Health Ins Costs Retired at 56

[Dogman]

Justs thought I would let people know how expensive Health Ins is prior to 65. My wife 57 and I 56 just had a renewal from Mega Health and Life with a $2,000.00 increase to $12,300.00. Reviewed other plans in AZ and were able to find a 3000/70 Cigna plan but because my wife has Ostio. they rated her $150.00 more each month for a total of $850.00 per months for both of us or $10,200.00.

At this rate by the time I hit 65 the insurance will cost me over $20,000.00, which dips in to my retirement greatly.

Combine the stockmarket, no interests and health insurance my retirement is going up in smoke.

Any suggestions?

 

[MasterBlaster]

From my point of view, you are getting medical on the cheap. My medical for the wife and I would cost around $18k/year on the open market.


If you want someone to blame, just look in the mirror. We all (collectively) get better medicine(s) and more treatments than we used to. The courts have ruled that the medical plans can't exclude much.

Someone has to pay for all that service.

If we went back to 1950's style medical then everyone could afford it.

 

[Mulligan]

Justs thought I would let people know how expensive Health Ins is prior to 65. My wife 57 and I 56 just had a renewal from Mega Health and Life with a $2,000.00 increase to $12,300.00. Reviewed other plans in AZ and were able to find a 3000/70 Cigna plan but because my wife has Ostio. they rated her $150.00 more each month for a total of $850.00 per months for both of us or $10,200.00.

At this rate by the time I hit 65 the insurance will cost me over $20,000.00, which dips in to my retirement greatly.

Combine the stockmarket, no interests and health insurance my retirement is going up in smoke.

Any suggestions?

You didn't mention how medical care and prescriptions you consume each year. Have checked into higher deductible HSA plans? I am 47 and live in a different state, but my $5500 deductible is only $71 a month. Factor in the tax benefit of funding the HSA , and for now anyway, I'm essentially getting my premium for free. HSAs have other advantages too provided they suite your needs.

 

[dgoldenz]

Mega Life & Health sells overpriced garbage. They are NOT a health insurance company, so it's a good thing you dumped them. Get the help of an independent broker ASAP. Using a broker costs you $0.

 

[chinaco]

Health Insurance Premiums rose sharply for employers in 2011.

Health Insurance Premiums Rise Sharply in 2011 - ABC News

They cited numerous reasons from the health reform provision to insure kids till 25 years of age to increases health services costs.

 

[skyvue]

Justs thought I would let people know how expensive Health Ins is prior to 65. My wife 57 and I 56 just had a renewal from Mega Health and Life with a $2,000.00 increase to $12,300.00. Reviewed other plans in AZ and were able to find a 3000/70 Cigna plan but because my wife has Ostio. they rated her $150.00 more each month for a total of $850.00 per months for both of us or $10,200.00.

At this rate by the time I hit 65 the insurance will cost me over $20,000.00, which dips in to my retirement greatly.

Combine the stockmarket, no interests and health insurance my retirement is going up in smoke.

Any suggestions?

Central or South America? I have read that you can have "cadillac" health plans in countries such as Cost Rica, Equador, etc.. for about $150 per month.

My plan is to retire around 52-53 (was hoping for 50 until the market tanked). I am likely headed down there for a few years until eligible for Medicare.

Internation Living Magazine is a good source for moving abroad and learning about property values, medical costs, etc...

 

[Buckeye]

I am 52 and DH is 62. Our Humana plan ($11,000/100%) is $339 per month with no pre-existing conditions. We are not high consumers of healthcare so this type of plan (true insurance i.e. coverage for the big stuff) makes sense for us.

We have 7 more months before our renewal comes up. It's going to be interesting to see what kind of increase they throw at us.

 

[toofrugalformycat]

Mega Life & Health sells overpriced garbage. They are NOT a health insurance company, so it's a good thing you dumped them. Get the help of an independent broker ASAP. Using a broker costs you $0.

+1
I had a similar situation, and an independent broker helped me out for no cost. If you're lucky, your state might have a plan for uninsurables, with a very high deductible, that will get your costs down. The broker should know all your options.

 

[Buckeye]

One of my motivations to lose some weight is to be ready to go insurance shopping if required as our anniversary date approaches (April).

 

[thooda]

+1 for HSA option. I'm fairly young and in good health with no known medical issues (knock on wood). Since healthcare cost is skyrocketing I choose to go with a HSA health plan with $5000 dedu. I've had HSA since 2007 and have been contributing up to annual limit every year into a HSA account. Now, I have nice little stash I intend to let it grow for future.

 

[BeeBee]

I would love to hear more about HSA plans and high deductible insurance. My husband and I are 49 and 51 with no known health issues... yet... nothing serious anyway, little arthritis maybe that we just put up with, lol. We've never been the type to go to the doctors much in fact it's just been lately that I've been thinking about preventive care stuff like screenings, etc. Right now we pay Aetna 330.00 for both of us, it includes screenings but neither of us has been to the doctor in years. Too busy working! In December we are moving from Ohio to FL for our early retirement so I was thinking I need to change plans anyway since our Aetna plan is in Ohio.
Would a HSA/high deductible make sense for us? Any advice would be most appreciated!

 

[zinger1457]

Would a HSA/high deductible make sense for us? Any advice would be most appreciated!

It's definitely the way to go if you haven't been to the doctors in years and your health is good. Some of the money that you now pay to your insurance company could go into your own HSA savings account. Aetna offers some decent HSA plans, I've used them for several years now. Most HSA plans include yearly preventive care (physicals, blood work, flu shots) at no charge.

 

[REWahoo]

I agree the HSA/high deductible route is a good one under current health insurance laws. DW and I have had HSA policies since going off Cobra a few years ago.

The Health Care Reform Act makes a number of specific changes to HSA's and contains a number of yet-to-be-defined additional potential changes. Some believe the changes will be significant and may drastically reduce the benefits of HSA's.

Due to the highly political nature of this subject I won't go into further details or provide links, but a web search will turn up all sorts of information. Good luck in sorting the wheat from the chaff as there appears to be a lot of fer mongering going on...

 

[Buckeye]

DH (62) and I (52) have this plan: HUMANAONE FL OPEN ACCESS HDHP PHP-R. Humana seems to be growing dramatically in the Tampa Bay area. Maybe in all of Florida.

Our deductible is $11,900 before 100% coverage kicks in. Preventative visits are covered. Of course, the $11,900 is an annual deductible. DH and I are also eligible for care at the VA so that is somewhat our safety net for an ongoing health issue.

As dgoldenz recommends (and I wholeheartedly agree), the only way to purchase individual health insurance is using a broker. They get paid by the insurance companies so it costs you nothing. They know the "personalities" of all the plans.

In preparation for your search, ensure your body weights are as close to "normal" as possible and do not take ANY prescription medications for the previous year unless absolutely necessary. It seems the insurance companies will use it for an excuse for an upcharge no matter how benign the substance you were prescribed. Expect a price increase for insurance in FL and start your search about 2-3 months before you need to start the policy.

My broker encouraged us to shop for a policy every year as long as we had no health conditions. It may put money in his pocket but it may also put some in ours. Just like with homeowners and auto insurance, it appears to pay to be out there checking the market every year.

Feel free to PM me if you have other specific questions.

 

[thooda]

Since you are healthy and not using much health care services it's worth looking into HSA option. Full benefits of HSA can be realized only if you can afford HSA compatible HDHP and max out up to the annual limit set by IRS.

Here's the summary of contribution and limits and qualification
HSA Contribution Limits


2011 2012 Change Individual Coverage $3,050 $3,100 +$50 Family Coverage $6,150 $6,250 +$100 You can only contribute to an HSA if you have a High Deductible Health Plan (HDHP).
HDHP Qualification

The IRS also defines what qualifies as an HDHP. For 2012, an HDHP with individual coverage must have at least $1,200 in annual deductible and no more than $6,050 in annual out-of-pocket expenses. For family coverage, the numbers are minimum $2,400 in annual deductible and $12,100 in annual out-of-pocket expenses.

2011 2012 Change Individual Coverage


min. deductible $1,200 $1,200 None max. out-of-pocket $5,950 $6,050 +$100 Family Coverage


min. deductible $2,400 $2,400 None max. out-of-pocket $11,900 $12,100 +$200

You can find detailed information about HSA eligibility, contribution limits etc using below links.

Health Savings Accounts (HSAs)

Publication 969 (2010), Health Savings Accounts and Other Tax-Favored Health Plans

You can check out ehealthinsurance.com to see what HSA compatible health plans are available wherever you plan to settle and how much it'll cost.

IMHO I view HSA like IRA. Contributions up to allowed annual limit are fed tax dedu; contributions carry over year over year; contributions and earnings can be used tax free for qualified medical expenses. See IRS website for qualified medical expense definition.

During my 2nd year with HSA plan I had an unfortunate visit to ER. I had a $3500 dedu HSA plan. Initial bill was close to $5K. After going thru the claims process final bill was close to $1K. Since I had $3500 dedu, I had to pay all. Even though I had the money in my HSA account I didn't want to touch it. Instead I talked to the hospital and got a payment plan to pay over 6 to 9 months. It worked out great. Now that $1K I didn't touch is also growing.

I have 20 to 25 years before I can retire. So, I can afford to take risk and I have of my HSA $$$ is mutual funds. End Q2 this year I had close to $17K in my HSA. But, with recent market drop it's now down to $13K.

Since HSA didn't get axed during the Health Reform I think it'll gain popularity over next few years. Can't wait for it happen and see big investment managment companies jump into HSA market. This will give individuals like me better investing opportunities.

So, I highly recommend HSA to anyone who's healthy(using nothing to minimal health care services), can afford HDHP and max out up to annual limit every year.

****Disclaimer**** I'm not a health care or insurance professional. Also, I'm not an expert in HSA rules, product and services.