Poll: How do you handle healthcare in retirement?

[marko]

That category contains quite a wide range of plans. Just because it is former employer coverage does not mean that someone else is picking up the first 20k. I wish! However it did give me the ability to purchase insurance for slightly less than the unsubsidized ACA plans. This year the rates went up 30% which made the ACA rates less. But if I left the employee plan there's no going back.

While I'm sure some have little or no cost, many corporate plans are not the gravy train your post suggests. Still expensive but I am grateful I have the option.

I probably read more into it than is there. You know what happens when you 'assume'!!

Having been paying $20K for the past 13 years of RE I'm always astounded at folks who pay something like $500 a month for HC.

 

[foxfirev5]

I probably read more into it than is there. You know what happens when you 'assume'!!

Having been paying $20K for the past 13 years of RE I'm always astounded at folks who pay something like $500 a month for HC.

Yeah, I'm not quite 20k per year but the HDHP premiums and HSA (which is dwindling fast) are getting us right in that ballpark. I was lucky enough to have invested in an old RMSA retiree medical savings plan for 15 years. Hopefully that will hold out for a few more years. I rationalize the withdrawals by thinking that wasn't my money anyway. Just a partial prepayment of premiums.

 

[ABQ2015]

In looking at the poll results I was surprised to see how many are receiving long-term gov't, military or former employer insurance.

Could one infer that is almost a pre-requisite for RE? Or is it just an added cushion to making the RE decision? FI can be a lot easier when someone else is picking up the first $20K.

I graduated college and started my career late at age 30. It took until age 60 to get to full pension eligibility and become FI so I'm not a true RE. The insurance is nice but by this age I would be willing and able to pay $10-12K a year (Self only) out of pocket just to retire, especially given I am only a few years from Medicare. I do not qualify for ACA subsidies as my retirement income is taxable and above the limits.

 

[Scuba]

We have a pre-ACA grandfathered PPO plan. Premiums went up almost 25% this year to around $950/month for the two of us. Deductibles are $5,900 each. Expensive, but not as expensive nor as restrictive as Covered CA plans so we are hoping to keep this until Medicare. DH is 58 and I’m 57 so we have quite a few more years to go. Luckily neither of us has any chronic health conditions so although our max OOP is quite high, so far we haven’t come anywhere near it. Hoping we can keep it that way!

 

[akidagain2018]

When getting close to FIRE, I considered various options to cover health care. Single plan, maybe via a professional network to achieve a better rate, then ACA became an option, all of which would be estimatable and I considered the monthly/annual/lifetime cost possibilities. Then decided I could stick it out for another 8+ years at a perfectly fine job that isn't the best fit for me, making it very difficult to stay. I'll be leaving with group rate former employer coverage I plan to retain over Medicare when the time comes.

 

[DEC-1982]

Less than 8% participating in this poll are on Medicare?

 

[jimbee]

Less than 8% participating in this poll are on Medicare?

This is the EARLY retirement forum.

 

[Dtail]

This is the EARLY retirement forum.

Plus the substitute retiree insurance percentage is fairly high.

 

[Teacher Terry]

Just because it came from a former employer does not mean it is cheap. We are state retirees and pay 12k/year.

 

[Dtail]

Just because it came from a former employer does not mean it is cheap. We are state retirees and pay 12k/year.

Noted. Was just commenting on the low Medicare %, not necessarily the cost.

 

[Zig56]

We have Florida blue ACA $79.00 a month for the 2 of us silver plan with cost sharing.

 

[Dtail]

We have Florida blue ACA $79.00 a month for the 2 of us silver plan with cost sharing.

Hi Zig56
I also have a Florida Blue ACA Silver plan with cost sharing. I have a household income of 24k with my brother as a dependent of mine. We are 57 and 58.
However I pay around $300 total monthly.
Wondering about the difference vs. your monthly number as our income is fairly small. Do you mind divulging what ACA income you submitted?

 

[DEC-1982]

Just because it came from a former employer does not mean it is cheap. We are state retirees and pay 12k/year.

Could you clarify - is that $500 per person per month?

 

[Zig56]

Hi Zig56

I also have a Florida Blue ACA Silver plan with cost sharing. I have a household income of 24k with my brother as a dependent of mine. We are 57 and 58.

However I pay around $300 total monthly.

Wondering about the difference vs. your monthly number as our income is fairly small. Do you mind divulging what ACA income you submitted?

I use 21,000 I’m in Marion county 61 and 59.

 

[Dtail]

I use 21,000 I’m in Marion county 61 and 59.

Interesting. Thank you for your response. From memory, 21k would not have lowered our premiums to under $100 monthly. Your ages are also a little higher.
I will have to check it out further. Could be some combination of Married vs, Dependent household concept and county you are in vs. Hillsborough.

 

[Dtail]

Interesting. Thank you for your response. From memory, 21k would not have lowered our premiums to under $100 monthly. Your ages are also a little higher.
I will have to check it out further. Could be some combination of Married vs, Dependent household concept and county you are in vs. Hillsborough.

Played around with the variables. Dependent vs. Married did not matter. The age differences had only minor different results.
The main difference is due to Marion County vs. Hillsborough County for over 200 per month.

 

[Huston55]

FIREd @ 58 (DW 56). Went PT for ~6 mos, qualifying us for regular employee HC premiums during that period (<$300/mo). Was then eligible for employer’s retiree health care but, it was ~110% the cost of COBRA; so, we used COBRA (~$1,100/mo) for 15 mos. At age 60 became eligible for TriCare, which we now use until 65, when TriCare becomes secondary to Medicare. I always placed great value on the TriCare benefits, which was one of the reasons I remained in the Reserves long enough to qualify for retirement.

 

[pacergal]

Retiree health insurance until Medicare kicks in. I had to work 5 years longer than planned to meet the requirements for retiree health, but it is well worth it.

 

[Teacher Terry]

Dec, because I am the employee my coverage is less and his is more. So mine is 400 and his is 600. When I go on Medicare if I get off this insurance his will go up to 800/month so will just stay on and use it for my secondary. He is 5 years younger then me so will be stuck with high premiums for a long time. When the ACA first came out I was tempted to change to that but they don't let you back on the state insurance so decided that was a bad idea.

 

[rayinpenn]

Non-subsidized Obamacare policy. Our state has only had two choices of carriers since even before Obamacare... choices, coverage and networks have been very stable... pricing less stable but price increases much more reasonable than most other parts of the country. 2015 bronze level for two was $720.98.... 2018 same plan for two $969.12.

Hey I looked and you are in Vermont and Sarasota can I inquire as to which state you purchased Ocare?

 

[pb4uski]

Vermont... Vermont and NY are the only two states that prohibit age rating.

 

[Joylush]

In looking at the poll results I was surprised to see how many are receiving long-term gov't, military or former employer insurance.

Could one infer that is almost a pre-requisite for RE? Or is it just an added cushion to making the RE decision? FI can be a lot easier when someone else is picking up the first $20K.

I thought the same thing. I use the VA for health care needs. My other half has heavily subsidized Obamacare. We aren't married strictly because if we were we'd lose benefits.

 

[Joylush]

Hi Zig56
I also have a Florida Blue ACA Silver plan with cost sharing. I have a household income of 24k with my brother as a dependent of mine. We are 57 and 58.
However I pay around $300 total monthly.
Wondering about the difference vs. your monthly number as our income is fairly small. Do you mind divulging what ACA income you submitted?

Don't know if it's helpful but my significant other is in Pinellas and has a Blue Cross Bronze plan. He's 58 and claims $21,000 income. His premium cost is $0.

 

[Dtail]

Don't know if it's helpful but my significant other is in Pinellas and has a Blue Cross Bronze plan. He's 58 and claims $21,000 income. His premium cost is $0.

Thank you for your reference. It sounds like this would be a Bronze plan with a 12k deductible and 12k max OOP. If so, the 21k MAGI in my county would also be zero premium.
My brother could have some developing health issues, so wanted a $0 ded and $1,250 max OOP just in case.

 

[Dtail]

I thought the same thing. I use the VA for health care needs. My other half has heavily subsidized Obamacare. We aren't married strictly because if we were we'd lose benefits.

+1
Our version is DGF is on Medicare and I am on reasonably subsidized ACA.