One last item before FIRE: Health Insurance

[wantingToGetOut]

I will be FIREing in the next 3 months or so.

The one last big item on my ToDo list is acquiring Health Insurance for my family.

I have always had health insurance through my jobs so this is a new world for me.

Are their any tips people could recommend in terms of how to secure the best price? Are their any obvious groups I should join to obtain a group rate?

What is the best way to go about this process to make sure I don't leave any obvious money on the table?

Thanks

 

[Stevewc]

I'm not sure what to tell you as far as price.
I do think you should start your applications very soon to be sure you get approved for coverage though.
Not sure of your age or family members age but this can make a big difference with the price you will get. (edit: Just noticed you are in your 40's with 10 year old) You will get better prices than I got .
I ended up with a blue cross individual 750 family plan. You can also call these insurance companies, they will assist you in choosing a plan suited for your personal situation. I think big blue gave me good advise when making my decision. But this is my first retirement year. Those with more experience may recommend something different. It will be interesting to follow this thread to see.
You can go to their site, put in your information and see the prices. The prices I got were the same as the ones listed at their web site. They also locked me into the price for one year. Not sure what will happen at the end of this year but most folks see increases.
Hope this helps, its a start at any rate.
Steve
PS. A lot of forum members go with higher deductibles than I chose.

 

[RunningBum]

ehealthinsurance.com is a good place to start shopping. Whenever I've checked prices directly with the provider they are the same.

 

[Martha]

An independent agent can be helpful as well. I second checking eheathinsurance.com.

 

[wantingToGetOut]

hi all,

Thank you for the responses.

I think my original question was poorly worded. I have some knowledge in how to obtain health insurance for my family. What I was more curious about was how to obtain a group rate type price.

I have heard that there are groups that one can join for a yearly fee, like the Chamber of Commerce, that might get one a better price than I could get as an individual. I was wondering if there were any specific techniques that people used to help with the price.

I have problems using ehealthinsurance.com for some reason. I choose Individual and Family, plug in my zip code, add my family information and it always returns 0 plans. I may have to give them a call directly.

I do think my wife was happy with our current Blue Cross Blue Shield so I may call them directly as well and see what they suggest.

 

[Martha]

Unfortunately, people seem to rarely get a better price going through one association or another for insurance. It is still not a group plan, underwriting is required and pricing is much the same as any non-group plan. So the chamber, the bar association, AARP and others really don't have much to offer. Once there was an association plan for engineers that was very favorable but I understand the plan is no longer available.

 

[wantingToGetOut]

Unfortunately, people seem to rarely get a better price going through one association or another for insurance. It is still not a group plan, underwriting is required and pricing is much the same as any non-group plan. So the chamber, the bar association, AARP and others really don't have much to offer. Once there was an association plan for engineers that was very favorable but I understand the plan is no longer available.

OK thank you, that seems to make some sense. I was actually going to look into the IEEE (the engineering plan you were referring to I think. Wife and I were both engineers for our whole career) plan. I will double check just to make sure it is not available

 

[Coach]

Keep COBRA coverage in mind. It might be the best value, and you are guaranteed coverage at your group's rates. The downside is that it's generally only good for 18 months.

Coach

 

[wantingToGetOut]

Keep COBRA coverage in mind. It might be the best value, and you are guaranteed coverage at your group's rates. The downside is that it's generally only good for 18 months.

Coach

thank you for the advice.

I originally did not want to think about cobra because I figured I should just go through the hassle now of getting new insurance since the Cobra would run out but I did not realize that Cobra allowed me to get my company's group rate.

I will look into this some more. Thanks again.

 

[Martha]

You might also want to read our FAQ on buying private health insurance: http://www.early-retirement.org/forums/f47/faq-archive-buying-private-health-insurance-30756.html It is geared more for people who may be uninsurable but has information and links that may be helpful to you as well.

And the one on health savings accounts: http://www.early-retirement.org/forums/f47/faq-archive-health-savings-accounts-hsa-30762.html

 

[wantingToGetOut]

You might also want to read our FAQ on buying private health insurance: http://www.early-retirement.org/forums/f47/faq-archive-buying-private-health-insurance-30756.html It is geared more for people who may be uninsurable but has information and links that may be helpful to you as well.

And the one on health savings accounts: http://www.early-retirement.org/forums/f47/faq-archive-health-savings-accounts-hsa-30762.html

sweet, will read both through. Thanks!

 

[DeborahB]

I originally did not want to think about cobra because I figured I should just go through the hassle now of getting new insurance since the Cobra would run out but I did not realize that Cobra allowed me to get my company's group rate.

Just to clarify, you keep the group rate but you pay the whole price plus usually a 2% administration fee. However, it is a group rate. Your employer is probably subsidizing it while you are employed. Mine comes with vision included and dental as an option, all under COBRA, all for 18 months - I just checked on it Friday.

 

[RunningBum]

OK thank you, that seems to make some sense. I was actually going to look into the IEEE (the engineering plan you were referring to I think. Wife and I were both engineers for our whole career) plan. I will double check just to make sure it is not available

They killed it a few years ago and their rates were terrible anyway. Looks like they have catastrophic care and medicare supplement but no basic medical plan. If you find they do, carefully look at the rates.

 

[easysurfer]

I'd also suggest, if you haven't already, get a copy of your medical records so when you apply, you have that history in front of you.

 

[Htown Harry]

ASCE still offers an affilated HSA healthcare plan to members in about 35 states.

Group Comprehensive HealthCare HSA High-Deductible Insurance Plan - ASCE Member Insurance Program

I had a disability policy through ASCE at one time. I have also had term life through this program for years (no claims yet ).

But I have no information on their health program, other than it exists and has been offered for many years.

 

[scrabbler1]

When I reduced my weekly work hours from 20 to 12 back in 2007, I switched to COBRA which was a much better deal than I could get in the individual market. I was able to keep dental, too, which was crucial because I needed some dental work in those next 18 months.

In 2008, I found a decent individual plan through ehealthinsurance.com and switched to it after COBRA expired. It doesn't have dental, but if you don't have any big dental expenses beyond checkups and maybe a small cavity here and there, you pretty much break even. I needed to find a decent individual plan whether I retired or not (I did retire in late 2008) although it was finding this plan which was one of the last big hurdles to retiring when I did.

 

[wantingToGetOut]

In case their are other Mass people on here, ehealthinsurance.com will not work for any zip code in Massachusetts.

I called ehealthinsurance and they said so many of the providers are butting heads with the state that they, hopefully temporarily, do not have access to the information so anyone with a Mass zip code will always show up with "no plans available", which was the problem I ran into I mentioned earlier in the thread.

If people are looking for health care in Mass, they need to use the following link:

https://www.mahealthconnector.org/portal/site/connector/

 

[wantingToGetOut]

In general, do Dental plans cover anything for braces?

Outside of that, I think I would simply do a pay as you go instead of getting insurance at least for the first few years of retirement.

 

[wantingToGetOut]

ASCE still offers an affilated HSA healthcare plan to members in about 35 states.

Group Comprehensive HealthCare HSA High-Deductible Insurance Plan - ASCE Member Insurance Program

I had a disability policy through ASCE at one time. I have also had term life through this program for years (no claims yet ).

But I have no information on their health program, other than it exists and has been offered for many years.

Thanks for the info. Sadly, Mass is one of the states that is excluded from this policy.

 

[ziggy29]

They killed it a few years ago and their rates were terrible anyway.

Any plan that is ALL of the following:

* Group rates without underwriting
* Not subsidized by employers, governments or other group
* Not mandatory

Is going to have massively unsustainable adverse selection which will kill the plan.

 

[KB]

You might check with your current insurance and see about converting to an individual family plan with them. They might have a conversion plan without underwriting and an individual plan with underwriting. When I retired, I was pleasantly surprised to find the individual plan very affordable.

 

[Da Nag]

Insurance is the final piece of the puzzle for us as well, although we're still about 9 months out from ER.

I'm wondering if what I'm seeing is typical, though...I'd love to use COBRA for my wife and I, but the cost is insane compared to getting a new policy. Certainly a bit of an apples to oranges comparison, given the difference in co-pays, deductibles and coverage...but it's not even close.

We've three options at work that cost about the same, although only one of them is a COBRA option - the other two don't offer coverage where we're moving. For the two of us, our employer group plan is just under $1200/month. Looking at plans available to us via the ehealthinsurance site, there are numerous plans just over $300/month, with several that look pretty decent for under $500. Rates are quoted for age ~50 for both of us, no health issues.

Again, coverages/deductibles are certainly different - but is this a typical disparity between COBRA/group plans and individual? If we had health issues, COBRA might be needed...but I just can't see the wisdom of it for us.

 

[wantingToGetOut]

after doing lots of web surfing and calling, it looks like we have settled on Cobra.

It is roughly equivalent in price to the individual policies but with much better coverage/deductibles etc.

I am so jealous of you guys in other states. Our Mass. health plans are very expensive.

We will stay on Cobra for the 18 months at which point we hope the rules governing the national health plan will be more clear.

With us being retired and having almost no income, we may qualify for some aid (even if it was never meant for people like us, but the government seems to only have a income test and not a means test for determining who will get health care aid).

 

[DeborahB]

after doing lots of web surfing and calling, it looks like we have settled on Cobra.

It is roughly equivalent in price to the individual policies but with much better coverage/deductibles etc.

I am so jealous of you guys in other states. Our Mass. health plans are very expensive.

We will stay on Cobra for the 18 months at which point we hope the rules governing the national health plan will be more clear.

With us being retired and having almost no income, we may qualify for some aid (even if it was never meant for people like us, but the government seems to only have a income test and not a means test for determining who will get health care aid).

If it makes you feel any better, COBRA for me alone will be $435 or so per month. It does include vision coverage & prescription coverage. I have pre-existing conditions so I am not going to bother to try for other insurance until this is 3 months from running out - I will have 17 months to pay for after COBRA, before Medicare starts. I will be 62 in a couple of weeks and will retire July 2 (which should get me July coverage at employee rates).

I'm not in MA. I hope the rules DO become clearer - but they may not go into effect before I turn 65. I heard 2014 a lot - I'll be 65 in 2013...

But I'm retiring!!!!!!!! Whoo hoo!

We self-insure - that may make the COBRA rate not so bad... but it isn't inexpensive.

 

[wantingToGetOut]

If it makes you feel any better, COBRA for me alone will be $435 or so per month. It does include vision coverage & prescription coverage. I have pre-existing conditions so I am not going to bother to try for other insurance until this is 3 months from running out - I will have 17 months to pay for after COBRA, before Medicare starts. I will be 62 in a couple of weeks and will retire July 2 (which should get me July coverage at employee rates).

I'm not in MA. I hope the rules DO become clearer - but they may not go into effect before I turn 65. I heard 2014 a lot - I'll be 65 in 2013...

But I'm retiring!!!!!!!! Whoo hoo!

We self-insure - that may make the COBRA rate not so bad... but it isn't inexpensive.

Our Cobra is looking to be around $1100 a month but that is for me, wifey and daughter.

I keep hearing 2014 as well, but hopefully something can become more clear before then for the national health care. Even 2014 would be fine, as long as its well defined.

I wonder if the government will plug the obvious hole in terms of testing income AND means? While I am certain I will take advantage of any financial help the government gives, I can't help but think its wrong some how...