Medicare Buy-In for Boomers 55+

It seems that the Boomer generation is in a no man’s land when it comes to many things. Too old for this, too young for that. And Medical coverage is at the top of the list. Especially if you are ready to retire.

The issue is that if you retire early and try to keep your health insurance, it costs a fortune that most people cannot afford. On the other hand, finding your own individual plan can also cost an arm and a leg and provides less coverage than your medical coverage from work.

There may be a solution coming soon. Medicare may shortly have a buy-in for individuals between 55 and 64 years of age. This could solve a great many problems. The doctors and hospitals would get paid. The insured would be able to continue with their services and with their personal physician in most cases and the Medicare system would have money coming in to offset the expense of treating this group of people.

In addition, statistics show that people age 55 to 65 usually have less medical issues and less medical treatment than most people 65 and older. As a group, they have taken care of themselves better, they are healthier – or at least, the onset of serious health issues that come with age haven’t set in yet – and they tend to see the doctor less, using prevention rather than a cure.

The Medicare Buy-In may take a little time to put into place. Lawmakers are working out the details that would help cover the over 5 million boomers between age 55 and 64 who are uninsured. There would be premiums on a monthly basis to the tune of a few hundred dollars, but the premiums should be less than keeping up with payments for the insurance from the old job and COBRA.

Though the idea has been discussed for years, conditions right now are just right for a program like this to start. For questions, contact the Medicare office nearest you.

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Medicare for Boomers at age 55?

What happens to a Boomer when he or she is 55, has worked his or her 20 to 25 years and is ready to retire?  Good question.  What happens if this same Boomer wants to begin a second career at least until they are 62 or 65 – actual retirement age.

Too young for Medicare at 55 but retiring.  Besides COBRA, what is available?  In some cases, employer insurance can continue, usually through COBRA or through a switch to a private policy, too often with high premiums and much less coverage.  Unless this 55 year old has retired with an excellent income and a ton of savings, the cost of insurance can be prohibitive.

However, there have been suggestions that 55 year olds that are eligible for retirement should be able to buy into Medicare and pay ad least modest premiums.  Since this is a younger age group, usually with less health issues – especially less serious or long term heath issues – premiums would offset other Medicare expenses of the current recipients who are older, and they could help fortify and supplement the current program.  In addition, part of these premiums for the 55 year olds could be used to put in a savings account that will provide some modest supplements to the 55 year old early retirees until they reach the age to actually draw Medicare and Medicaid, and the government could borrow from the interest on that money to help supplement current or future premiums. 

The issue of early retirement of Boomers, as well as what they can and will do is an important one and needs to be explored thoroughly so as to create an appropriate solution.  It is hopeful that the time will be taken to research the issue at great length and several solutions can be proposed that will help a great many people now and in the future.                                  

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