How to Maximize Health Coverage When Working Past 65

Working past 65 has become a lot more common these days. Whether you want to keep your cash flowing, aren’t ready to say goodbye to your career, or are trying out something new, you’re not alone. In an article published in 2017, the New York Times reported the following: “According to the Pew Research Center, in the year 2000, just under 13 percent of Americans 65 and over reported being employed full or part time. By May 2016, that figure had jumped to 18.8 percent — meaning that nearly nine million Americans 65-plus were gainfully employed. Over the next five years, that number is expected to increase to 32 percent.”

While many Boomers are enjoying the advantages of working past 65, they are faced with some confusing, and often conflicting, information about making the most of their health coverage. When deciding how to proceed with your coverage, take the time to complete the following steps while asking the right questions. The answers can result in a significant difference in your finances, and more importantly, your health.  

1. Compare the cost of staying on your employer's group plan (the premium plus out-of-pocket costs) versus enrolling in Medicare, a Medicare supplement, and Medicare prescription plan. (Again, add the total premium to your out-of pocket costs.)
2. When making the comparison above, also consider under both scenarios whether your doctors and hospitals participate in the group plan's network or Medicare.
3. Think about how much travel you will do in the coming years, both outside your home state and outside the United States. How will travel impact your health coverage? Keep in mind that Medicare usually does not cover medical care you receive when traveling outside the U.S. and its territories.
4. Check the account balance of your Health Savings Account. Do you plan on continuing your contributions to that account past the age of 65? If you enroll in Medicare, you will not be able to continue.
5. What is the age difference between you and your spouse? How will they get health coverage if you enroll in Medicare? If your spouse is younger, it may be more beneficial to stick with your employer’s group plan so you can carry your spouse’s coverage as well.

Following these steps will probably bring some clarity to the direction you should take with your health care coverage. However, there may be a number of other details to consider and weigh as well. For security, peace of mind, and a healthy future, talk to E.S. Beveridge to learn more about how you can maximize your health coverage.