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Old 04-05-2017, 09:51 AM   #61
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We are on ACA now and have tasted freedom, so I think there is no going back to full time employment for either of us. Well, I know there is no going back for DH, so I'd either have to get a full-time job or we would move outside the U.S. until Medicare age. Our current plan B if we can't get insurance is to rent out the house until Medicare age and move to Europe where we have family, can get residency and would qualify for low cost medical care.

I like where we live and our friends are here, so if we can get health insurance but it is more expensive we would just absorb the cost or up our hobby income, since we are within striking distance of Medicare now we don't too many years to cover. But if total health care costs for us were more than $200K or so before Medicare age, then I think just in terms of efficient use of our money we would move and do something like use the $200K to buy a flat overseas instead.
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Old 04-05-2017, 10:52 AM   #62
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+1 Having tasted 5 years of freedom there is no way I would want to return to work. Luckily we are Medicare eligible in 2020 and such things typically don't change so quickly that it is likely that healthcare will become unaffordable for us between now and then.. we would likely just grit our teeth and pay the price.
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Old 04-05-2017, 12:44 PM   #63
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I made the final decision to FIRE in December. My last day is this Friday. HI is certainly one of my main concerns. I planned out my cash flow so that my income this year will qualify me for subsidies and same for next year. Whether there are subsidies next year or how much HI will cost...who knows. But I budgeted based on this year's cost assuming no subsidies. That's all I can do.

Once I know when & how the HI landscape will change, then I can plan accordingly. I think worst case is going back to work part-time at a number of large companies (Starbucks, Whole Foods, Costco) that offer HI to part timers.

One of the ways it may have an impact is on where we decide to move. Taxes, weather, location were all part of the equation for picking a place to "retire to". Now healthcare costs will be another consideration as it varies widely based on location.
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Old 04-05-2017, 01:25 PM   #64
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I retired almost 3 years ago at 60. Health insurance was a HUGE part of my decision of when to retire. I am fortunate enough to have retiree medical from Megacorp. While it is a good plan and partially subsidized, it is still pricey. I am paying $760/month for 1 person, with at $1,750 in-network deductible.

I would have retired at least 2 years earlier if I had felt confident that the retiree medical premiums would be affordable and that Megacorp would not stop offering the coverage.

One day 3 years ago, I sat down and made some conservative assumptions about premium growth and OOP numbers. I looked at the 5 year total (to get me to Medicare) and said, "I can do this!!". I left work a few weeks later.

The possibility that Megacorp's plan may be pulled is still of some concern. I live in NYC and there are no plans on the state exchange that offer any out of network coverage. I don't feel comfortable with that. My backup plan is to buy a policy on the open market for about 2 years until Medicare.
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Old 04-05-2017, 01:56 PM   #65
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My date is probably still 10 years out with the young children, so it isn't affecting us directly yet. Ten years out will still leave me with the kids at home, so I'm going to need a way to purchase health insurance for the whole family to retire. We have some relatively minor pre-existing conditions in the family, so if they go back to underwriting for policies we will most likely be delaying retirement for that.

My mother is retired and is only 62 though, and she has an expensive condition that will require her to go back to work until Medicare age if underwriting comes back.
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Old 04-05-2017, 02:30 PM   #66
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We have a kid attending college in another state several hundred miles away from where we live. The only insurer we have available on the ACA will not cover dependents in another state. Our only option is an individual policy for DS ($200-$300/mth) in the state where DS attends school. But if we remove DS from our coverage, the ACA subsidy cliff changes from ~$80k to ~$64k. We had a chance of receiving a subsidy at $80k but certainly not at $64k.
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Old 04-05-2017, 02:33 PM   #67
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I just have one year to Medicare so need ACA (or Whatever) next year. But DW has another 7 years till Medicare. It is VERY worrisome. I wish we could get a decent alternative, without subsidies and profit sharing I do not know what we will do.
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Old 04-05-2017, 02:47 PM   #68
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Carp: most colleges offer health insurance to their students.
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Old 04-05-2017, 02:57 PM   #69
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Carp: most colleges offer health insurance to their students.
Wut? I wondered about that but never researched it. Do you think I would be able to find out more about it on the school's website?

Thanks so much!

*NEVER MIND* - I just found the following on the school's website: (DS college name here) no longer offers student insurance for domestic students.
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Old 04-05-2017, 07:12 PM   #70
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Yes, the cost of HI has definitely delayed early retirement. I reached my retirement number 2 1/2 years ago, but saw the cost of unsubsidized HI in California was skyrocketing. With only personal savings to pay for DH and me, I added nearly 3 years of additional savings. Now I feel more secure and plan to FIRE the end of this year.
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Old 04-05-2017, 08:24 PM   #71
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Now I feel more secure and plan to FIRE the end of this year.
Congrats! Well done.
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Old 04-05-2017, 08:39 PM   #72
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Yes it did us. We waited until we got retiree's health care before we retired. I didn't trust ACA thing. I would still be working I don't have it.
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Old 04-06-2017, 08:24 AM   #73
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Carpediem: Number 2 of the ten essential benefits with ACA provides for Emergency Care even if out-of-network without penalty - ObamaCare Essential Health Benefits
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Old 04-06-2017, 08:52 AM   #74
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Yes it did us. We waited until we got retiree's health care before we retired. I didn't trust ACA thing. I would still be working I don't have it.
I retired as soon as I vested in my employer's pension and retiree health insurance.....10 years and 1 month. However, I was 53 and had to wait until 55 before I got full retiree pension and health insurance, but my employer allows "deferred retirees" to buy health insurance at the full cost, sort of never ending COBRA. So that's what I did. The premium was $500/month, but as my income was below FPL I qualified for Medicaid or a $450/month state subsidy. I took the subsidy so paid $50/month for health insurance for two years. I just turned 55 and went on full retiree insurance which costs $100/month. I'm very grateful that I have a good plan that is inexpensive.
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Old 04-06-2017, 09:09 AM   #75
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We RE'd last summer, but I'm on severance w/full medical until this August, and then can Cobra after for 18 months (not cheap, but cadillac coverage). Due to the severance we would not qualify for ACA subsidies anyway until 2019 at the earliest.

We may have held out if the current issues were last year, but the RIF/severance wasn't going to be there if we OMY'd again, so that would have been a wash (and I was DONE, and needed 8 more years for MC retiree medical so nfw).

We have more than a decade to medicare so we'll just have to figure it out. We have some wiggle room in our budget. I have to figure it'll get worse, and then it will get better, these things tend to go in cycles.
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Old 04-06-2017, 02:11 PM   #76
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I'm not postponing... I caught the OMY disease for a couple years, but finally gave notice in January and my last day working will be May 5. I'll use COBRA for the following 18 months and then hopefully this HI mess stabilizes. I'm 47 with 2 young kids, so HI will be a big part of my FIRE expenses.
Consider delaying retirement 4 weeks. Your COBRA will end in November, which means you have to sign up for insurance for December and again in January. It's not a big deal, but I wish I had thought of this before I retired last May.
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Old 04-06-2017, 02:47 PM   #77
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Originally Posted by Carpediem View Post
We have a kid attending college in another state several hundred miles away from where we live. The only insurer we have available on the ACA will not cover dependents in another state. Our only option is an individual policy for DS ($200-$300/mth) in the state where DS attends school. But if we remove DS from our coverage, the ACA subsidy cliff changes from ~$80k to ~$64k. We had a chance of receiving a subsidy at $80k but certainly not at $64k.
I didn't think an insurer issuing ACA plans could refuse to cover dependents no matter where they live... are you sure about that?

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The Patient Protection and Affordable Care Act (ACA) mandates that all health insurance carriers in every state that offer coverage to both adults and their dependents must allow dependents to remain on their parents or guardians’ “family” plans until the dependents are 26 years old. The issued regulations state that young adults are eligible for this coverage regardless of any, or a combination of any, of the following factors: financial dependency, residency of the young adult, student status, employment status, or marital status. This applies to all plans in the individual market and to almost all employer plans (small group, large group, including self-funded or so-called ERISA plans) created after March 23, 2010.
Dependent Health Coverage and Age for Healthcare Benefits
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Old 04-06-2017, 03:03 PM   #78
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Originally Posted by Carpediem View Post
We have a kid attending college in another state several hundred miles away from where we live. The only insurer we have available on the ACA will not cover dependents in another state. Our only option is an individual policy for DS ($200-$300/mth) in the state where DS attends school. But if we remove DS from our coverage, the ACA subsidy cliff changes from ~$80k to ~$64k. We had a chance of receiving a subsidy at $80k but certainly not at $64k.
Our expenses are more than $64K a year, but we took out a HELOC to cover some of the difference. The interest on the HELOC is much less than we get in subsidies so the math works out for us.
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Old 04-06-2017, 03:26 PM   #79
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I didn't think an insurer issuing ACA plans could refuse to cover dependents no matter where they live... are you sure about that?
If the insurance plan is an HMO or has a local / regional network, a child on the policy going to an out of state university would be considered "out of network" for everything other than emergency treatment.
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Old 04-06-2017, 03:34 PM   #80
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Understood, but Carp said that the insurer would not cover.
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