Bridge the Gap: Pre-Medicare Insurance for Arizonans Over 60

Health Insurance Marketplace^®

The Health Insurance Marketplace^®, or Health Insurance Exchange, serves as a federally operated resource where those who are uninsured can find information about, shop for and purchase healthcare under the Affordable Care Act (ACA). The IRS explains that you can learn about your options, assistance for paying for premiums, reducing out-of-pocket expenses and how to make coverage more affordable, among other various helpful information.¹ Depending on where you live, a state-based Marketplace may be available to you. Where you live, along with your health and income, will help determine your cost of healthcare coverage. Visit HealthCare.gov to learn more.

Short-Term Health Insurance

Short-term health insurance ensures you’re protected in the event of an accident or illness, or if you need healthcare services, during the timeframe between employee coverage and Medicare coverage. Temporary coverage is limited and not as comprehensive as other plans; however, an open network can be one advantage of short-term insurance. It’s essential to secure your financial situation in case the unexpected happens (and the unexpected can be expensive). HealthMarkets informs that short-term insurance:²

• Generally has lower premiums
• Pre-existing conditions can deny you from coverage
• Plans cover up to one year
• You may be able to reapply for up to three years
• States have their own restrictions

Short-Term Health Insurance Benefits

Before enrolling, you’ll want to check what services the pre-Medicare plan covers and if the benefits will meet your needs. For example, you may want benefits for prescription drugs, routine health services, hospitalization, emergency expenses, vision and hearing and/or telemedicine, among others. Along with coverage, some plans may offer special benefits like cash reimbursements for expenses like preventative care. Premiums and deductibles are also comparatively lower because of fewer benefits and services. Need to cancel? You can drop insurance at any time without penalty. While shopping for a plan, make sure you fully understand the policy and any restrictions or exclusions. Term plans and features vary because short-term coverage is unregulated by the ACA.³

Who is Short-Term Health Insurance For?

Pre-Medicare insurance is typically for those who:

• Need coverage leading up to age 65 and who are no longer enrolled in their employer’s or spouse’s plan.
• Want an alternative solution to Consolidated Omnibus Budget Reconciliation Act (COBRA) or who don’t have COBRA as an option (COBRA is an extension of your former employer’s health insurance and premiums are many times significantly high.).
• Don’t qualify for tax subsidy as part of Obamacare.
• Don’t want to pay for private insurance at a steep cost.

Medicare Supplemental Coverage

Plans through the Health Insurance Marketplace® and short-term health insurance are available for early retirees who need coverage before they can enroll in Medicare. Keep in mind, if you’re eligible and receiving Social Security when you turn 65, you’re automatically enrolled in Original Medicare (Parts A and B). But if you need supplemental insurance to cover additional, necessary services under Medicare, you can explore purchasing Medicare Advantage (Part C) or Medigap.