ABA Family Legal Guide

The Rights of Older Americans

Pensions

Traditional Pension Plans

What if I get sick after retiring? Will I still have health insurance?

Companies are not required to continue to provide health insurance after retirement. But when they have promised to do so, some courts are requiring them to keep that promise. Under a 1985 federal law known as COBRA (Consolidated Omnibus Budget Reconciliation Act), you must be notified when you retire that you may continue coverage, but your employer may require you to pay the premiums. Coverage generally lasts for eighteen months after you stop working, but may be extended up to twenty-nine months if you are found eligible for Social Security disability or supplemental security income (SSI) disability benefits. You also will be eligible for Medicare at age sixty-five or possibly earlier if you qualify for disability under Social Security or SSI.