medical insurance cost after retirement

[engr]

I work for a large corporation and looking into retirement. for 23 years of service I can purchase medical insurance where I contribute 31% of the policy cost while the company contributes 69%. The company's will contribute up to $816/mo;after that I pay 100% of the difference in price.. I figured if a policy costs 1182/mo then 69% of that is 816/mo which is the max the company will contribute. My contribution for 1182/mo would be 31% of 1182 or $366.

So I called up and found out that for family coverage (2 of us) the cost is $1464/mo. This takes into account the company contribution as stated above.

I was surprised that the policy was that expensive - even after the company's contribution of 816/mo. About 6 years back I was laid off and my wife developed cancer. fortunately she could get cobra . At that time we were paying 1600/mo which I thought was outrageous but what choice do you have but to pay it.

When I compared my 23 years of service costing 1464/mo and my wife's previous cobra premium of 1600/mo it makes me think that I put in a lot of years with the company and not getting much, if anything, as a break in premiums over the standard cobra costs.

It seem very one-sided - especially when the company can terminate/change it's medical plan at any time. I'm sure the premiums will go up every year.

Anyone else surprised at their retiree medical expenses??

 

[ERhoosier]

Unfortunately your story is not surprising. HI premiums have risen a lot over past 6yrs, and employee contributions have gone up markedly as well.

You might delay your retirement until the HI Exchange is running in your state next yr. It's possible your net costs might be lower depending on your age & income.

 

[Chuckanut]

When I compared my 23 years of service costing 1464/mo and my wife's previous cobra premium of 1600/mo it makes me think that I put in a lot of years with the company and not getting much, if anything, as a break in premiums over the standard cobra costs.

I continue to be amazed at the number of people who get free or subsidized medical insurance from their corporate employers. You are lucky. I pay 100% of my medical premium.

 

[jollystomper]

I'm not surprised. At my Megacorp the handwriting was on the wall back in the late 90's when they changed the retiree health plan to setting aside a pot of money that could be applied to plans they offered. At the they claimed this would be a good "bridge" to Medicare. However, with rising premium costs that "bridge" would only cover us (3) for 2-3 years. That might be fine if you wait to 62+ to retire, but they have done enough layoffs since then to make that a pipe dream. All one can do is plan around that. Since they can change this at any time, I'm waiting to see what happens come October when they release their options for 2014.

 

[Brett_Cameron]

Sorry for your misfortune but be glad you do not have to pay it all!

 

[jerome len]

I'd grab it! And, you should expect that your cost will probably go up substantially next year when Obamacare kicks in. Most companies/individuals have seen costs go up 7 to 10% each of the past six years. When you add cost increases, you're getting a good deal and I doubt that you could get adequate coverage elsewhere, especially with your DW having a health expense history. I suspect, but don't know your income, that medicare for two could be equally as expensive .......but that will vary by the plan you take and availability of options in the area in which you live. Good luck......I'm facing higher health care costs than you.

 

[KingB]

I continue to be amazed at the number of people who get free or subsidized medical insurance from their corporate employers. You are lucky. I pay 100% of my medical premium.

+1.
To OP: Be thankful for what you get.
I had 38 years with megacorp - no retirement health benefit.
DW with 35 years on megacorp - retirement health benefit offered at 2K/month for both of us. We declined.
We went to COBRA and we paid 102% of our premium. It is still less than half of the retiree health benefit.

 

[Turn_the_Page]

I too have 23 years with my mega-corp. I could retire in 2014. My heathcare cost for the company provided insurance after retirement for DW and myself will be just north of $1000, as the retirees pay most, if not all of the premium. All the company is providing for us is the right to stay in the plan. I actually consider us to be lucky. Lots of people don't even get that.

 

[heeyy_joe]

As Arnold would say:

Stop Whining - YouTube