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Healthcare and the Marriage Penalty
Old 11-17-2014, 12:51 PM   #1
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Join Date: Feb 2014
Location: Eagan, MN
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Healthcare and the Marriage Penalty

This is a terrific country; it is geared towards early retirement.

My DGF of 24 years wants to quit work when I do. She is will only be 45, and I will be 56. From what I see, I have enough income to support myself and pay all of the bills for a few years. If we travel, it will be easier to do it if she is not working. The great unknown is her healthcare.

I plan on paying her from my rental business ~$10K per year, on a W2 basis. That will allow her to get more years to apply to the 35 year average for her SS. It will be at the maximum benefit calculation of the first SS bend point which is $816 monthly in 2014. It will also have enough money for a Roth contribution. The plan is that she should not have to touch her investment accounts until she turns 55. I am planning in the same. But what to do about healthcare is the $64K question.

I just found out that Minnesota has a program called Minnesota Care. It has a similar doctor network to what we have now via Megacorp healthcare. The plan includes 100% dental, pharmacy, and all health care. It even provides up to three round-trip ambulance (or 6 one-way) trips per month. I am not sure how you get a round trip ambulance ride, but it’s covered. It will pay for the local shuttle to the appointments too, if you want.

The plan is income based, and the premium for a single person, no dependents, for someone making ~$12K per year is ~$12 per month. No co-pays, no deductibles; just $12. There are no asset limits.

If we were married, I would be stuck paying the full share of the healthcare, which could be $300 per month, plus another $3K deductible, or at least $6K per year.

No wonder taxes are so high, but I am planning on her taking advantage of it. That is, assuming my initial findings as listed above is correct.

FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
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Old 11-17-2014, 02:28 PM   #2
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Join Date: Aug 2011
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MinnesotaCare provides coverage for people who do not have access to affordable health insurance and have higher income levels than those served on the MA program.
I wonder what they consider to be "access to affordable health insurance" and if this would be a limitation on your DGF's enrollment.

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