Health insurance premium up 25%

[Scuba]

Yikes! We were just notified that our medical insurance premiums will increase 25% starting in April. Before ER, we budgeted for higher HC costs, but not for 25% inflation. And we still have 6-8 years to go before Medicare, assuming they don’t raise the age before then. Good thing our budget has some cushion, although we had hoped to spend it on more fun things.

 

[gstillson]

April seems a weird time. Not an ACA policy I guess?

 

[Freedom56]

Our insurance this year was $962 per month versus $878 per month in 2018 for a Bronze EPO with OSCAR health (for two of us). The PPO retirement health insurance plan with my former employer is now up to $2820 per month for an equivalent plan to a gold plan which we don't need. It was $1920 per month in 2015 when we retired. We just wanted access to the same doctors and facilities that we had while working and right now OSCAR is the most inexpensive hassle free way to go for our situation. We had Anthem Blue Cross and Blue Shield of California which were both horrible when it came to claims processing for preventive care. Anthem Blue Cross exited the individual market place and Blue Shield is about 29% more expensive for pretty horrible service.

 

[HarveyS]

Been there, done that. Between 2016 and 2017 my BCBS plan increased 86%! Yes, you read that right. Eighty six percent!

I went to an independent insurance agent and he provided alternatives. Everyone's situation is different, and using an agent helped me see options I was not aware of.

I'm in good health and no prescription meds so I moved to a health care sharing account. This doesn't work for all, but has been OK for me.

 

[gstillson]

Really need some numbers though instead of percentages, because someone's health insurance might increase from $20 a month to $30 a month which would be a 50% increase but really small in the grand scheme of things.

 

[HarveyS]

fair enough....
$980/mo to over $1,800/mo

I'm happy for those paying $20 or $30/month. Wish I could be so lucky!

 

[gstillson]

fair enough....
$980/mo to over $1,800/mo

I'm happy for those paying $20 or $30/month. Wish I could be so lucky!

That is a BIG jump

 

[Nick12]

Texas friends ( gringos) cross the border to get medical care in Northern Mexico at a cheaper cost. Especially for dental work.

 

[Dtail]

Texas friends ( gringos) cross the border to get medical care in Northern Mexico at a cheaper cost. Especially for dental work.

So where can we go - eventually Cuba?

 

[W2R]

Yikes! We were just notified that our medical insurance premiums will increase 25% starting in April. Before ER, we budgeted for higher HC costs, but not for 25% inflation. And we still have 6-8 years to go before Medicare, assuming they don’t raise the age before then. Good thing our budget has some cushion, although we had hoped to spend it on more fun things.

That's awful! I am so sorry that you are facing such a stiff increase. Thank goodness your budget has some cushion - - smart planning on your part. If you didn't have that cushion you might be up a creek without a paddle (as the saying goes).

F's health insurance went up a lot too, but he will be on Medicare later this year. Meanwhile he has tuned up his LBYM habits and is thinking of selling some things he owns but never uses.

 

[Midpack]

We’re about to enter the after Megacorp before Medicare abyss. Not looking forward to it. For me only 2 months, but for DW it’ll be 30 months. I shouldn’t have married a young chick...

Good luck Scuba.

 

[Car-Guy]

My private insurance (company retiree subsidized gold plan) was ~245 mo. However, when I turned 65 I had to move to Medicare and now it's costing me 460 a mo just for part B. Paying more than double on the Government insurance and I'm not even getting the same levels of coverage. Although, Medicare hasn't been too bad so far, expect for the higher premiums.

 

[Packman]

Two years ago, we paid $680/month for the lowest cost bronze plan on the ACA (for 2 people). Our premium in 2019 is $1,750/month, again a high deductible bronze plan. 157% increase in two years! When does the madness end?

 

[zinger1457]

Texas friends ( gringos) cross the border to get medical care in Northern Mexico at a cheaper cost. Especially for dental work.

I live in Arizona and do that for dental care, don't have dental insurance and can save >50% and still get quality dental work. Don't go there for medical care.

My insurance premiums increased 440% pre ACA to today for very similar HSA HDHP, lucky to get ACA subsidys to ease the blow.

 

[Scuba]

April seems a weird time. Not an ACA policy I guess?

Correct, it’s a pre-ACA grandfathered policy.

 

[Scuba]

In 2018, we paid $892/month. Going up to $1,114 in April 2019. Back in 2017 we were paying less than $700/month. It’s not like we’ve had any major claims either. We never come close to meeting our huge deductible.

 

[EastWest Gal]

In 2015, we paid $831/mo for 3 on ACA plan. 2016 it was $960/mo. $2017 it was $1900/mo. I decided on employment for a couple of years because of this. But being miserable at work, I’m quitting for good in May. Looked at the plans this year. Down to about $1600.

After a 100% jump in one year, it’s good to see some premium stability.

 

[Bir48die]

Real number. Nov & Dec 2017 $692 silver plan single person. Jan-Dec 2018 $869/mth. For 2019 $925/mth. That doesn't count $7,500 OOP after surgery with deductibles and co-pays.

 

[Truckinalong]

You guys must have high retirement incomes. My plan before medicare largely involves living off bond fund principal withdrawals and interest income that would be below the levels necessary to qualify for ACA subsidy.

 

[GTFan]

Yeah most of the folks here that can't get ACA subsidies due to high income hate the ACA because insurance is so expensive. I get that.

 

[Truckinalong]

I get that too, that's another thread, there are a lot of us that fall between a bare bones Mr. Mustache approach to FIRE and someone who has $100K in dividend or other investment income.

I will be structured to live mostly off after tax account withdrawals until 59.5 or even 65 medicare age depending.

The challenge might actually be actually creating enough income so as not to trigger medicaid since the withdrawals will not.

Or Medicare for all may arrive in said 10 year window and throw all of this out the window.

 

[Beststash]

Retired at 52 - My family and I went through the same situation during our 55-62 age period after my employer eliminated all pre-65 insurance. We loved it when ACA came about for 63-64 period and since Medicare really cool! Once you go through an unexpected 20K yearly healthcare expense Medicare really seems very nice. Thanks LBJ!

 

[Dtail]

I get that too, that's another thread, there are a lot of us that fall between a bare bones Mr. Mustache approach to FIRE and someone who has $100K in dividend or other investment income.

I will be structured to live mostly off after tax account withdrawals until 59.5 or even 65 medicare age depending.

The challenge might actually be actually creating enough income so as not to trigger medicaid since the withdrawals will not.

Or Medicare for all may arrive in said 10 year window and throw all of this out the window.

Bolded - can you convert just enough TIRA to Roth to get you over the minimum required for ACA inclusion?

 

[Truckinalong]

Bolded - can you convert just enough TIRA to Roth to get you over the minimum required for ACA inclusion?

Very good question, I need to look into this. Presumably I can. If I understand correctly, I leave employer, roll 401K into traditional IRA, then convert just enough each year to roth IRA whereby you pay the taxes on conversion and it is treated as income.

 

[Smitty700]

Very good question, I need to look into this. Presumably I can. If I understand correctly, I leave employer, roll 401K into traditional IRA, then convert just enough each year to roth IRA whereby you pay the taxes on conversion and it is treated as income.

Exactly. This is the situation I'm in now. I monitor my income closely throughout the year, then do a Roth conversion in December for the difference so that my income is where I need it to be.