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-   -   Healthcare costs (http://www.early-retirement.org/forums/f28/healthcare-costs-48596.html)

golfnut 02-07-2010 11:59 AM

Healthcare costs
 
My employer subsizes hc costs for retirees (55 yrs old min.) The total cost is $1,183/month for a $4,000/$8,000 deductible plan. This is the cost for a family of 3 (myself, wife and son).

My employer contributes $533/month. So net cost would be $650/month or $7,800 per year. I realize we would need to set up a HSA account as well.

Employers plan is with Universal. I also realize they can discontinue this retiree plan at any time.???

Is this a good deal or would we be better off checking health plans on our own?

Any thoughts/insights would be helpful.

Thanks,

Golfnut

plex 02-07-2010 02:45 PM

With 3 people in the plan, with two of them in the 55-64 y/o range, it is probably a good deal (depending on what it covers, and what its maximum cap is). 20-29 year olds are extremely inexpensive to cover (600-1k/yr), but the 55-64 range is the most expensive age range, it is usually 5k+ per person for a HDHP, and that is if they are in good health, many in the 55-64 range are uninsurable and cannot switch to a private plan. The HDHP would be more comprehensive after both spouses are 65+, but also much more expensive than medicare at 65+.

golfnut 02-07-2010 02:48 PM

Plex,

Thanks, our ages are 55, 52 and 17. Assume your comments would remain the same?

bbbamI 02-07-2010 02:57 PM

Comparing your retiree plan to ours, your plan is not too bad. We pay $210 a month for two people over the age of 50 (with a $2400 deductible). I think if we had a third person on our policy, our cost would be around $500 a month.

plex 02-07-2010 05:29 PM

Yes, same advice.

Also though, it depends on how quickly your employer's rates increase, it is entirely possible that a 20-40% increase could come along (or a subsidy decrease), and it may make switching a significant savings, increases really start adding up in the 50+ age range. The main reason your employer health insurance is probably more expensive (pre-subsidy) is because people with pre-conditions will invariably stay in it, because they cannot get private health insurance. But, before considering switching, research the plans you are interested in and see what people say about how quickly they increase rates after the first year, also make sure your are covered under the new plan before canceling the old coverage.

golfnut 02-07-2010 08:17 PM

Thanks to all for the insights.

golfnut 02-19-2010 05:11 PM

Just got the 2010 retiree HC costs from my employer. now the net cost would be $800/month or $9,600 per year-a 23% increase over last year. yikes!


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