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Old 06-12-2014, 06:30 PM   #21
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$9,288/yr in premiums for 4 people sounds good to me. DH and I pay over $12K/yr for the 2 of us, with no employer subsidy. We are retired, pre-Medicare age, and not eligible for Obamacare.
I will be RE in a few months, and have been looking at insurance options. Currently, it appears that the best for us at the moment is a Megacorp plan for pre-65 retirees. This doesn't offer any subsidy, but there is some benefit from being in such a large group plan with the working employees. It will be about $10,500 for the two of us.
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Old 06-12-2014, 06:46 PM   #22
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The final dollar figure sounds reasonable, it is the claim of the 80% subsidy that might be where the mischief exists.

-gauss
+1 I'm thinking the same thing - no way it is 80% subsidized given the pricing of unsubsidized HDHI policies. I wonder if perhaps active employees are 80% subsidized - the $93 a month would seem to fit with that.
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Old 06-12-2014, 07:09 PM   #23
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+1 I'm thinking the same thing - no way it is 80% subsidized given the pricing of unsubsidized HDHI policies. I wonder if perhaps active employees are 80% subsidized - the $93 a month would seem to fit with that.
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Old 06-12-2014, 08:40 PM   #24
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Check healthcare.gov for your official alternatives. You may qualify for a subsidy if you are living off already-taxed investments and keeping your income low.
I am usually surprised in health insurance threads in this forum there are not more posters using this methodology during the pre-Medicare years.
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Old 06-12-2014, 10:22 PM   #25
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Though my Megacorp pension will be not particularly generous when I start to collect at 55 (roughly 20% of my final year's pay after 26 years with the company) they do have a decent retiree medical plan. They subsidize 3.3% for every year of service, so while I won't get the full ride I will get about a 90% subsidy - meaning premiums of $80-95/month for me (or double that if DW quits her job and gets onto my plan).

I believe this subsidy ends when Medicare takes over, but I'll drive off that bridge when I come to it.
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Old 06-12-2014, 10:26 PM   #26
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Check healthcare.gov for your official alternatives. You may qualify for a subsidy if you are living off already-taxed investments and keeping your income low.
Healthsherpa is another good source as a first place to start.
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Old 06-12-2014, 11:46 PM   #27
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Our is about $600 a month for retiree medical. Our employer subsidy is capped so all inflation is passed along to us. I budget about $1,000 a month all in.

Don't forget to budget for things that are not covered by health insurance (e.g. dental and eye exams/glasses). This stuff can add up.
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Old 06-13-2014, 04:59 AM   #28
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Though my Megacorp pension will be not particularly generous when I start to collect at 55 (roughly 20% of my final year's pay after 26 years with the company) they do have a decent retiree medical plan. They subsidize 3.3% for every year of service, so while I won't get the full ride I will get about a 90% subsidy - meaning premiums of $80-95/month for me (or double that if DW quits her job and gets onto my plan).

I believe this subsidy ends when Medicare takes over, but I'll drive off that bridge when I come to it.
Sounds like a nice setup. Hopefully the policy will remain unchanged until you reach Medicare age.

As you likely know, unlike pensions, health care benefits are considered "unprotected" by ERISA and thus companies can change the terms at any time for any reason -- even benefits that appear to accrue yearly.

-gauss
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Old 06-13-2014, 06:09 AM   #29
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My COBRA will be about $1500/month for two of us and my college student DS. I think my company is probably lying about the premium, since I have a HDHP and HSA. I'm looking into ACA insurance now-I'll save a minimum of $500/month. DS graduates and hopefully will become one of those dispicable public employees (sarcasm) ie a school teacher, with a health plan. I have a friend who ER'd this year from public school teaching and she also needs to buy her own health insurance.

I work in healthcare and I can't even tell you what my organization bills for my work! It's nuts.
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Old 06-13-2014, 07:32 AM   #30
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My cobra rate will be $940 for the two of us. A silver plan with similar benefits through the ACA will cost us approx $600 after subsidies. I don't have to make a decision for a few months as I'm covered through March 2015.
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Old 06-13-2014, 07:33 AM   #31
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Must respectfully disagree. Reality is high HI premiums are due to high overall HC costs. Insurers are sometimes a PITA, but they are generally among the lowest profit margin businesses in the US with typical margins from 2-5%.
Health insurer profits not as fat as Dems claim - politics - Health care reform | NBC News
Health Insurance Profits: Not Worth the Outrage? - ABC News
Compare that with typical profit margins of 15-20+% for Big Pharma and 12+% for medical device makers.
Ezra Klein - Health-insurance industry: Still not that profitable
And as we all know, the huge $$$$ we in US spend on drugs, devices, etc. buys us no better outcomes than other developed countries.
With Health Care Costs, the U.S. Is a Huge Outlier | Brookings Institution

Ever rising costs are a problem worldwide, and interestingly US is not among global leaders in HC inflation. Seems other nations are starting to close the HC spending gap.
Middle East, Africa lead rising global health care costs for 2014: Survey | Business Insurance
And I must respectfully disagree with your disagreement.

I will make this brief in the hope that I don't bring out the bacon nor derail the thread.

Focusing on health insurer profits completely misses the point when discussing health care cost. It's like saying your car doesn't go fast enough because it has a bad paint job. See the attached article, Table 3-1 in particular. That's where the "pony" is; all the rest is...well you know.

http://economix.blogs.nytimes.com/20...n-health-care/
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Old 06-13-2014, 09:19 AM   #32
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How the US manages to spend double or more of what most other countries spend, and with worse outcomes on average, is a very sad achievement.

One example of worse outcomes: infant mortality is at 5.4 out of 1.000 in the US. Japan is at 2.6, Germany at 3.7
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Old 06-13-2014, 09:24 AM   #33
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I paid about that amount for both medical and dental for me, DW and kids at a 64% subsidy, although our plan had no deductible, just co-pays.
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Old 06-13-2014, 09:39 AM   #34
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And I must respectfully disagree with your disagreement....
Huston, I'm not sure what your point is. I think ERHoosier is correct in that health insurer profits are not a significant contributing cause to the escalation of health insurance premiums, particularly since medical claims cost ratio limits were put in place a couple years ago. Health care costs, which ultimately become health insurance claims are the major cause for the reasons described in the article and summarized in Table 3-1.
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Old 06-13-2014, 11:23 AM   #35
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+1 I'm thinking the same thing - no way it is 80% subsidized given the pricing of unsubsidized HDHI policies. I wonder if perhaps active employees are 80% subsidized - the $93 a month would seem to fit with that.
Yes, the $774/month is at 80% subsidy. I was trying to paste a snapshot of it into this message but I can't. But here is the verbatim of what it says:

75-79 points (80% subsidy)
You, Souse & Child(ren)
Monthly Retiree Cost
$774.00
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Old 06-13-2014, 11:27 AM   #36
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Thanks everyone for the replies. I guess I don't feel so bad. But it's still a big hit to take in retirement having to shell out an incremental $8,000 a year in premiums. I guess that would be equivalent to maybe $200k more in savings I'd need.
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Old 06-13-2014, 11:40 AM   #37
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Premiums will likely go up each year. Out-of-pocket costs will need to be accounted for along with the monthly premiums. To me, health care costs make early retirment very scary.
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Old 06-13-2014, 12:07 PM   #38
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Yes, the $774/month is at 80% subsidy. I was trying to paste a snapshot of it into this message but I can't. But here is the verbatim of what it says:

75-79 points (80% subsidy)
You, Souse & Child(ren)
Monthly Retiree Cost
$774.00
bulbar, the reason I am skeptical that the $774 is 80% subsidized is because that would mean the unsubsidized premium for a family would be $3,870 a month ($774/(1-80%) and that is way above any family premium available in the marketplace for HDHI coverage that I have ever heard of. As points of reference, my 2012 COBRA which was unsubsidized HDHI would have been $900 a month for a couple and my current HDHI policy is $683. While those are for a couple, family coverage would be a little more but not over 5 times more.

In any event, $774 for family HDHI coverage is pretty good. What would a comparable HDHI policy be according to healthsherpa?
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Old 06-13-2014, 12:11 PM   #39
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Thanks everyone for the replies. I guess I don't feel so bad. But it's still a big hit to take in retirement having to shell out an incremental $8,000 a year in premiums. I guess that would be equivalent to maybe $200k more in savings I'd need.
You're right that it is a significant cost but $200k sounds a bit high because it would be for 10 years at most (you'll go on Medicare at 65) and might decline once the kids are off the policy.
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Old 06-13-2014, 12:14 PM   #40
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Premiums will likely go up each year. Out-of-pocket costs will need to be accounted for along with the monthly premiums. To me, health care costs make early retirment very scary.
They are scary in a normal retirement setting too.
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