- Group employer plans
Health insurance benefits for retirees are an expensive benefit that many private sector employers no longer offer. Nonetheless, the Conference Board of Canada’s 2012 Benchmarking study found that more than half of medium and large business owners who responded to the survey offer all or some of their employees some form of retirement medical expenses. In the public sector, this proportion increases to two-thirds.
The cost of health insurance tends to be significantly higher for retirees than for active employees, and more than half of employers who offer some form of retiree health insurance require their former employees to pay the premiums in whole or in part.
- Continuity regimes
The continuity plan is suitable for people who are no longer eligible for their employer or association’s group health care plan. If you were part of a group plan, you could opt into a continuation plan within a specified time (usually 60 days) after you leave the group plan.
You do not have to complete a medical questionnaire or pass a medical exam to be eligible. Therefore, it may be wise to investigate this option if you have health conditions that could make you ineligible for individual insurance.
The premium amount is based on your age when the new insurance. You could choose basic coverage or more comprehensive coverage that includes dental coverage and higher maximums if you had this type of coverage while covered under your group plan.
- Individual Personal Health Insurance Contracts
To purchase an individual personal health insurance policy, you must provide medical information. Depending on your state of health, the premiums could be higher than those of a continuity plan, or you could be offered modified coverage.
It is recommended that you work with an insurance advisor who fully understands the eligibility criteria and benefits offered and who can help you through the insurance application process.
Individual contracts are offered with levels of protection. Your premiums will be based on the type of policy you choose and your state of health, and your age when the procedure takes effect. It is not possible to take out only dental care insurance.
Whether you plan to participate in a group plan or purchase a continuity plan or an individual health insurance contract, it is advisable, if you are uncertain about the specifics of your project, to start with a product that is more complete and to switch to a more basic diet later, if necessary. Why? Because if you buy a basic plan from the start and want to upgrade to a more comprehensive plan later, you will have to submit new medical information when the reduction in coverage is only an administrative change to your contract.
When comparing continuity plans to individual contracts, here are the questions you should ask:
How much are the premiums, and what protection do they provide?
If I take out spousal insurance, will I have a premium reduction?
Are the annual and lifetime maximums for all paramedical service providers cumulative (e.g. a total of $500 for massage therapy, physiotherapy and chiropractic care) or individual (e.g. $350 for each type of service)?
