Obamacare - more incentive to early retire?

[Bankerwithabrain]

No more reason to keep a job just for the health benefits?

 

[panhead]

Heh Heh, I was playing around with the tax credit calculator mentioned in the other thread. If this law stands, it significantly reduces what I would have to pay in Health Insurance. I budgeted for $550/month, but it could be half of that. That being said, I'm in massachusetts, and we already have some pieces of this law in place, but the subsidized insurance in the state doesn't reach to the 400% fpl, only to 300%.

 

[easysurfer]

For me, having health care in retirement was the final part of the equation. I'm years away from medicare and fortunately didn't have any major pre-existing conditions to exclude me from obtaining a private health insurance policy.

So I say, for those who wouldn't qualify for private health insurance in today's insurance world, yes, Obamacare can be the final piece of the puzzle for them to say bye-bye to w*rk.

 

[Bankerwithabrain]

Yeah- I think the plan isn't yet finalized and has a lot of clarifications required. Overall though, I do think there are lots of people that have jobs just for the health insurance.

I definitely know that I am much more worried to be unemployed with no health insurance than with.

Overall I think this leads to a lower percentage of participation in the work force.

 

[Bankerwithabrain]

For me, having health care in retirement was the final part of the equation. I'm years away from medicare and fortunately didn't have any major pre-existing conditions to exclude me from obtaining a private health insurance policy.

So I say, for those who wouldn't qualify for private health insurance in today's insurance world, yes, Obamacare can be the final piece of the puzzle for them to say bye-bye to w*rk.

I think even those who would qualify for private health insurance, the cost will be significantly lower?

 

[easysurfer]

Yeah- I think the plan isn't yet finalized and has a lot of clarifications required. Overall though, I do think there are lots of people that have jobs just for the health insurance.

I definitely know that I am much more worried to be unemployed with no health insurance than with.

Overall I think this leads to a lower percentage of participation in the work force.

But those he say, "no mas" and decide to leave, if things balance out, I'd think would be replaced. So lower participation in work force? Maybe not. But less experienced? Perhaps.

 

[easysurfer]

I think even those who would qualify for private health insurance, the cost will be significantly lower?

IMO, it's just too difficult to really know if the cost will be significantly lower or higher until we reach that point. There are so many variables involved. In the new insurance world, the business model (underwriting) of how insurance companies work is gone since pre-existing conditions would no longer be a factor.

Where I'm at, the news was saying that to have the exchanges ready (where customers can comparison shop) on time is a stretch.

Also, in several states where they assumed the law would get overturned, they didn't start the process of preparing for the law requirements. So now, they are gonna scramble to catch up.

Looks like things won't be boring for them .

 

[marko]

I was thinking the same thing, but agree on 'too early to tell'.

If the subsidies hold as planned, my HC out of pocket costs get cut in half. With 6 years to Medicare and 12 for DW, this is great!

Anyone have any insight as to whether this is TI or AGI??

People will be RE-ing...creating job opportunities as a result.

 

[MichaelB]

There is a thread here http://www.early-retirement.org/for...-affordable-care-act-61961-2.html#post1208067 already discussing these same questions.

 

[F-One]

That works for us

I'm one of many (IMHO) that have stayed at w*rk for the healthcare.

Just prior to me leaving we found out DW would not qualify because of a medication she had taken. She was on it not for the condition it is usually prescribed for, but the two insurance companies we contacted didn't care nor that she recently stopped taking it.

I'm not sure the ACA actually saves us money, I haven't run the numbers, but that wasn't our number one concern - getting and maintaining coverage, that was the issue.

Now we can start planning again.

 

[M Paquette]

While it would be nice to be able to plan years ahead based on the current law, I'm not doing that. There is far too much uncertainty due to various faction-related activities. About all I can reliably count on at this point is that I won't be subject to recission courtesy of the PPACA and a new state law (challenged in the courts by the insurance companies), and will have guaranteed renewal on January 1, 2013 as the PPACA will still be in effect then. (There isn't a possibility of repeal no matter how elections turn out until after the date the policy is renewed.)

So, I know I will very likely have coverage for the next year and a half, which is a huge relief to me. I definitely won't budget for subsidies, as those can be disappeared in budget reconciliation,a filibuster-proof process needing only a simple majority vote in the Senate. There is far too much uncertainty courtesy of the political environment for me to count on more in my retirement budgeting process.

 

[MichaelB]

This message was just posted in the PPACA thread here and applies here as well

Mod hat on:

Folks, most forum members are now looking to understand how implementation of the PPACA will affect us. There is still much to learn, and we look forward to an ongoing, positive dialog as more details become available.

Most posts in this and related threads have been thoughtful and add to this discussion. A few members, however, continue to focus and complain about aspects of the law they do not agree with, how the law favors one group unfairly or to the disadvantage of others, how it will affect upcoming elections, or just make unkind comments about the individuals and process involved in its creation. These are not acceptable forum topics (CR's re: political topics) and will lead to thread closures and moderation.

Our community is about early retirement, this topic affects us like few others and we invite everyone to participate in a positive way.

Thanks for carefully considering this before you post

 

[Bankerwithabrain]

This message was just posted in the PPACA thread here and applies here as well

I think that is kind of ridiculous... Why shouldn't we be able to comment about the effects this law change has on ER such as that it might favor leaving the work force earlier, and that it significantly benefits those that have preconditions? It also devalues that importance of staying healthy.

I think part of ER thought is that when in ER you can stay healthier due to exercise and eating healthy. This would in turn bring down your health costs. Now it doesn't matter as much. You will always be able to find an insurer at the same cost.

In addition, this law also has more effect on why people should leave the work force earlier. Taxes will obviously be higher to support it. Every dollar you earn is worth less.

 

[ziggy29]

I think that is kind of ridiculous... Why shouldn't we be able to comment about the effects this law change has on ER such as that it might favor leaving the work force earlier, and that it significantly benefits those that have preconditions? It also devalues that importance of staying healthy.

First of all, questioning moderator/administrator decisions and statements should be done through PM, not in public.

Second, the text copied over from the other thread was not directed at an individual for specific comments but as a reminder to the entire community. Of *course* the impact of PPACA on retirement decisions is entirely relevant.

I think the "devalues the importance of staying healthy" aspect invites discussions about politics and ideology and we probably don't want to go there. The other parts you mention, about retirement decision-making and how it influences the ability to retire are completely on-topic and legitimate.

 

[Animorph]

I think even those who would qualify for private health insurance, the cost will be significantly lower?

I would think individual HI costs would start looking a lot more like employer-based HI costs. Instead of being grouped in with individuals that insurance carriers cherry-picked as having no pre-existing conditions, you will be grouped in with everyone who applies for HI. I assume that will include everyone with enough heath costs to make HI look like a good deal.

Of course you will have a choice of HI features and deductibles, so you might pay less than an employer plan if you choose less coverage. And subsidies can help with the final cost.

Hopefully if I sign up for an inexpensive individual plan in 2013 it would be grandfathered so that I could stay with a healthier lower-cost group. Not sure what provisions are made for that.

 

[Buckeye]

I'm one of many (IMHO) that have stayed at w*rk for the healthcare.

Just prior to me leaving we found out DW would not qualify because of a medication she had taken. She was on it not for the condition it is usually prescribed for, but the two insurance companies we contacted didn't care nor that she recently stopped taking it.

I'm not sure the ACA actually saves us money, I haven't run the numbers, but that wasn't our number one concern - getting and maintaining coverage, that was the issue.

Now we can start planning again.

What a feeling of relief and freedom you must have gotten yesterday.

My sister has been unemployed and without health insurance for an extended period. Now she will be guaranteed access (and not at crazy risk pool rates) even if family has to help get her over the hump with premiums. What a relief!

 

[Birchwood]

I think most of us here, ER or just about to do it, are smart enough to figure out how to deal with it, before medicare kicks in. Unless the employer is going to take care of it, we have already made arrangement to do it ourselves.

It's the law, and the Supreme court upheld it. OK next topic?

 

[donheff]

I think anyone with significant health issues who is counting on the end of "preexisting conditions" exclusions needs to wait until after the November election. Once the Act is fully implemented in 2014 it is likely that it will stay with tweaks. But it is quite possible that it will be repealled in 2013 before it gets off the ground.

 

[eytonxav]

I think anyone with significant health issues who is counting on the end of "preexisting conditions" exclusions needs to wait until after the November election. Once the Act is fully implemented in 2014 it is likely that it will stay with tweaks. But it is quite possible that it will be repealled in 2013 before it gets off the ground.

I was a little surprised in all the glee, given that possibility.

Hopefully, it will survive with further improvements. Fix whats wrong vs throwing everything out.

 

[rescueme]

But it is quite possible that it will be repealled in 2013 before it gets off the ground.

IOW, don't count your chickens.... (makes sense to me, but what do I know) ...

 

[Mulligan]

I would think individual HI costs would start looking a lot more like employer-based HI costs. Instead of being grouped in with individuals that insurance carriers cherry-picked as having no pre-existing conditions, you will be grouped in with everyone who applies for HI. I assume that will include everyone with enough heath costs to make HI look like a good deal.

Of course you will have a choice of HI features and deductibles, so you might pay less than an employer plan if you choose less coverage. And subsidies can help with the final cost.

Hopefully if I sign up for an inexpensive individual plan in 2013 it would be grandfathered so that I could stay with a healthier lower-cost group. Not sure what provisions are made for that.

That horse has already left the barn if your intentions were to get a grandfathered plan. That had to be done in 2010, so you are hitched to the wagon already. I bought mine back then with the purpose of being grandfathered and currently it is. After reading about the status of grandfathered plans, they may or may not stay that way partly depending on the insurance company and if it changes the policy features. I certainly would think there are many people who have the resources to retire with the exception of health care may be able to pull the plug sooner. But on the other hand, there may be some people like me who benefitted immensely from underwriting and lower premiums from it, may find premiums rising from the changes. I certainly think that underwriting is unfair for many people and am not a fan of it, but I would be less than honest if I didn't admit that I have benefitted from it quite a bit.

 

[Independent]

I got my Medicare card in the mail yesterday, so this doesn't impact me any more.

But, back when I first retired, I felt just like this:

I'm not sure the ACA actually saves us money, I haven't run the numbers, but that wasn't our number one concern - getting and maintaining coverage, that was the issue.

The exact dollar amounts were less important to me than the feeling that I wouldn't slip through some crack and find myself uninsurable.

I think most people will need to see this thing in operation for a number of years before they believe it really works. But, if it does, I can see some people feeling FI a little bit sooner.

 

[foxfirev5]

At this point I have too many unanswered questions to pull the plug. Perhaps after Jan 2014 I'll have the confidence. Even with a current retiree plan I now have more rather than fewer concerns. Anyway it's only 671 days til 5/1/14.

 

[easysurfer]

At this point I have too many unanswered questions to pull the plug. Perhaps after Jan 2014 I'll have the confidence. Even with a current retiree plan I now have more rather than fewer concerns. Anyway it's only 671 days til 5/1/14.

+1. No way would I pull the plug on anything, escpecially with a Nov election looming.

You approach to wait it out sounds very sound. Kind of like waiting out a roller coaster market until the dusts settle.

 

[Hamlet]

Yup, being sure that you will still be insurable at some rational price is key.

Retiring early in the current system leaves you taking a financial risk that can't be mitigated.

Even if you are perfectly healthy now, you are never more than a year away from being uninsurable and facing more or less unlimited medical bills.

I got my Medicare card in the mail yesterday, so this doesn't impact me any more.

But, back when I first retired, I felt just like this:



The exact dollar amounts were less important to me than the feeling that I wouldn't slip through some crack and find myself uninsurable.

I think most people will need to see this thing in operation for a number of years before they believe it really works. But, if it does, I can see some people feeling FI a little bit sooner.