Group Health Insurance Coverage Post-Retirement, Check Requirement and Cost Involved


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Insurance is an indispensable requirement. However, not everyone can afford individual medical insurance to stay covered against major uncertainties, especially after retirement. If that is your case, you may try the group health insurance plans, which are less costly but equally beneficial. Read on to know more! 

Group Health Insurance, or GHI, as it is commonly termed, is an employee benefit plan that protects policyholders against financial and medical emergencies. In this post, we will discuss group health insurance policy for employees in detail.

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Requirements for Group Health Insurance 

Group Health Insurance is a health insurance policy that covers a group of employees of an organization under a single plan.

Depending on the employer and the policy, the requirements of a group health insurance coverage might vary. However, there are some general factors that are commonly considered under most plans. They are:

1. Age of Retirement:

Some GHI or group health insurance plans require retired individuals to reach a certain age to consider them eligible for continued coverage post-retirement. Depending on the plan, the age might vary. However, in most cases, it is 65 years.

2. Years of Service:

Some group health insurance plans require employees to have a certain number of years of employment with their employer to be considered for post-retirement GHI coverage. This also varies depending on the company and may be between 5 to 20 years.

3. Continuation of Coverage:

Some group health insurance plans allow retired employees to continue enjoying their GHI coverage by paying the required premium on their own.

All the above and many other factors are considered for post-retirement Group Health Insurance plans. However, you must note that all the above requirements might vary depending on a particular plan and the employer. Thus, reviewing the policy documents to understand the eligibility requirements for GHI or group health insurance coverage post-retirement is good.

Cost Involved in Group Health Insurance 

When it comes to the cost of GHI or Group Health Insurance, it varies depending on varied factors. Some of them are:

  • Size of the group
  • The coverage types
  • The insurance company etc.

Generally, GHI coverage for retired individuals is costlier than for active or working employees. This is because older adults are at a higher risk of health conditions than young ones. Also, the retirees need enhanced coverage as compared to the employees who are working and are active.

Some companies let employees continue their group health insurance coverage even after retirement. However, the retirees should pay the full cost of the coverage on their own. On the other hand, in some cases, retired employees may be eligible for different post-retirement group health insurance plans available at different costs and benefits as compared to the plan offered to employees who are currently working.

Hence, in such cases, the retiree might consult the insurer or the employer to understand the costs and related benefits offered under GHI coverage post-retirement.

More About Group Health Insurance Post Retirement

  • Employees who are part of a Group Health Insurance plan offered by the employer may continue with the coverage even after retirement
  • In some cases, employers may allow retired employees to enjoy the benefits of Group Health Insurance as a part of their pension package. Here, the employer may entirely or partially subsidize GHI coverage for the employee, or the person might have to pay the full insurance coverage on their own
  • Even if the employer doesn’t agree to offer the GHI benefits after retirement, the employee may continue the plan under the COBRA Act or Consolidated Omnibus Budget Reconciliation Act for a limited duration
  • As per the COBRA Act, the employees can continue to have coverage under the GHI for up to 18 months after retirement
  • Besides the COBRA Act, there are other laws in some states that require companies to provide health coverage to employees post-retirement. However, these laws differ depending on the particular state. And so employees are required to check with the state insurance department to know if they fall under any eligibility category for continued coverage under any specific state law

Overall, the eligibility for Group Health Insurance coverage after an employee retires depends on the terms of the employment and the retirement benefit plans.

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As discussed above, Group Health Insurance post-retirement is an option that benefits retirees in many ways, and people planning for retirement should consider this option. Retired individuals who are eligible for group health insurance provided by their former employers are better placed in this regard as they can continue to enjoy the benefits of the earlier coverage without looking for a new plan. However, retired individuals who are not eligible for their earlier GHI coverage may look for new policies or alternate sources like another Group Health Insurance policy.

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FAQs: Group Health Insurance Coverage Post-Retirement - Requirement and Cost Involved

What are the best group health insurance policies in India?

~ Bajaj Allianz Group Health Insurance
~ Cholamandalam MS Group Health Insurance
~ Bharti AXA Group Health Insurance
~ Digit Group Health Insurance

What are some group health insurance benefits?

~ They are easy on your pocket
~ They offer an easy claim process
~ These are some value-for-money plans
~Covers PED or pre-existing diseases without a waiting period

Who is eligible for group insurance in India?

Individuals eligible for group health insurance in India are government employees or a company with 20 or more employees.

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Jan 23, 2024
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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