For folks getting a health care benefit in retirement....what are the details...

[maddythebeagle]

Just curious after some other discussions ....when you can start with benefits...what you pay...is it guaranteed?

Our state offers leave conversion....your accumulated leave is converted on a dollar for dollar basis to pay for health care premiums (end up paying the group rate, which helps).....

You have to have 20 years of service to qualify and can only do if you are age 55 or older (I think 50 if protected employee..game warden, etc. where you are in more danger )...Also, I believe that they give you additional leave to your account at 20, 25, and 30 years of service...not guaranteed and there has been some stir about changing the age to age 60 before you can qualify.....Seems to be enough for folks to get to age 65...starting at age 55-57...

 

[razztazz]

Retired military. Basically they provide a policy via a contractor then underwrite the policy premiums. Basically a variety of PPO options. I still pay co-pays and deductibles (which vary by selected option) up to an annual cap. VEY comprehensive. Includes pharamceuticals. They HAVE to accept me and they cannot drop me and there is no 1 or 2 million buck lifetime limit as in most policies.

Must have 20 yrs to qusalify BUT it is immediate. No waiting till age 50 or 55 etc. However... retired militart are not technically retired after 20 yrs anyway. We are still "on the books" in standby mode and this is a "cookie" of sorts.

Guranteed...? Well, everybody seems to think it is and it sure is better than buying one from a company that goes out of business but since I do not control it the Gov can vote to change or delete it at any time I suppose.

 

[HFWR]

From fuzzy memory, ours' starts at 15 yrs, increasing yearly up to a max of 30 yrs. In three years, at 25 years for me, they will pay 71% of my premium, with a cap on premiums of $11k. Of course, they can amend or cancel at any time...

 

[Eagle43]

Retired military for 25 years. When I was at MegaCorp, had an HMO, and TRICARE was secondary. Now, it's the only one I have until MEDICARE comes around. Tricare Prime is the name.

 

[VoyT]

At the moment, I can get health coverage at 55 (which is the earliest I can draw pension). I say "moment" because my employer recently limited that benefit to those 50 and older. More changes? Most likely.
I can get coverage until I'm 65. Costs? Don't know, since I'm a few years away from needing it.

 

[grumpy]

Re: For folks getting a health care benefit in retirement....what are the detail

I am retired under the federal CSRS. Uncle Sam pays 72% of my health insurance premium. I can select from among a large number of federal plans including HMO's, PPO's, etc. I have the Blue Cross Blue Shield standard plan that covers DW and me. I pay $35 for brand name drugs and $10 for generics (a 90 day supply). For Dr. visits there is a $15 copay. For most services there is a $500 family deductible per year. If I use a "preferred provider" (a large % of doctors in the D.C. area are on this list) then the plan covers 80% of the "customary & reasonable" charges for all tests & treatments. The federal dental coverage is quite skimpy so we also carry Aetna dental insurance through DW's pension system (Maryland State Teachers). This coverage for us both only costs $15 per month and pays nearly 100% of all dental expenses.

Although I have had some serious health issues over the years (cancer, major surgery) and quite a few less serious issues I had never, until I retired, had enough out of pocket medical costs to get a tax deduction. Last year I did get a deduction but only because my income in retirement is lower so the 7.5% threshold was easier to reach.

This great health coverage was a significant factor in us reaching FIRE and contributes to sleeping well at night.


Grumpy

 

[Dreamer]

Mine is the same as Grumpy's health insurance.