Couples, Coverage, and Retirement during the Pandemic

Health care coverage has become more complicated for couples at retirement, and retirement has become more complicated in the pandemic. In the past, a worker’s retiree health plan ensured a couple’s coverage until they were both enrolled in Medicare at the age of 65. But today, retirement doesn’t always happen then, especially during the pandemic, and retiree health plans are nearly nonexistent.

Three couples shared their concerns:

• Couple #1. She announced her plans to retire after turning 65. However, they changed when her (younger) husband lost his job and his coverage during the pandemic. Although she’s covered by Medicare, she was able to get him covered through her employer’s health plan. Now, she can’t retire—in order to keep him insured—until he is 65 and eligible for Medicare. “I am looking forward to the time when we’re both on the same plan again (and happily retired).”
• Couple #2. He also wanted to retire. “I keep pushing back the date to keep our medical coverage.” He and his wife were enrolled in his employer plan. If he retired, he was eligible to enroll in Medicare; however, his wife was not yet 65. At retirement, he would pay for her to be on COBRA so that she didn’t have to change health plans. But once COBRA ran out, she would need to find a plan on the federal marketplace. Hopefully, the plan would include her doctors and hospitals.
• Couple #3. During the pandemic, his firm offered an early retirement package as part of cost reduction efforts, which he “accepted reluctantly.” The package included health insurance for several months. Afterwards, he and his spouse would need to find their own coverage until they become eligible for Medicare. Their options include COBRA and a federal marketplace plan until they become eligible for Medicare. Fortunately, they have some time before they have to go shopping and make decisions.

Only in America is health insurance this complicated. In advanced countries around the world, health care coverage is not dependent on employment, nor is it affected by retirement. But it’s not an ideal world, and these couples illustrate the complexity of the U.S. health insurance systems. They’d be better off with one system for everyone. In the meantime, they’re Mastering Health Insurance.

Photo: A couple of turtles in South Pond, Chicago