Expert: Michael Higgins - 11/11/2009

Question
I have client, female, age 60, good health who is retiring. The company she works for has 20 employees but does not provide health coverage for " persons who are retired other than required continuation". First, this statement makes no sense because they have no coverage so I don't know what the company meant.
Second, what are her options, purchase an individual policy?
Thanks

Answer
David:

The employer is saying that your client has the right to go on COBRA, but the company does not offer group coverage for retirees after COBRA expires. You are correct, an individual plan is the way to go. I prefer Blue Cross plans. If she has few pre-existing conditions it may be a good idea to buy a plan now as opposed to going on COBRA which may cost more. Remember though that if she does purchase a plan she loses the right to go on COBRA. I would apply for a plan and see what the company says. If she's accepted without waivers I would take it over COBRA due to the likely high cost.

Thank you.

Mike Higgins
www.higginscompanies.com