For companies larger than 100 employees, health insurance policies are no longer age based. The group takes the entire age of the company, averages it out, and provides the same rate for all employees no matter their age.

Even though you at age 65 will get a better deal than someone at age 30, these group health insurance plans still do not match the price or quality of care you can receive from a 2020 Medicare Supplement plan.

For example. I have a family member approaching her 65th birthday. She has awesome insurance through her employer Nordstrom. Her company pays half the monthly plan costs meaning she only pays $230 a month. This is extremely inexpensive considering a similar plan on the age based market would cost $800 or more.

Here is the kicker. The plan is not as good as a Supplement Plan from Medicare. Currently, her deductible through work is $2500. A great Supplement plan like Plan N or Plan G has a deductible of $198. All in with Original Medicare and the Supplement Plan N here in San Diego, she’s looking at $256.28 a month and a much better plan with almost no deductible. So for a few extra dollars a month, she can reduce her $2500 deductible to $198, have a more robust and encompassing plan, and visit any network of doctors and hospitals in San Diego.

In short, you should move from your Large Group Employer plan to a Medicare plan as soon as you turn 65.

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