Alternatives to Medicare, Part IV
Good to Know
This is the final article of a IV-part series to help early retirees make informed healthcare coverage choices when they retire before age 65—and are ineligible for Medicare. The previous three parts in the series were:
We’ll begin with an application summary of these three articles.
Application Summary
| Coverage Type | Client Application |
| Faith-Based Cost-Sharing | Clients seeking relatively low premiums and willing to abstain from smoking, alcohol, marijuana, illegal drugs, and pre-marital sex may be attracted to this healthcare. Abstention requirements apply to everyone covered under the plan, including dependents. Annual and lifetime benefits may be limited. |
| Affordable Care Act Policies | Clients willing to pay significant premiums (subject to subsidies for low-to-moderate income clients) and seeking guaranteed acceptance, no annual or lifetime coverage limits, and free preventive services should at least consider this healthcare coverage. |
| Short-Term Limited Duration Insurance | This coverage should be considered coverage of last resort or when the need for coverage is uber short-term. Premiums can be marginally lower than some ACA policies but ACA minimum essential coverage rules do not apply. |
Next, be aware that qualifying individuals under age 65 may be conditionally eligible for Medicare coverage if:
- They received or were entitled to receive Social Security Disability Income benefits for 24 months,
- They receive a disability pension from the Railroad Retirement Board (other conditions apply),
- They have permanent kidney failure (end-stage renal disease), or
- They have Lou Gehrig’s disease (ALS).
In closing, remember that early retiree clients with even modest net worth and income need health insurance coverage to avoid uninsured and potentially bankrupting health care costs. If no other healthcare insurance is available, alternatives such as the ones in this series may be worthy of consideration in consultation with an experienced insurance professional.
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Disclaimer
The information presented herein is provided purely for educational purposes and to raise awareness of these issues; it is not meant to provide and should not be used to provide financial advice of any kind—including but not limited to legal, identity theft protection, investment, income tax, risk management, retirement, or estate advice. Consult an experienced, credentialed expert for detailed guidance.
