Medical Insurance

[runnerr]

I have a question. Recently I took a part time job with the government and am eligible for their medical but as a part-timer the cost is almost three times that of full time. At present I waived my retiree is medical from the company I retired from (23years) until I am 65 when I have to get back on. At the present, I am wives. Here how it sizes up. If I get the government insurance for $ 720 a month, dental and vision included after 5 years I can carry it into retirement. Here’s the breakdown as best I can guess.

$720 for the government a month.
$240 for what we are on now.
About $360 or so present value for government retires wife and I if I make it 5 years.
$700 or so present value for my company’s medical at 65.

If I did take the high price of the government now and made it 5 years, it would be beneficial in the end but if I left, I would be out a bunch of money. I cannot believe you only have to have 5 years with the government to qualify for full medical at retirement. At my company, it was pro rated. What I am thinking is to stay on the wife’s and invest the difference in an IRA to offset the cost when I have to get back on my companies retiree’s medical at 65. Reason is 5 years is a long time and I don’t want the pressure having to stay. Any thoughts.

[youbet]

Originally Posted by runnerr

Reason is 5 years is a long time and I don’t want the pressure having to stay. Any thoughts.

One of the biggest causes of dissatisfaction with life expressed on this board is being tied to a job with "golden handcuffs."

[runnerr]

Thanks YouBet, my thoughts exactly. When I took the job, it was a good feeling knowing that if it did not work out I could just walk away. To give that up to save some money in the future really is not worth it.

[Oldbabe]

Three questions to consider:

1. What makes you think that government department will keep its word about lifetime medical?

2. What is your health now and do you have any conditions that might cause you to stop working before five years with the government?

3. Is your wife likely to continue with her job and keep her benefits for the next five years?

[runnerr]

OldBabe
My health is good and I don’t know of any condition that would cause me to have to leave.
As for the government, keeping their word that is anyone’s guess.

My wife is a nurse (NP) and she should have a job she is also younger than I by 11 years, I am 58 and she is 47. I can always get back on my old employers medical at any time. It is much cheaper to be on hers.

Thanks