EastWest Gal
Thinks s/he gets paid by the post
I have an idea on how to reduce my health insurance burden pre- Medicare and create a more interesting lifestyle at the same time. This is based on assuming some versionPlease find holes in this idea.
Right how DH and I have an average Silver Plan through the ACA costing us $22,740/year, no subsidies. For kicks, let’s say the new plan goes into effect in 2019. We will both be eligible for Medicare in 2024. Assume our premium jumps to 5x the minimum premium in 2019 and there is no premium decrease. Assume a 5% inflation rate per year, including next year. Assume we get ACA insurance next year but the program phases out starting in 2019. Our health insurance premiums from 2016-2024 will be the following:
2018 $22740 x 105% = $23,877
2019 $23,877 x 5/3 x105%-$8000 = $33,784
2020 $41,784 x 105% - $8000 = $35,874
2021 $43,874 x 105% - $8000 = $38,067
2022 $46,067 x 105% - $8000 = $40,371
2023 $48,371 x 105% - $8000 = $42,789
2024 $50,789 x 105% - $8000 = $43,328
Total: $228,023
I know this is a worst case scenario, but that's what we are in right now. There is no political will to reign in costs, and market forces won't work when costs are hidden behind insurance companies. Between us we have had less than 10 visits for anything other than routine health maintenance over the past 17 years. My husband is on a statin and I’m not on any meds, losing weight to my ideal weight in about a year. No big family history risk. We don’t smoke and we barely drink.
Here is the idea: In early 2019, buy a home in Mexico, either San Miguel de Allende or by Lake Chapala. Obtain a temporary visa, good up to four years (through 2023). DH moves exactly 4 years before his 65th birthday in January, I do the same in September. Move there, obtain Mexican health insurance. Also purchase Global Health Insurance for travel anywhere—this is for catastrophic problems. Snowbird back and forth, spending just over 6 months in Mexico, and the rest at home. At the end of that time, sell the Mexican home. Or if we like it better there...you get the idea.
Basically, we would use the money thrown away on these exorbitant health care premiums to buy a house, use Mexican residency to get health insurance and make us eligible for global health insurance which includes the U.S. for a fraction of the cost. We get an extra house which will appreciate over time. It seems to make sense to invest that money in real estate rather than throwing it at an insurance company.
What do you all think?
Right how DH and I have an average Silver Plan through the ACA costing us $22,740/year, no subsidies. For kicks, let’s say the new plan goes into effect in 2019. We will both be eligible for Medicare in 2024. Assume our premium jumps to 5x the minimum premium in 2019 and there is no premium decrease. Assume a 5% inflation rate per year, including next year. Assume we get ACA insurance next year but the program phases out starting in 2019. Our health insurance premiums from 2016-2024 will be the following:
2018 $22740 x 105% = $23,877
2019 $23,877 x 5/3 x105%-$8000 = $33,784
2020 $41,784 x 105% - $8000 = $35,874
2021 $43,874 x 105% - $8000 = $38,067
2022 $46,067 x 105% - $8000 = $40,371
2023 $48,371 x 105% - $8000 = $42,789
2024 $50,789 x 105% - $8000 = $43,328
Total: $228,023
I know this is a worst case scenario, but that's what we are in right now. There is no political will to reign in costs, and market forces won't work when costs are hidden behind insurance companies. Between us we have had less than 10 visits for anything other than routine health maintenance over the past 17 years. My husband is on a statin and I’m not on any meds, losing weight to my ideal weight in about a year. No big family history risk. We don’t smoke and we barely drink.
Here is the idea: In early 2019, buy a home in Mexico, either San Miguel de Allende or by Lake Chapala. Obtain a temporary visa, good up to four years (through 2023). DH moves exactly 4 years before his 65th birthday in January, I do the same in September. Move there, obtain Mexican health insurance. Also purchase Global Health Insurance for travel anywhere—this is for catastrophic problems. Snowbird back and forth, spending just over 6 months in Mexico, and the rest at home. At the end of that time, sell the Mexican home. Or if we like it better there...you get the idea.
Basically, we would use the money thrown away on these exorbitant health care premiums to buy a house, use Mexican residency to get health insurance and make us eligible for global health insurance which includes the U.S. for a fraction of the cost. We get an extra house which will appreciate over time. It seems to make sense to invest that money in real estate rather than throwing it at an insurance company.
What do you all think?