Choosing Your Health Plan

If You Retire When You’re 65 or Older

If you retire when you’re 65 or older, you can sign up for Medicare. Here’s a look at how it works and other health insurance options.

What is Medicare? Medicare is the US health insurance program for people 65 and older (and for those with disabilities or certain illnesses). It has different parts that cover different things. You can choose the parts that best meet your healthcare needs. If you have health insurance through your (or your spouse’s) employer, you can probably wait and sign up for Medicare when you (or your spouse) retire. But in some cases, you may need to enroll in Medicare when you turn 65, to avoid gaps in coverage or late enrollment penalties.

How does Medicare work? Part A (hospital insurance) covers inpatient hospital stays, skilled nursing facility care, hospice care and some home health care. Part B (medical insurance) covers certain doctors’ services, outpatient care, medical supplies and preventive services. Parts A and B together are known as Original Medicare. Click here for more information on Original Medicare and how to sign up. Prescription drugs are not covered under Original Medicare. If you need prescription drug coverage, you’ll need to add a separate plan. This is known as a Medicare prescription drug plan (Part D).

Medicare Advantage (Part C). Part C can give you coverage for Parts A, B and often Part D in one bundle. Part C plans, known as Medicare Advantage plans, are offered by Medicare-approved private companies. Common types of Medicare Advantage plans include Health Maintenance Organization (HMO) and Preferred Provider Organization (PPO) options. You canlearn more about these plans and how to join here.

Medigap. There’s another health insurance plan option, called a Medicare supplemental insurance policy (Medigap). You can add this to Original Medicare. A Medigap policy can help pay for certain healthcare costs, such as deductibles and copays. Keep in mind that you generally can’t have a Medicare Advantage plan and Medigap at the same time. You’ll need to choose one or the other.

Dual eligibility for Medicare and Medicaid. If you’re eligible for Medicare and Medicaid, you’re considered dual eligible. If you’re dual eligible and visit a doctor who accepts Medicare and Medicaid, Medicare will cover the services first and Medicaid will cover most costs that Medicare won’t pay, such as copays and any deductibles. To learn more about how Medicare and Medicaid work together, click here.

If You Retire from the Military

You may be able to sign up for health benefits if you retire from the military. The US Department of Veterans Affairs offers VA health benefits if you served in the active military, naval or air service and meet certain conditions. You’ll be covered for health exams with your doctor, specialist appointments, home healthcare and more. Find out if you’re eligible here. You also may be eligible for TRICARE health insurance if you’re a military retiree. This is a federal program managed by the US Department of Defense. There are different TRICARE plans, including a plan for retirees who have Medicare Parts A and B. Learn more about TRICARE and if you’re eligible here.