Health

For some retirees, health coverage is less generous than it was when they were working, and they pay the full cost of premium payments. For others, the employer pays the full premium cost of coverage, which is the same as provided to active workers. In fact, employers differ in:

• Health coverage eligibility requirements (e.g., age or tenure rules);
• Level of health benefits (e.g., deductibles, copayments, or covered services provided to retirees and active workers); and
• The shared cost of health insurance premiums.

An option for insured workers in the months after retirement is COBRA (Consolidated Omnibus Budget Reconciliation Act, 1985) continuation coverage. Under COBRA, workers in companies with 20 or more employees who have health insurance while working are eligible to continue health benefits at 102 percent of the group rate for 18 months after retirement.

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