While Medicare isn’t a one-word answer to the question of health insurance in retirement. Research and financial planning will get you the right retirement coverage.

If you retire early and you do not have a disability you will not qualify for Medicare until you turn 65. Once you are eligible Medicare still can’t provide all the coverage you need; only about half of retiree health expenses are covered by Medicare, according to the Employee Benefit Research Institute.

A little research into long-term care insurance, employer retiree insurance plans, COBRA, Health Savings Accounts and Medigap coverage programs will arm you with the knowledge to identify your retirement insurance needs and make your financial plans accordingly. Here’s what to do:

SHORE UP YOUR SAVINGS

Health insurance premiums and out -of-pocket expenses could be a major cost during your retirement years. A couple at age 65, facing a normal lifespan, could spend as much as $295,000. Therefore, it pays to make sure your retirement savings are on track now.

BUY LONG-TERM CARE INSURANCE

Consumer Reports Magazine recommends waiting until you are 60 before buying LTCI unless your family has history of illness. You can learn more about long-term care insurance here.

FIND OUT IF YOUR EMPLOYER OFFERS RETIREE INSURANCE

This is the simplest and often the most cost-effective way to make sure you are covered until Medicare kicks in. Unfortunately, many companies no longer offer this benefit, and there are no laws requiring employers to provide it. If you don't have access to this insurance, there are other choices, including COBRA -- which covers qualified employees for 18 months after leaving a job--or obtaining an individual health insurance policy.

SET UP A HEALTH SAVINGS ACCOUNT

These are tax-advantaged accounts you can start with banks and insurance companies, but you must be enrolled in a high-deductible health plan to qualify.
Contributions for these accounts can reach annual highs of $2,700 for an individual or $5,450 for a family, and these caps are set to rise each year to meet inflation (If you’re over 55, add $700 to these figures). The maximum amount you can save is $46,400 over ten years. When withdrawn, the money is tax-free, as long as it is applied to medical expenses. What you don’t spend rolls over into the next calendar year.
After you’re 65 you can use this money for any purpose without paying a penalty, although you will pay taxes for non-medical expenditures. There are other restrictions, and the regulations may change, so be sure to read the fine print.

LEARN ABOUT MEDIGAP COVERAGE

In order to bridge the gap between what Medicare will cover and the full coverage you need, most seniors will need to sign up for Medigap insurance.
Now regulated by Congress -- to prevent scams -- Medigap comes in 10 variations, depending on where you live and which company you choose. Some plans offer more coverage or less, and prices vary considerably, often depending upon your age.
Medigap is complicated, but essential. Call an AARP representative for help making this decision; some AARP members may qualify for better rates. To find your local AARP representative, visit www.aarp.org.

JOIN A HIGH-RISK POOL, IF NECESSARY

These are state-run insurance pools that can cover people who are rejected by private insurers because of poor health. Twenty-nine states offer high-risk pools, and well over a million people qualify for them. If you’re being turned away because of pre-existing conditions check with your state’s insurance commission to see if this option is open to you.

THE BOTTOM LINE

Medicare only covers part of your health insurance needs in retirement. To make certain that you are fully insured in your golden years, keep your savings on track, do plenty of research and be prepared to pay a significant amount for supplemental coverage.