Health Care Collaboration

Lots of people have trouble finding major medical insurance with premiums that fit into a budget. But people who are over fifty, but not yet sixty-five, can be particularly hard hit. At 65, most Americans qualify for Medicare and Medicare health plans. Younger people tend to be healthier because they have not started to get some of the health problems that hit us in middle age. Because the insurers figure that middle aged people will be more expensive to cover, they tend to charge more if they offer coverage to individuals.

But, we Baby Boomers are a smart group and where there is a will, there is a way. So let’s look at some of the options:

Group health plans, through employers, are one good option for many people. Your company, or your spouse’s employer, may have a group health benefit which will allow you to get coverage. Most employers pay part of the premiums too. Besides, federal rules protect employees from being declined because of health risks. This is one option if you, or your spouse, have this benefit at work.

The next option (if you currently have a job which provides health insurance) is COBRA or Consolidated Omnibus Budget Reconciliation Act. COBRA lets former employees and their dependents continue their employer’s group coverage for up to 18 months. The best thing about COBRA is it is guaranteed. Your former employer’s insurer can’t turn you down even if you have a chronic medical condition. The worst thing about COBRA is the cost. Your employer generally covers 70% or more of your health insurance premium. With COBRA you have to pay the whole premium plus administrative costs. Industry surveys indicate based on an average premium (for 2007), a former employee would have to pay more than $373 a month for individual coverage and more than $1,008 a month for family coverage.

If you are not currently employed by a company who provides health insurance there are still choices for you. If you have pre-existing conditions such as diabetes or high blood pressure you can receive coverage through a state high-risk health program designed to help those with medical conditions that prevent them from getting insurance. Again though like COBRA the premiums can be quite high.

Some people get their coverage through a professional alliance. These plans may use their buying power to get higher benefits or lower prices than an individual could bargain for. If you are a member or any organization, check out this option.

Finally, there is the individual health insurance option. There has been some progress in terms of offerings of policies for the 50-65 year age group market mainly because insurers see this age group as a potential growth market. Many Baby Boomers are in good health and have higher income than younger people. Also insurance companies hope that retirees will still purchase their products, such as supplemental insurance, even after they’re eligible for Medicare. Some of policies currently offered may have premiums as low as $200 per month for people who are in good health and willing to pay a high deductible. Many insurance advice columnists recommend combining a high deductible individual health insurance policy with a health savings account. HSA contributions are made with pretax dollars, and any money left over in the account at the end of the year is rolled over for future use. Withdrawals are not taxed if used for qualified medical expenses.

To help you decide which one is best, , you can also compare health insurance .