Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Health Ins Question
Old 10-30-2008, 08:11 PM   #1
Confused about dryer sheets
Join Date: Apr 2008
Posts: 4
Health Ins Question

Will retire at age 56 from career job of 31 years on Jan 1. The only real retirement benefit will be health insurance and it's kind of expensive, but with wifes previous health issues, cannot afford "not" to take it. One reason I'm retiring is that I've been offered another job. New job offers free health insurance for employee (me), and dependents are extra $ per month.

So, I'll have two health insurance policies on me, and one on wife. How do I handle having two health policies? Can I make claims on both? I'm not trying to "make" money on them, but it would be nice to have zero health costs for me (except for premium)
any ideas or thoughts?


DavidG 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 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 10-30-2008, 08:37 PM   #2
Recycles dryer sheets
Join Date: Feb 2008
Posts: 64
I'd be very careful here.

I'd bet that it is against the contractual terms (or law?) to join your new health plan while keeping coverage on your old plan. If so, joining the new plan could irrevocably cancel your eligibility under the old plan. If that happened, and you then left your new employer, you could find yourself without medical insurance after any COBRA period expires (at least until Medicare kicks in at age 65).

If it were me, I'd get this cleared up before retiring!

- plsprius

plsprius is offline   Reply With Quote
Old 10-30-2008, 08:40 PM   #3
Moderator Emeritus
Rich_by_the_Bay's Avatar
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
DavidG, welcome to the board and congrats on approaching FIRE.

As I understand it, you can't make claims on both since the carriers have "coordination of benefits" meaning they won't double pay for the same service. However, if a service is covered by one carrier but not by another, you can bill the covering carrier for that service only.

I'm reading your post to say that retirement health insurance is available only for you through your soon-to-be former employer (although you pay). And you need to hold on to the old policy to assure that your wife is covered. Did I get it right?

It's very uncommon for an employer not to offer family coverage, though you may have to pay the difference in premiums yourself. In fact, I thought that some states require that dependent insurance be offered, at least for large groups. I assume you discussed this with the benefits people.

Tough to have to double-pay for this but you are wise to maintain her coverage and when you finally do retire, you have the benefit of knowing that you have access to coverage. Maybe by then, there will be some legislative relief.
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Old 10-31-2008, 06:56 AM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
Join Date: Feb 2006
Posts: 8,106
I think it is common for people to have coverage under two policies. BCBS is always inquiring whether you have an additional policy - I suspect they all try to be "secondary" insurers. I wonder what happens if you have two policies that say under their terms that they will pick up what the other won't. How do the courts decide who is responsible as primary?
Every man is, or hopes to be, an Idler. -- Samuel Johnson
donheff is offline   Reply With Quote
Old 10-31-2008, 11:13 AM   #5
Recycles dryer sheets
SteveL's Avatar
Join Date: Aug 2005
Posts: 380
Having health insurance from two providers is a waste. If your old employer is offering you coverage as a retiree, you should consider taking it, since it will probably continue until you are eligible for medicare. Your new employer may offer a cash incentive if you decline their coverage. Under coordination of benefits, you cannot collect more than the cost of your care. You prob. cannot work long enough to get retiree medical from the new employer, so if you want to Retire Early, before 65, you will need some coverage to bridge this gap. Also unless the new employer is a large company, they may underwrite you to see if you qualify.
SteveL is offline   Reply With Quote

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
Health ins cost bentley Health and Early Retirement 19 05-18-2008 02:55 PM
Health Ins Broker in Seattle? Buckeye Health and Early Retirement 9 04-05-2008 05:26 PM
Next Pres. Election and Health Ins. mikex Health and Early Retirement 222 07-31-2007 08:56 PM
Would you FIRE if you had Group Health Ins? chinaco FIRE and Money 32 06-19-2007 02:54 PM
RE: the post about health ins, credit and health Fireup2020 Health and Early Retirement 13 02-24-2007 03:12 PM


All times are GMT -6. The time now is 05:55 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.