Health Ins going away, need help

[DawgMan]

I'm self employed and make too much $$ for any subsidies/discounts on my health ins. At this point, I am insuring myself, DW, and 2 of my 4 kids that are left in the nest (ages 19 & 20). We are healthy peeps and I have always been a high deductible/lower premium guy. Currently, until end of yr, I am on a BCBS PPO with high deductible ($7500/person) and few co-pays yr. this plan is going away and I need to pick another one. Before I spend hours digging thru the latest plans (all appear a min of 30% higher in premiums at first glance), any suggestions?

[Dash man]

Welcome to our world. We'll probably be on Cobra from DW's employer for 2016, but we're going to do some shopping too. Can't wait to see what the 2016 prices will bring on Nov 1. It won't be pretty once our Cobra runs out.


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[Senator]

That is the new reality. Plan on it being worse, there are many more people getting healthcare than are paying for it. And the ratios are changing in an exponential manner - which is great boon for early FIRE.

Without knowing how much income you have, or your wife, it is difficult to determine what is the best course of action.

In my case, I have VA insurance and will buy a high deductible bronze policy. My deducible through my bronze policy can be met just by going to the VA, even though I do not have to pay anything. I am looking at the bronze policy like a catastrophic plan.

Once we FIRE in 2016, my DGF of 25+ years will be getting a policy paid by the State of MN that will cost ~$20 a month. It will include medical, dental, vision, pharmacy, and even free transportation to the clinics with a $0 deductible.

If you were not married, and if your wife was a low-income person, she could get a very cheap policy that would combine the kids on it. While it may not be feasible to get un-married, if you can save $15K+ a year, it may be something to consider.

If you have a corporation, you should be able to deduct the healthcare premiums so at least it is tax-free. If you do not have a corporation, and only get a 1099, you are likely missing so many tax deductions that the cost of healthcare is a small amount.

[EastWest Gal]

No doubt we'll be paying much more next year. We use the national exchange and just heard our plan will be going away. I may contact the ins company directly this year.


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[DawgMan]

Unfortunately, I am it as it relates to the income producer so no other sources for health ins. My income will be way over the limits, so no discounts apply. I will be able to deduct the premiums as I have before and perhaps set up an HSA, but would still like to determine the best way to go while still working. It sounds like there are no special strategies here other go online and shop. Thx for the feedback.

[bingybear]

Quote:

Originally Posted by DawgMan Unfortunately, I am it as it relates to the income producer so no other sources for health ins. My income will be way over the limits, so no discounts apply. I will be able to deduct the premiums as I have before and perhaps set up an HSA, but would still like to determine the best way to go while still working. It sounds like there are no special strategies here other go online and shop. Thx for the feedback.

Check if you can join a group policy offered by a professional organization of the like. Shop insurance companies directly. Check for other groups that you could join to get group care.
Health care insurance is one of several wildcards. As my GP put it, they still have not made health care affordable. Be happy you can afford it... even if you don't like the price.
From what I've read, health insurance companies are jacking up the rates of the high deductible plans. Likely to encourage people to move to plans with better coverage and more profit.
hopefully one day we will get health care right... but I'm not betting for this in my lifetime.

[pb4uski]

+1 in checking into organizations that you might be able to join and get group coverage. Pre ACA, I was able to join our local Chamber of Commerce and they had a group program that we could get in on that was quite a bit cheaper than what i could get on the individual market at that time. Ask friends and other self-employed people in your area what they do.

If the cheapest bronze plan available to you exceeds 8% of your Obamacare MAGI you can buy catastrophic coverage even though you are over 30. This is what we do. In our area the coverage is only slightly worse than a bronze plan and the cost is ~35% lower but in some areas the cost isn't all that different. Also, we get individual policies (one for me, one for DW) since two single premiums is the same as a couple but the deductibles work better (if we have health issues the insurance kicks in earlier because the deductible is stacked and not aggregate).

[pb4uski]

Quote:

Originally Posted by bingybear ....From what I've read, health insurance companies are jacking up the rates of the high deductible plans. Likely to encourage people to move to plans with better coverage and more profit. ....

That makes no sense given the changes that effectively limit the insurer's profit and force them to refund premium if their medical loss ratio is below 80%.

[Animorph]

An HSA eligible plan should be close to what you have now, with the benefit of the HSA account that you can put retirement savings into and not spend. The BCBS PPO is going away for us as well. They are offering only two HMO's, which look very much like the PPO but with a smaller network at about the same cost. Neither one has my current PCP. I'll be looking at all my options in November.