Healthcare coverage preventing RE..

[KidBrother]

Options for Health Care
DW & I retired in 2017 at 63 & 64.
We joined CHM (Christian Healthcare Ministries) in 2017 & are paying $300 monthly for our health care, $150 per unit (Gold Level).

Quoting CHM here:"Our ministry is made up of more than 200,000 members across the country. CHM, a ministry of Christians serving fellow Christians, has been in operation since 1981, is a Better Business Bureau Accredited Charity, and is an eligible option for individuals under the Affordable Care Act (our members are not penalized for not having health insurance). Our website is www.chministries.org"

[GTFan]

Quote:

Originally Posted by mpeirce I understand may people are hyper sensitive about health expenses (because REASONS!), but it seems to me if you are planning ER it's really just another expense that you should check into before pulling the plug. When I FIREd (2011) we had visited a health insurance broker to get a quote on coverage. Didn't seem like a particular ordeal - we'd done this before when I did various stretches of consulting (self employment) in the past. When you are preparing for ER, you should understand your expenses and be able to cover them. All of them.

Sure, but NO ONE in 2011 expected premium increases on the scale that we've seen in the last couple of years. Kinda hard to budget for that.

[GTFan]

Quote:

Originally Posted by HadEnuff If I may make a suggestion: if you are even close to thinking you could retire at age 52, from a job that is taking years off of your life, how about some intermediate move? How about a job that you can live with, that at least pays enough for your healthcare costs? Let the nut grow (hopefully) or at least not get smaller as you work your way through your 50s. Don't despair.

Agreed, OP there are decent PT jobs out there with affordable insurance. Take a look and perhaps step down to a low-stress job, don't stay in something that's killing you.

[24601NoMore]

Quote:

Originally Posted by Livefree I retired this past June, and was able to get a Silver Plan for $468 per month for the wife and I with no deductible and 1500 Out of Pocket. I could have gotten plans for $200 per month, but not many doctors or specialists would take these plans. It did go up $100 for 2018

Where on earth are you finding that? Our deductibles for Silver are $6,500 - $7,350 PER PERSON and a premiums are a LOT higher than $468/mo..

[samcat]

We gave our up our $2300 per month $6k per person deductible bronze plan in December and joined Christian Healthcare Ministries. It's only been three months with no serious medical issues but from what I read, it should work great. We did a lot of research and asking questions and think this is our solution. We are self insuring the small stuff getting cash discounts and getting prescriptions at Costco.

[Livefree]

Quote:

Originally Posted by RetireSoon Where on earth are you finding that? Our deductibles for Silver are $6,500 - $7,350 PER PERSON and a premiums are a LOT higher than $468/mo..

We were able to keep our income below 250% FPL to get cost sharing and that premium by managing our income.

[pb4uski]

Quote:

Originally Posted by RetireSoon Yes, I did price on the ACA website.

What level plan did you get prices for?

You might want to consider moving somewhere with more reasonable health insurance costs.... there are plenty of places in the US where a bronze level plan for 2 is less than $1,000/month... half the cost of what you were quoted.

[gauss]

If OP can manage income to less than 400% FPL and receive the subsidies then he would not need to move anywhere.

Net Premiums will be determined by his MAGI.

Retail prices may be higher in state to state, but the subsidy will increase to offset. Of course, this is all under current law.

The result of the upcoming November elections should provide actionable information on the future of this for OP, as the 2012 presidential election did for myself.
-gauss

[ivinsfan]

Quote:

Originally Posted by Livefree We were able to keep our income below 250% FPL to get cost sharing and that premium by managing our income.

Kind of an important detail...!

[ivinsfan]

Quote:

Originally Posted by pb4uski What level plan did you get prices for? You might want to consider moving somewhere with more reasonable health insurance costs.... there are plenty of places in the US where a bronze level plan for 2 is less than $1,000/month... half the cost of what you were quoted.

With the huge upheaval in the markets that strikes as overkill. What if you move to a place with a small number of insurers and they pull out of the market. Or the only insurer remaining is a high priced option. If you to move fine don't move just to get cheaper insurance....you could end chasing your tail.

[Pilot2013]

I am thinking that the subsidy for people who retire before Medicare (pre-65) will be caught up in changes as we move forward, and this loophole for people to take advantage for ER purposes will be closed. Then it will be back to making a plan (savings) that covers HI as part of one's ER endeavor.

[pb4uski]

Quote:

Originally Posted by pb4uski .... You might want to consider moving somewhere with more reasonable health insurance costs.... there are plenty of places in the US where a bronze level plan for 2 is less than $1,000/month... half the cost of what you were quoted.

Quote:

Originally Posted by ivinsfan With the huge upheaval in the markets that strikes as overkill. What if you move to a place with a small number of insurers and they pull out of the market. Or the only insurer remaining is a high priced option. If you to move fine don't move just to get cheaper insurance....you could end chasing your tail.

What else would you suggest?

OP hates his job, wants to quit and RE but doesn't want to pay $24k/yr in HI premiums nor go the health ministry route. What other options does he have?

It seems to me that moving is better than staying in a job you hate or paying $24k/year for health insurance where he lives now.

Now I would agree that if he does RE and move to find more affordable HI that he should seek out somewhere with a relatively stable HI market.... there are plenty of places like that out there.

[brucethebroker]

Quote:

Originally Posted by ocean view Why is ACA off the table for you? Since you have worked some in 2018, you may not get a large PTC this year, but next year when you presumably only have passive income you could pay very little for ACA.

Yep.
Actually, you would better to use your non-qualified savings or borrow money (HELOC) for your income rather than pull it out of IRA/401-k. OR, start a PT business and write it off your taxes. Gut it out to Medicare.

Aggressive, yes. But legal. It is all about the income, not assets with ACA. Read all you can about how much you can earn. Learn what reduces MAGI. Earn up to the limit you choose and borrow/WD the rest. Worth it, since the
the savings/tax credits are sizable. Become an expert.

[brucethebroker]

Quote:

Originally Posted by Pilot2013 I am thinking that the subsidy for people who retire before Medicare (pre-65) will be caught up in changes as we move forward, and this loophole for people to take advantage for ER purposes will be closed. Then it will be back to making a plan (savings) that covers HI as part of one's ER endeavor.

Could happen. Might not. Plan on today, not what might happen in the future.

[Mr._Graybeard]

Quote:

Originally Posted by brucethebroker Yep. Actually, you would better to use your non-qualified savings or borrow money (HELOC) for your income rather than pull it out of IRA/401-k. OR, start a PT business and write it off your taxes. Gut it out to Medicare. Aggressive, yes. But legal. It is all about the income, not assets with ACA. Read all you can about how much you can earn. Learn what reduces MAGI. Earn up to the limit you choose and borrow/WD the rest. Worth it, since the the savings/tax credits are sizable. Become an expert.

Good post. We also got a lot of good advice on coverage from a private health insurance broker when we signed up for ACA insurance in 2014. The broker gets his commission from the insurer, so he works for the insured free of charge.

[Pilot2013]

Quote:

Originally Posted by brucethebroker Could happen. Might not. Plan on today, not what might happen in the future.

I would agree, if you have 2-3 years until Medicare. If you are trying to ER at 55, I would be very skeptical this loophole won't be identified.

I am hoping a solution to the COST side of this equation can be found, vs continuing to pay higher and higher premiums, subsidized by the working or not.

[ivinsfan]

Quote:

Originally Posted by pb4uski What else would you suggest? OP hates his job, wants to quit and RE but doesn't want to pay $24k/yr in HI premiums nor go the health ministry route. What other options does he have? It seems to me that moving is better than staying in a job you hate or paying $24k/year for health insurance where he lives now. Now I would agree that if he does RE and move to find more affordable HI that he should seek out somewhere with a relatively stable HI market.... there are plenty of places like that out there.

Moving is expensive no doubt about that. At the rollout of ACA my state had one of the better rankings in the country for number of insurance providers and low cost.

That has done a complete 180...some rural portions of the state can only buy an HMO with no access to specialists and 100% cost for out of network providers and the cost is thru the roof .Even the metros areas have lost several major players.

If want to move anyway no problem, but moving just for cheaper insurance could end up being a wild goose chase.

If the OP has no major pre existing conditions I'd probably throw my hat in a health share ministry ...if my only choice otherwise was moving or endangering my health in a stressful job.

[Alvin Tostig]

I have to admit that this thread scares the bejeebers out of me. I could relate to the OP. I've been teetering on the fence to FIRE for two years now..and the biggest issue by far is health care. I've talked the CEO of my company to scale down to 3-4 days a week, and keep my health care. Better than before, but still not thrilled about this.

I'm almost 62 and the DW is 58. We both have pre-existing conditions, mine are more significiant. We also live in a high cost state - NJ. I haven't visit the ACA options in my home state for awhile now, in terms of price and coverage. I believe it's over $20K with high deductibles. I'm going to need to check on this...but we may head out of NJ in a year or two anyway.

I'd love to bow out now and I'd be interested in those on here that 1) took the leap 2)
have pre-existing conditions, 3) are in a state where ACA coverage is relatively high but are using it, 4) are not getting a subsidy.

I'm thinking I may have to go to 63 1/2 to keep my excellent coverage, go to COBRA to 65, then just enroll in COBRA for my wife. But I'd prefer not to.

[ivinsfan]

Quote:

Originally Posted by Alvin Tostig I have to admit that this thread scares the bejeebers out of me. I could relate to the OP. I've been teetering on the fence to FIRE for two years now..and the biggest issue by far is health care. I've talked the CEO of my company to scale down to 3-4 days a week, and keep my health care. Better than before, but still not thrilled about this. I'm almost 62 and the DW is 58. We both have pre-existing conditions, mine are more significiant. We also live in a high cost state - NJ. I haven't visit the ACA options in my home state for awhile now, in terms of price and coverage. I believe it's over $20K with high deductibles. I'm going to need to check on this...but we may head out of NJ in a year or two anyway. I'd love to bow out now and I'd be interested in those on here that 1) took the leap 2) have pre-existing conditions, 3) are in a state where ACA coverage is relatively high but are using it, 4) are not getting a subsidy. I'm thinking I may have to go to 63 1/2 to keep my excellent coverage, go to COBRA to 65, then just enroll in COBRA for my wife. But I'd prefer not to.

Why don't you go ahead and start another thread...you have quite a few questions. You probably won't get many responses several pages into an existing thread. I'm not clear about what you are asking for.

[Alvin Tostig]

correction in last paragraph - - meant ACA for the wife, not COBRA.