Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Health Insurance in ER?
Old 01-03-2011, 01:15 PM   #1
gone traveling
 
Join Date: Dec 2010
Posts: 30
Health Insurance in ER?

With individual private health insurance getting more and more expensive, I'm curious how members here are planning their medical coverage before Medicare elegibility? Some of us here are even talking about ER in our 40's let alone early 50's.

I know some companies offer retiree health coverge, but those companies are getting rarer and rarer. And those that do offer it, the premiums are now (for the most part) quite high.

So how are you guys doing this? High deductible policies or just paying huge individual premiums?
__________________

__________________
observer 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 01-03-2011, 01:36 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Jul 2010
Location: Chicago
Posts: 1,001
Private insurance for us. We just got approved this morning for a high deductible polcy using Costco/Aetna. I'm 48, DW is 47 and son is turning 11 tomorrow. It's a 70%/30% co pay, $5000 deductible, max family out of pocket of $16k, includes dental and Costco generics Rx for $15. Cost is $455/mo, sure beats $1200/mo for Cobra!

Costco only offers this in 4 states right now, Il,Pa,Tx and Ga.
__________________

__________________
Dimsumkid is offline   Reply With Quote
Old 01-03-2011, 01:41 PM   #3
gone traveling
 
Join Date: Dec 2010
Posts: 30
Quote:
Originally Posted by Dimsumkid View Post
Private insurance for us. We just got approved this morning for a high deductible polcy using Costco/Aetna. I'm 48, DW is 47 and son is turning 11 tomorrow. It's a 70%/30% co pay, $5000 deductible, max family out of pocket of $16k, includes dental and Costco generics Rx for $15. Cost is $455/mo, sure beats $1200/mo for Cobra!

Costco only offers this in 4 states right now, Il,Pa,Tx and Ga.
That's a great package at the price. Congrats on being so savvy in finding that.
__________________
observer is offline   Reply With Quote
Old 01-03-2011, 01:48 PM   #4
Thinks s/he gets paid by the post
frayne's Avatar
 
Join Date: Oct 2002
Location: 19th Hole
Posts: 2,535
Retired when I was 55 and have retiree health insurance, cost about $6K per year for DW and I.
__________________
A totally unblemished life is only for saints.
frayne is offline   Reply With Quote
Old 01-03-2011, 01:54 PM   #5
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,134
Quote:
Originally Posted by observer View Post

So how are you guys doing this? High deductible policies or just paying huge individual premiums?
Yes...and yes.

I retired at 58, DW was 56. After 18 months on COBRA, I purchased a $5000 deductible BC/BS policy and DW went into the state pool for similar coverage. We later increased her deductible to $7,500 to reduce costs.

Now we are 64/62 and our annual premiums in 2011 will run around $11K.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 01-03-2011, 01:57 PM   #6
Thinks s/he gets paid by the post
 
Join Date: Jul 2010
Location: Chicago
Posts: 1,001
Quote:
Originally Posted by observer View Post
That's a great package at the price. Congrats on being so savvy in finding that.
We live in the Chicago area too, so you can look into it since you're in the same area. They have higher/lower deductible options to consider based on your own financial risk tolerance vs. coverage. They want 3 years of medical history, I have early arthritis, very mild, but they made me get more details before I got approved. No other health issues in the family and pregnancy/maternity isn't covered. I'm sure they assumed I needed a hip replacement. I had to get my Dr. to amend her notes stating the situation was very mild. I don't even take aspirin for it!
__________________
Dimsumkid is offline   Reply With Quote
Old 01-03-2011, 02:03 PM   #7
gone traveling
 
Join Date: Apr 2009
Location: Eastern PA
Posts: 3,851
Retired from mega-corp at age 59 and have contributory medical for pre/post Medicare through them (e.g. their plan becomes our medi-gap policy).

I currently pay just over $6k/year for both of us. Actually, this is just a bit over what I had to pay while wor*ing there (around $400/mo for both of us) so the increase was not bad, since we planned at 100% of expenses for pre to post-retirement.

The rate will drastically drop in another two years, when we both are on Medicare and their insurance will just be used to pick up the 20% of Medicare that is not paid...
__________________
rescueme is offline   Reply With Quote
Old 01-03-2011, 02:12 PM   #8
Full time employment: Posting here.
 
Join Date: Apr 2006
Posts: 925
Probably HSA eligible plan for first year then Mexico for a few years.
__________________
If there's one thing in my life that's missing; It's the time I spend alone
Sailing on the cool and bright clear waters; There's lots of those friendly people
Showin me ways to go; And I never want to lose your inspiration
CoolChange is offline   Reply With Quote
Old 01-03-2011, 04:48 PM   #9
Thinks s/he gets paid by the post
zinger1457's Avatar
 
Join Date: Jul 2007
Posts: 1,454
Retired at 52, have a high deductible ($5000) HSA plan with Aetna. No pre-existing conditions so the cost for myself is $166/month. I have been fortunate in that my health has been good and I work at keeping it that way. The only need I have had to see a doctor since retiring is for an annual physical and flu shots which are covered as preventive care and are paid for before the deductible.
__________________
zinger1457 is offline   Reply With Quote
Old 01-03-2011, 07:57 PM   #10
Full time employment: Posting here.
 
Join Date: Nov 2009
Location: VA
Posts: 923
Quote:
Originally Posted by Dimsumkid View Post
Private insurance for us. We just got approved this morning for a high deductible polcy using Costco/Aetna. I'm 48, DW is 47 and son is turning 11 tomorrow. It's a 70%/30% co pay, $5000 deductible, max family out of pocket of $16k, includes dental and Costco generics Rx for $15. Cost is $455/mo, sure beats $1200/mo for Cobra!

Costco only offers this in 4 states right now, Il,Pa,Tx and Ga.
Buying health insurance without brand name Rx coverage is like buying health insurance without hospital coverage. There are a lot of prescriptions with no generic alternative that can cost hundreds or thousands of dollars per month that wouldn't be covered under your plan.

I'd talk to an agent instead of Costco and look into an HSA policy with full brand name Rx coverage....that is, if I were in your position. You could probably reduce your max OOP for the whole family to $5-6k for about the same price with much better Rx coverage.
__________________
Disclaimer - I am an independent insurance agent. If the above message contains insurance-related content, it is NOT intended as advice, and may not be accurate, applicable or sufficient depending on specific circumstances. Don't rely on it for any purpose. I do encourage you to consult an independent agent for insurance-related advice if you have a question that is specific in nature.
dgoldenz is offline   Reply With Quote
Old 01-03-2011, 08:17 PM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
dex's Avatar
 
Join Date: Oct 2003
Posts: 5,105
I'm single 55, retired 4.5 years and am paying aprox. the same rate for all those years - now $2684/year. That amount may go down by $300 because I'm questioning the rate increase for pins in my collar bone that have been there for 5 years and the previous policies didn't go up because of them. I use BCBS of Georgia for all that time. It has a deductible of $5K with a max out of pocket of $8K or $7,500.

I use a 15% growth rate for health ins. I'm estimating I'll be paying $8,616/year in 2020 when I turn 65 - 23% of my estimated budget.

You can keep the costs down by looking at alternative plans annually and switching. If you don't have a pre-existing condition it shouldn't be a problem. There are many plans with BCBS that are very similar. The difference between my old and new plan is how the emergency room plan - a small difference.
__________________
Sometimes death is not as tragic as not knowing how to live. This man knew how to live--and how to make others glad they were living. - Jack Benny at Nat King Cole's funeral
dex is offline   Reply With Quote
Old 01-03-2011, 08:28 PM   #12
Thinks s/he gets paid by the post
 
Join Date: Jul 2010
Location: Chicago
Posts: 1,001
Quote:
Originally Posted by dgoldenz View Post
Buying health insurance without brand name Rx coverage is like buying health insurance without hospital coverage. There are a lot of prescriptions with no generic alternative that can cost hundreds or thousands of dollars per month that wouldn't be covered under your plan.

I'd talk to an agent instead of Costco and look into an HSA policy with full brand name Rx coverage....that is, if I were in your position. You could probably reduce your max OOP for the whole family to $5-6k for about the same price with much better Rx coverage.
I'm willing to look into cheaper and better coverage. I know that coverage rates are state specific, even zip code specific. If you know something that I should consider for Chicago, let me know. The Rx doesn't bother me at all, we don't have any Rx's and rarely ever have. If you have something specific in mind, let me know. We talked to Aetna throughout this process, they're the provider for the Costco health insurance.
__________________
Dimsumkid is offline   Reply With Quote
Old 01-03-2011, 08:31 PM   #13
Full time employment: Posting here.
 
Join Date: Nov 2009
Location: VA
Posts: 923
Quote:
Originally Posted by Dimsumkid View Post
I'm willing to look into cheaper and better coverage. I know that coverage rates are state specific, even zip code specific. If you know something that I should consider for Chicago, let me know. The Rx doesn't bother me at all, we don't have any Rx's and rarely ever have. If you have something specific in mind, let me know. We talked to Aetna throughout this process, they're the provider for the Costco health insurance.
Most people say that....until they need a $5k/month prescription and it's too late to get other coverage because you're now uninsurable. You're also not currently in the hospital and probably rarely have been, but you have the insurance in case you are in the future.

Even Aetna should have HSA plans with full Rx coverage if you want to stay with them.
__________________
Disclaimer - I am an independent insurance agent. If the above message contains insurance-related content, it is NOT intended as advice, and may not be accurate, applicable or sufficient depending on specific circumstances. Don't rely on it for any purpose. I do encourage you to consult an independent agent for insurance-related advice if you have a question that is specific in nature.
dgoldenz is offline   Reply With Quote
Old 01-03-2011, 09:10 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
bbbamI's Avatar
 
Join Date: Dec 2006
Location: Dallas 'burb
Posts: 9,039
Retiree medical benefit with a $2400 deductible costs $240 a month for DH (56) and yours truly (53). I hope we continue to receive this benefit...even if the premium doubles. Finding insurance with pre-existing conditions would be very difficult and costly.
__________________
There's no need to complicate, our time is short..
bbbamI is offline   Reply With Quote
Old 01-03-2011, 09:34 PM   #15
gone traveling
 
Join Date: Dec 2010
Posts: 30
Quote:
Originally Posted by bbbamI View Post
Retiree medical benefit with a $2400 deductible costs $240 a month for DH (56) and yours truly (53). I hope we continue to receive this benefit...even if the premium doubles. Finding insurance with pre-existing conditions would be very difficult and costly.
Great policy... try to keep it at all costs (so to speak). Generous company to its retirees.
__________________
observer is offline   Reply With Quote
Old 01-03-2011, 09:36 PM   #16
gone traveling
 
Join Date: Dec 2010
Posts: 30
Quote:
Originally Posted by frayne View Post
Retired when I was 55 and have retiree health insurance, cost about $6K per year for DW and I.
Also reasonable. I see $10-17k per year is typical range for retiree family annual premium.
__________________
observer is offline   Reply With Quote
Old 01-03-2011, 10:37 PM   #17
Full time employment: Posting here.
 
Join Date: Apr 2009
Posts: 731
Quote:
Originally Posted by dgoldenz View Post
Most people say that....until they need a $5k/month prescription and it's too late to get other coverage because you're now uninsurable. You're also not currently in the hospital and probably rarely have been, but you have the insurance in case you are in the future.

Even Aetna should have HSA plans with full Rx coverage if you want to stay with them.
Does the Costco plan ONLY cover the generics or does it perhaps have a higher co-pay for non-generics?

I've known people who suddenly were on terribly expensive drugs, as dgoldenz said. You need some protection. Unfortunately, it only takes one severe hospitalization/surgery/illness etc. to change your whole medical situation.

I think I used to be healthy.... but that all changed in a day.
__________________
Retired July 2, 2010 at 62. My only regret is that I couldn't do it sooner.
thinker25 is offline   Reply With Quote
Old 01-03-2011, 10:45 PM   #18
Full time employment: Posting here.
 
Join Date: Nov 2009
Location: VA
Posts: 923
Quote:
Originally Posted by thinker25 View Post
Does the Costco plan ONLY cover the generics or does it perhaps have a higher co-pay for non-generics?

I've known people who suddenly were on terribly expensive drugs, as dgoldenz said. You need some protection. Unfortunately, it only takes one severe hospitalization/surgery/illness etc. to change your whole medical situation.

I think I used to be healthy.... but that all changed in a day.
I'm pretty sure all of Aetna's $5k deductible plans only cover generic Rx, no brand name coverage.
__________________
Disclaimer - I am an independent insurance agent. If the above message contains insurance-related content, it is NOT intended as advice, and may not be accurate, applicable or sufficient depending on specific circumstances. Don't rely on it for any purpose. I do encourage you to consult an independent agent for insurance-related advice if you have a question that is specific in nature.
dgoldenz is offline   Reply With Quote
Old 01-03-2011, 10:50 PM   #19
Full time employment: Posting here.
 
Join Date: Apr 2009
Posts: 731
Quote:
Originally Posted by dgoldenz View Post
I'm pretty sure all of Aetna's $5k deductible plans only cover generic Rx, no brand name coverage.
NOT GOOD, then!
__________________
Retired July 2, 2010 at 62. My only regret is that I couldn't do it sooner.
thinker25 is offline   Reply With Quote
Old 01-03-2011, 10:59 PM   #20
Thinks s/he gets paid by the post
 
Join Date: Jul 2010
Location: Chicago
Posts: 1,001
The Pharmacy deductible per Individual on the Costco plan is $500 (does not apply to generics). Generics are $15/20 (ind/family) deductible waived, preferred brand $30/$35 after deductible and non preferred brands are $45/50 after deductible.
__________________

__________________
Dimsumkid 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
Health Insurance inquisitive Young Dreamers 9 12-17-2010 06:06 AM
How about health insurance? billin Health and Early Retirement 2 05-11-2010 03:55 AM
health history for health insurance vic Health and Early Retirement 22 10-26-2006 10:07 AM
health insurance and effect on increased health care costs Martha Other topics 9 08-08-2006 02:54 PM
Health insurance? dory36 FIRE and Money 23 03-16-2004 03:18 PM

 

 
All times are GMT -6. The time now is 04:29 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.