Retiree Insurance is less common than it used to be, but is still available to certain groups of people. Some examples are: government workers, teachers, and unions. Usually the degree of benefits are based on years of service. Medicare is generally primary to retiree insurance, so you must enroll in Parts A and B, and pay the Part B premium. An exception to this is FEHB (Federal Employees Health Benefits), in which you do not have to sign up for Part B, but if you decide to later, you will have to pay a late penalty.

You may compare your retiree insurance to a Medicare Supplement or Advantage in a similar fashion as someone comparing employer coverage. If you decide you can get better coverage with a Supplement or Advantage Plan, you may drop your retiree insurance. This must be a well thought out decision though, since you will most likely not be able to go back on the retiree coverage. Many retiree plans will offer better drug coverage than Medicare, so what medications you are on can make a difference. Also, be aware that discontinuing your retirement plan would affect any other person who is covered under the plan, such as a spouse.