Kevin McCormally: I am Kevin McCormally of Kiplinger's and I am with Kimberly Lankford Insurance Editor of Kiplinger's Personal Finance magazine to talk about Health Insurance for every stage of your life. Kim when children graduate from college that's usually when their parent's employers throw them off on the Healths coverage plan, what's a new college graduate is supposed to do?
Kimberly Lankford: Well you can actually stay on the parent's plan through a federal law that let's you stay on there for three years after you graduate from college. The down side is since you are not getting the employer subsidy to how pay the bills, the cost could be a lot more than what you are use to. So you may actually get a better deal with something called a Student Health policy. Usually you need to get these by you are still in school but the key is you have maybe able to keep that long after you have graduate from college, that can hold you over until you get coverage through your own job.
Kevin McCormally: Okay, and that new grad finally gets your job, probably going to get insurance from the employer, how do you decide what to do which policy have take advantage wise?
Kimberly Lankford: Sure some employers do offer your several choices and you need to look both at premiums, as well as your out off pocket expenses, your deductibles, your cone payments for the types of care that you usually have. So out of those total cost and see which is the best deal.
Kevin McCormally: And you see there is sometimes a real dilemma when people get married and both spouses work and they each have offerings from their employer's for health insurance?
Kimberly Lankford: Yeah, some employers now are starting to offer people bonuses for not taking their coverage. So don't automatically stay on your policy take a look and see what will cost to for both of you to go on one spouse's policy. It also the same situation when you have a child, some employers may charge more for family coverage than others. So just do some of that math before you figure out which policy to have your child on.
Kevin McCormally: Okay, can let's fast forward to everybody's dream, early retirement. If you retire before 65 when Medicare kicks in that can be a real problem for people. How with their cover their health needs?
Kimberly Lankford: That is the toughest time for people with Health Insurance because you aren't qualified for a Medicare, and you are not at age 65 yet. At that point you could stay on your employer's plans similar to what the college students could do, for after 18 months but just a not same situation you won't have the employer subsidy any more. So you may have very high expenses.
Kevin McCormally: What are the choices are then?
Kimberly Lankford:: Well if you are healthy you maybe able to get a individual policy and if you get a high deductible policy that can lower your premiums and also qualify you to set a side money that you can use tax-free for medical expenses and a health savings accounts.
Kevin McCormally: Okay, we finally to make it to 65, the governments Medicare kicks in what we need to know about that?
Kimberly Lankford: Well even though you have the bulk of your coverage Medicare you still need to fill in some gaps and there is a few ways to do that. You can get a Medicare Supplement policy and Part D prescription drug policy or you can get all-in-one coverage through a Medicare Advantage plan. The good thing is if you go to www.medicare.gov, they have a Medicare Options Compare Tool that makes it really easy to see your options on the costs.
Kevin McCormally: Okay, Kim, stay healthy.
Transcription by:
Scribe4you Transcription Services