Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
When you ER, how do you plan to get medical coverage?
Old 01-23-2016, 10:29 AM   #1
Dryer sheet aficionado
 
Join Date: Jul 2014
Location: West Wendover
Posts: 49
When you ER, how do you plan to get medical coverage?

I plan to ER at age 50, in about 12 years. At that time, I'll have a pension that pays about $60k per year. The pension does NOT include any medical benefit. I won't be able to claim Medicare until 65, so I'm wondering what people do is these situations. I'm saving in retirement accounts and will have "extra" money beyond my pension, but the pension income should cover our basic needs. What are some of you planning to do regarding that time between ER and Medicare?


I better not die right after retiring! I've saved for years to be able to enjoy the money and time. (This is one of my fears)
__________________

__________________
Brianeboatman is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-23-2016, 12:17 PM   #2
Recycles dryer sheets
 
Join Date: Jul 2013
Posts: 342
I would not worry about it excessively at this point in time. ACA, in some form, will survive. To me, it is a big deal that folks will be able to buy health insurance, regardless of pre-existing conditions. We are still in the first years of implementation, and there is a lot of political yammering back and forth. I expect this to settle down such that expenses will be more predictable by the time you get closer to retiring.

Hopefully in 10 years it will look more like a predictable expense, and you can plan for it in the same manner that you plan for other fixed expenses.
__________________

__________________
Clone is offline   Reply With Quote
Old 01-23-2016, 12:27 PM   #3
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Eagan, MN
Posts: 3,042
I retire at 56. I will use my VA benefits as much as I can, and buy a bronze policy.

I will not have any ACA subsidy as my income will be too high and my VA healthcare rules it out.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is online now   Reply With Quote
Old 01-24-2016, 06:41 PM   #4
Dryer sheet aficionado
 
Join Date: Jul 2014
Location: West Wendover
Posts: 49
I won't have VA benefits. I understand just holding tight to see what happens with the ACA, but what are people who ER now doing for health coverage? Are folks just spending a ton on private health insurance policies?


I better not die right after retiring! I've saved for years to be able to enjoy the money and time. (This is one of my fears)
__________________
Brianeboatman is offline   Reply With Quote
Old 01-24-2016, 07:41 PM   #5
Full time employment: Posting here.
Aerides's Avatar
 
Join Date: Nov 2015
Posts: 694
ACA is my plan.

Also, I've been maxing out my HSA account at work each year since I have one that rolls over and goes with me, pre-tax savings. It's a nice little egg that will help cover the transition expenses.
__________________
Aerides is offline   Reply With Quote
Old 01-24-2016, 07:45 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 5,161
You can go to the health care marketplace or ehealthinsurance.com to see for yourself what health insurance might run. I retired before ACA but got a pretty reasonable private policy. Now I can get the same deal private or via ACA. No subsidy so it doesn't matter. I think for some reason the insurance agent I went through suggested private, but I can't recall why. An agent can help find you the best deal, at no extra cost to you.
__________________
RunningBum is offline   Reply With Quote
Old 01-24-2016, 08:23 PM   #7
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 8,796
Health insurance was one of the puzzle pieces that was hard to figure out when I first started planning. In early stages of planning I looked at the COBRA costs from my employer - figured that was paying full freight - and used that for spending projections. This was pre-ACA with it's premium tax credits for folks below the 400% of Poverty line. I did, however, worry that pre-existing conditions would prevent me from getting any insurance at all after COBRA ran out. Thankfully the ACA took care of that.
__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 7%, rental income 18%
rodi is offline   Reply With Quote
Old 01-24-2016, 11:06 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Nov 2009
Posts: 3,855
I ERed in late 2008, before the ACA went into effect. From 2009-2013, I had 2 different individual plans. The first was a comprehensive plan but whose rates rose 50% in 2 years so I had to drop it and switch to a bare-bones plan which left me rather underinsured. But that was in the middle of 2011 so all I had to was hang in there until the start of 2014 when I could buy myself a broad plan at an affordable price under the ACA exchange. This proved crucial because I had some health issues in 2015 but was adequately although not superbly covered (I hit my max OOP of just over $6,000).


My income is just below the cutoff to get a premium subsidy although that subsidy is not very high, not more than $500 per year. It helps, though.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is online now   Reply With Quote
Old 01-24-2016, 11:59 PM   #9
Dryer sheet aficionado
 
Join Date: Jul 2014
Location: West Wendover
Posts: 49
Scrabbler, what's the income cutoff?


I better not die right after retiring! I've saved for years to be able to enjoy the money and time. (This is one of my fears)
__________________
Brianeboatman is offline   Reply With Quote
Old 01-25-2016, 06:22 AM   #10
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,407
Quote:
Originally Posted by Brianeboatman View Post
I won't have VA benefits. I understand just holding tight to see what happens with the ACA, but what are people who ER now doing for health coverage? Are folks just spending a ton on private health insurance policies?
Yes, most folks who ERd now get private individual health insurance. It is expensive, because health care in the U.S. is expensive. Right now you can get part of the premium subsidized if your family income is less than 400% of the federal poverty level. I tell my children that they should plan on paying the full price. If there is a subsidy and they qualify, good for them, but they should not plan on that 10-15 years down the road.
__________________
MichaelB is online now   Reply With Quote
Old 01-25-2016, 06:30 AM   #11
Thinks s/he gets paid by the post
 
Join Date: Nov 2009
Posts: 3,855
Quote:
Originally Posted by Brianeboatman View Post
Scrabbler, what's the income cutoff?


I better not die right after retiring! I've saved for years to be able to enjoy the money and time. (This is one of my fears)
For me, single with no kids, the income cutoff for 2015 is $46,680 which is 400% of FPL for someone who lives in one of the 48 contiguous states (i.e. not Alaska or Hawaii).
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is online now   Reply With Quote
Old 01-25-2016, 08:48 AM   #12
Dryer sheet aficionado
 
Join Date: Jul 2014
Location: West Wendover
Posts: 49
Do they base the ACA premiums on what you spend each year or is it calculated on your net worth, or both?


I better not die right after retiring! I've saved for years to be able to enjoy the money and time. (This is one of my fears)
__________________
Brianeboatman is offline   Reply With Quote
Old 01-25-2016, 09:00 AM   #13
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,407
Quote:
Originally Posted by Brianeboatman View Post
Do they base the ACA premiums on what you spend each year or is it calculated on your net worth, or both?
Health insurance is offered by private insurers. The policy options and prices depend on your location. This website can tell you what is available in your zip code https://www.healthsherpa.com/
__________________
MichaelB is online now   Reply With Quote
Old 01-25-2016, 09:00 AM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Apr 2013
Posts: 5,560
I retired at 56. First year COBRA then two years of ACA. Without the provisions the law brings I couldn't buy insurance due to pre-existing conditions.

ACA works based on income no means testing of assets. Assuming it's still that way it's good to have a pile of post tax dollars to live from between retirement and Medicare.
__________________
MRG is online now   Reply With Quote
Old 01-25-2016, 09:16 AM   #15
Full time employment: Posting here.
 
Join Date: Jan 2014
Posts: 661
At age 48, I receive APTC for an exchange plan but not CSR. I have a healthy 60 yr old cousin who is using 6 month short-term plans as a bridge to Medicare. The ST plan is not ACA compliant so he has to pay the penalty. His penalty and premium combined is within $30 per month of my subsidized premium.
__________________
MBSC is offline   Reply With Quote
Old 01-25-2016, 01:25 PM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 5,161
OP, you really need to start at https://www.healthcare.gov/ and pull down the Get Answers Tab and select the First Time links. This will give you a basic background on what ACA is and what your options are. Educate yourself and then come back and ask questions where you still have them. The questions you are asking seem to indicate that you do not have a good understanding of what it is, and I don't think asking scattershot questions is the best way to get you up to speed. There is the insurance itself, and there is the subsidy, and it's not clear which you are asking about or if you even get that there is a difference. People are giving conflicting answers because some are talking about the insurance and some the subsidy.


If anyone has a better place to start, chime in.
__________________
RunningBum is offline   Reply With Quote
Old 01-25-2016, 01:37 PM   #17
Recycles dryer sheets
 
Join Date: Jun 2014
Posts: 481
I agree with RunningBum, that's the best place to start and every state is different...your medical history will impact which plans you want to choose and your own tax situation. We buy on and off the exchange depending on taxes situation and expected income levels in any given year.
__________________
karen1972 is offline   Reply With Quote
Old 01-25-2016, 03:15 PM   #18
Recycles dryer sheets
Willers's Avatar
 
Join Date: May 2013
Posts: 480
You can also check out the Kaiser Foundation site for information:

Health Reform | The Henry J. Kaiser Family Foundation

There is a nice subsidy/cost calculator on the site:

Health Insurance Marketplace Calculator | The Henry J. Kaiser Family Foundation

The calculator allows you to see the effects of different income levels in specific states.
__________________
“If you don't do it this year, you will be one year older when you do.” - Warren Miller
Willers is offline   Reply With Quote
Old 01-25-2016, 07:08 PM   #19
Recycles dryer sheets
outdoorgirl02's Avatar
 
Join Date: Jul 2014
Posts: 243
DH and I have been buying our own insurance for the past 3 years. Ehealthinsurance.com is a great starting point to get quick pricing and plan options. We get the cheapest bronze plan for DD and DH (they are super healthy). I have a gold plan for myself due to some chronic health issues.
__________________
outdoorgirl02 is offline   Reply With Quote
Old 01-26-2016, 02:21 AM   #20
Dryer sheet aficionado
 
Join Date: Jul 2014
Location: West Wendover
Posts: 49
Thank you. I will be doing some homework.


I better not die right after retiring! I've saved for years to be able to enjoy the money and time. (This is one of my fears)
__________________

__________________
Brianeboatman is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
International Medical Coverage LIWIKI Travel Information 9 12-08-2012 11:29 PM
Retired Vet Medical Coverage Question Semiretired2008 Hi, I am... 19 06-26-2012 02:24 PM
VA Medical Care & Emergency Coverage Buckeye Health and Early Retirement 45 04-21-2011 02:04 PM
back to work medical coverage questions stargazer08 Health and Early Retirement 0 04-16-2009 06:32 PM
Does your medical coverage follow you when you travel? azauthor Life after FIRE 8 03-19-2008 03:35 PM

 

 
All times are GMT -6. The time now is 09:49 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.