• 6,000 Americans turn 65 every day.
• One in 77 Million baby boomers reaches 50 every 7 seconds – 4 Million a year.
• In 2001, 77 Million Americans were 50 and older – 28% of the population.
• In 2020, Americans over 50 years old will account for 38% of the population.
• In 25 years, over a million people will be 100 years old or older.

Medically speaking, Americans age 50 and over account for 77% of all prescription drug purchases and 61% of the over-the-counter drug purchases. However, 85% of Americans over 50 have health insurance.

Want to retire prior to reaching age 65? Access to health insurance coverage is a big consideration. If you are healthy, purchasing an individual policy is an option. The coverage will be more restrictive than a group policy but the premium could be lower. A pre-existing condition clause may apply. State Extension of your existing health policy or COBRA will allow coverage for 18 months. If you are age 63½ at retirement, this may be the best option. A program called Cover Colorado is available to anyone denied coverage because of health reasons. This would be an option for employees under age 63½ at retirement. Finally, if your spouse is still working and has health insurance, you may be added to that policy. Leaving your job is considered a "change in status" and enrollment in your spouse’s policy should be allowed.

If you decide to continue working after age 65, you may still enroll in Medicare and start receiving benefits. Medicare will be primary or pay first on any claim if your organization has 20 or less employees. Rates are adjusted or reduced to reflect that situation. If your organization has more than 20 employees, the group plan pays first and Medicare pays second. For example, Helping Hands Nonprofit has 15 employees and pays 80% of the premium for a group health plan for the employees. Henry is an employee at Helping Hands Nonprofit and will be 65 years old next month. He has decided to enroll in Medicare Part A and Part B and continue his coverage under Helping Hands Nonprofit group health plan. He has a claim for an expensive antibiotic. The claim is sent to Medicare for review. It will be denied as Henry did not purchase Part D, the prescription drug plan. Then, it is sent to Henry’s carrier for review and payment based on the plan.

Medicare Part A provides institutional care (inpatient hospital care, skilled nursing facility, post-hospital home health care and hospice care). There is no cost for Part A. Medicare Part B provides physician services, outpatient surgery, ambulance, durable medical equipment, etc. The 2007 cost is $96.40 per month. Part D covers prescription drugs and is purchased from the insurance company you select so the premium varies.

Medigap or Medical Supplement policies may be purchased to cover the costs not paid by Medicare Part A or Medicare Part B.

You may decide to purchase Medicare Advantage (Part C). This policy replaces Part A and Part B. Services are provided by a private insurance company. You may be required to use the carrier’s network to access physicians and hospitals. Prescription drug coverage may be included. The cost to you may be less than under Part A and Part B.

A good source for additional information is www.medicare.gov.