Health Insurance Definitions

Most Americans get their health insurance through their employers so retiring usally means giving up health insurance. The federal goverment offers Medicare to replace it. Medicare is a federal program designed to provide health benefits that lower your cost of healthcare for those who have reached full retirement age or who have covered disabilities. There are two types of Medicare you can select from:

  • Original Medicare
  • Medicare Advantage

Whichever you choose make sure to sign up for Medicare three months before you reach retirement age. Applicants pay a higher premium if they delay coverage.

Original Medicate consists of two parts:

  • Part A Free to most people who have worked for 10 years covers a portion of fees incurred during hospital stays.
  • Part B Costs about $100 per month helps pay for doctor visits and associated lab procedures.

Medicare does not cover many additional healthcare costs, such as dentist or eye doctor or drug prescriptions.

Medicare Advantage – Medicare pays your monthly premium to a private insurer who enrolls you in its health insurance plans. Many of these insurers cover more services than Original Medicare, have lower copayments and offer some prescription drug coverage.