Poll: How do you handle healthcare in retirement?

[LakeRat1]

No Insurance / Self-Pay

56 / 64 DW and I have been retired now going on 5 years. Medical Insurance got to expensive, we paid the first two years, but now we are self-pay and belong to CHM - Christian Healthcare Ministries ....... This year our monthly premium with $7350 Deductibles would have been $1950 per month...... We pay $300 per month, then another $240 annually for the Brothers Keeper Option

 

[Livefree]

Retired last year and live in Mass. Exchange policy is $568 per month for wife and I

 

[Cayman]

Retired last year and live in Mass. Exchange policy is $568 per month for wife and I

Maybe we should domicile in Mass. and save $1500/mo on HI premiums. Our hc system is a shameful mess.

 

[Tallman4123]

Former employer for now (on COBRA). Likely will switch to ACA plan in January 2019, hopefully with a bit of a subsidy.

 

[NoMoreJob]

Former employer for now (on COBRA). Likely will switch to ACA plan in January 2019, hopefully with a bit of a subsidy.

The way the subsidies work, you typically either get quite a bit or nothing. Make sure you understand the income cutoff and plan ahead to stay under it if at all possible. The 'cliff' when you reach it is as steep as it gets.

 

[pb4uski]

Retired last year and live in Mass. Exchange policy is $568 per month for wife and I

Is that subsidized or un-subsidized?

 

[mpeirce]

OTHER.

Same health insurance plan we've had since before Obamacare.

 

[jjflyman]

Maybe we should domicile in Mass. and save $1500/mo on HI premiums. Our hc system is a shameful mess.

Actually, our HC System is one of the best in the world, It's the HC *Insurance* that is in meltdown

 

[Cat-tirement]

I'm guessing you meant COBRA to fall under former employer. Doesn't actually matter for us now as we switched to an ACA plan when COBRA ran out in January. Still several years to go before Medicare.

 

[ABQ2015]

Medicare is primary for me, former employer's insurance is secondary. That is still primary for DW. Heavily subsidized by the former employer we pay 30% of the premium but it's very good coverage and I'm grateful to have it. All those midnight shifts are paying off.

My health insurance situation is similar. My HDHP is $150 a month for a Self plan. BCBS Standard would cost $250 a month. I have separate dental and vision insurance but it is not subsidized. When I reach Medicare age in 3 years, combined costs for Part B with the former employer's insurance as a supplement will increase to $400-450 a month. And I'm concerned about finding doctors who accept new Medicare patients.

 

[Livefree]

Is that subsidized or un-subsidized?

It's a subsidized Silver Plan with no deductible and $1500 Out of Pocket for each of us

 

[pb4uski]

Actually, our HC System is one of the best in the world, It's the HC *Insurance* that is in meltdown

Huh? Do you know how health insurance works? It's the opposite of what you said.... our health care system, and specifically what health care costs, is in crisis.... the rise in health insurance is only because of rises in health care costs... nothing more and nothing less.

 

[VanWinkle]

Subsidized ACA with 50 ded and 2250 OOP max silver plan.

 

[Cayman]

Actually, our HC System is one of the best in the world, It's the HC *Insurance* that is in meltdown

Huh? Do you know how health insurance works? It's the opposite of what you said.... our health care system, and specifically what health care costs, is in crisis.... the rise in health insurance is only because of rises in health care costs... nothing more and nothing less.

pb4uski has it right. Costs are outta control.
I stick by my original post that our health care system is a shameful mess.
I'm not going to get political here. It's just a shameful mess.

 

[neihn]

I will be eligible to enroll with mega-corp health group and stay with it until 65. The first 18 months will cost me around $350/month for myself (COBRA), after that $700/month (I guess mega-corp switch me to retiree group instead of employee group rate).

Oh well.

 

[marko]

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.

 

[ncbill]

Spouse's employer plan.

I doubt she will retire before becoming eligible for Medicare.

I am encouraging my kids to go career military based on their interests (doctor, pilot)

 

[Cobra9777]

We're both pre-medicare and have the same group health insurance we had while working for our former employers. We just pay more of the premium now. Mine is a HSA-eligible HDHP ($1.5K deductible & $3K OoP max). Hers is a typical silver plan. Our combined monthly premium is just under $500 (medical and vision, no dental) and has been fairly stable. When Medicare starts, we both get continued employer coverage as well, but I've yet to study those options in any detail.

 

[Physics Guy]

Unsubsidized previous employer plan - Bronze plan for $1.7k per month until the college age kids got their own plans. Basically COBRA but last as long as I am willing and able to pay. It will become subsidized at age 60.

 

[GalaxyBoy]

For now I'm on COBRA as it's cheaper than my long-term plan, which is to be added to DW's retiree plan. I have to join DW's plan at open enrollment, which happens to be only a couple of months before my COBRA runs out. Once DW goes on Medicare, I'll remain eligible for her plan as long as she purchases a MC supplement from that plan.

I haven't ruled out an ACA plan, but I'm still very uneasy about the future of these plans. I'll say no more so as to remain apolitical.

 

[NoiseBoy]

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 am not surprised by the poll results. The primary reason I joined this forum was to learn how people were funding healthcare/insurance in retirement. That was back before ACA and, if I recall correctly, back then more than 50% of the retirees here were getting it from one of the following:

• Former employer (private, gov't, military)
• Still working spouse

For everyone else it was a mix of Cobra, private pay, moving away, returning to Canada/EU etc. After the always popular "will I have enough $$" it was the next most discussed topic. At least, that's how I remember it. More active forum members or moderators may have a different opinion.

 

[Human]

I have private (non-ACA) insurance, which I pay for under my company. This is one of the reasons I continue to do a bit of consulting work.

 

[pb4uski]

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.

It wasn't a prerequisite for us... I wasn't eligible for continuation of employer coverage other than COBRA at $900/month for 2 in 2011. I planned based on that $900/month knowing that individual health insurance was cheaper but considering $10,800 a year to be part of the cost of freedom.

As it turns out, we never paid close to $900/month.... initially was ~$550/month IIRC and actually went down when Obamacare kicked in and our income was low enought to qualify us for catastrophic coverage which is very affordable in our state because of no age rating (I've since learned that in most states it is not much different than a bronze level plan)... we currently pay less than $500/month for 2 (would be $970/month for 2 for a bronze plan so substantial savings) but will be glad when we are eligible for medicare in 3 years.

 

[Walt34]

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.

It is certainly an added cushion for us. While I wouldn't say we could not retire without it, our discretionary income would be quite a bit lower if we had to pay full freight for HI. We pay a tad over $700/month + Medicare for me. And that's only 30% of the premiums. Some of the premiums and deductibles I see others posting are downright scary!

And of course at age 22 when I applied for the job I didn't give any of this a single thought.

 

[foxfirev5]

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.

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.