Three Tips Regarding the Financial Wild Card of Health Insurance

Perhaps the biggest financial wild card for those approaching retirement is the funding of health insurance and unexpected health care costs. Because most of us would like to retire someday, and do so with peace of mind regarding our healthcare needs, the following three tips may help you stay on track:

Remember that health insurance plans have open enrollment periods, during which you may change your existing coverage, if needed.

Most plans also permit a 30-day window for changing your plan when/if there is a triggering event such as the death of your spouse, a divorce, or a change of employment.

Typically, managed care health plans are less expensive than traditional full-service plans, but such plans require a referral prior to obtaining a medical service.

Managed care plans often include vision, dental, and prescription coverages as well as benefits when you travel out of the country.

High-deductible health plans are designed to save you money on monthly premiums. But if you need more than a minimum of medical services annually, your out-of-pocket costs could escalate and eliminate any premium savings.

An effective way to cover out-of-pocket costs is to fund a health savings account (HSA). In fact, if you build up funds in your HSA, the account can be a valuable retirement asset.

Open Enrollment for Medicare begins in mid-October and our expert, Liz McClellan, shared her thoughts.