Cost of Retiree Health Insurance from former employer?

[DayDreaming]

For those who are getting HI via a retiree medical plan from a former employer, I'm curious what your monthly cost is? Beginning next year I will be getting such a plan: for an individual, it's $808/month, $500 deductible, 20% coinsurance on most things.

Up until now I've been getting HI under the ACA for about $270/month after the subsidy. Next year I begin collecting a pension as a monthly annuity, so that same plan minus the subsidy is something over $900 with a $2,500 deductible. (I know I could take the pension as a lump sum and keep the ACA subsidy, but there are reasons I don't want to do that).

I know that comparing my HI costs to yours is pretty meaningless. I'm just curious how generous (or not) other employers are to their retirees.

 

[LRDave]

$216/month for DW & I for a BCBS Bronze plan. State retirees health plan.

 

[Mark1]

$697/month for UHC insurance for DW and myself, which represents 40% of cost (company pays other 60%, due to 25+ years of service). Retirees are pooled with working employees and cost has only increased once in past 4 years (actually we got a "Pay Holiday" in 2019 and got 3 months free, which made no sense to me(?).

 

[jimbee]

I have retiree medical insurance available from my former employer, but I won't be taking it. For 2021, they only have a high deductible plan option, a PPO option isn't available. Single monthly premium is $1161, the monthly premium for two is $2090. I don't have info on the deductible or copays.

 

[fosterscik]

$450/month/retiree for BCBS HSA eligible PPO insurance plan from our prior state employer. Will increase in cost by 3% next year.
Once we reach Medicare age it drops in price and becomes secondary with no deductibles beyond those mandated by Medicare. I've not decided whether to take this employer "supplement" or go with a G supplement. It will cost ~$30 more per month but is not age rated and includes 100% travel coverage (foreign and domestic).

 

[stepford]

Retiree medical insurance from my Megacorp is pretty reasonable: $65/mo for a High Deductible BCBS plan (1400/yr deductible, HSA eligible). This is for me individually - double it if I include a spouse.

There is a comparable low deductible BCBS plan available, but premiums for this option have been increasing quite a bit. They were only $10 more than the HD plan 5 years ago when I retired, but are now at $130/mo and climbing. Really no advantage in the low deductible plan anymore.

 

[Bamaman]

I retired at 58, and was able to purchase high quality healthcare thru MegaCorp for $450 a month. That included my wife's Medicare Medigap coverage. And thankfully I had a RHSA account that paid all until I got on Medicare.

My Medicare supplement was also purchased thru them until last year when MegaCorp divorced all retirees. Now they pay us $600 that goes against healthcare costs. Retirees were a big negative on their balance sheets so we're on our own.

I've noticed that Ford Motor Company is putting thousands of employees on Early Retirement. They're looking to payout lump sum pensions and lesser severance packages than in years past. And their generous healthcare provided to salaried workers and families (via UAW contracts) is no more.

 

[Sue J]

If we hadn't started Medicare this year the retiree insurance for DH would have been $345/mo and for the spouse it would have been $1350/mo.

Those prices were impossible for us and we used ACA from 2014-2019.

 

[MissMolly]

For me, retiree insurance is free. At the time I retired, neither one of us was of Medicare age and the cost for my husband was very high - like around $800/month as it had been for a number of years prior to my retirement. This was also prior to ACA coming into play, so he was covered under a private plan at a cost of about $300/month for several years and was grandfathered in once ACA was enacted. So he never was covered under ACA (which would have been much more expensive). Once he came to Medicare age, the cost for the PPO Medicare Advantage plan is $76/month under my retirement and mine is still free.

 

[OldShooter]

At the time DW retired (2006/58YO) her deal with megabank is that we could continue on their HI and that they would subsidize the premiums at a fixed $400/month, no future adjustments. IIRC the sticker price on the insurance was in the neighborhood of $1000/month.

The problem, we found, was that the HI pool was not all of megabank's employees. It was only the retirees who were on this special plan. So the premiums went up more than we expected year to year. Nothing to be done about this we were happy to have the HI, but it was a little bit of a planning "gotcha."

 

[pacergal]

My subsidized retiree health plan payment is no longer available to others, and I had to meet a bunch of requirements to get it. Pay approx $300 month for medical, dental, vision for both of us. It goes away when I reach Medicare age.
We will be paying more for health care when we go on medicare.

 

[jollystomper]

Megacorp retiree insurance is still cheaper tha ACA for us because (a) Megacorp provides a partial subsidy and (b) our income is too high to qualify for ACA.

Total premium for DW and I, covering medical dental, and vision, is $947/month this year. $3000 annual deductible, $8000 max out of pocket.

We just received the rates for next year, and are pleasant surprised. Monthly cost is going up only by $9/month, same levels of deductibles and max out of pocket.

 

[Gotadimple]

The problem, we found, was that the HI pool was not all of megabank's employees. It was only the retirees who were on this special plan. So the premiums went up more than we expected year to year. Nothing to be done about this we were happy to have the HI, but it was a little bit of a planning "gotcha."

You hit the nail on the head: a closed pool of members. That means higher claim expenses of this restricted group so as they age, claims increase and so do premiums.

I worked for a Blue Shield company and retired before Medicare. Retiree health care was a benefit. At age 65, they offered us a Medicare Advantage plan - and it was expensive because it was a closed pool of members, and it had low deductibles and co-pays. I switched to the version they sold to the public with higher deductibles and co-pays - saving about 30%.

- Rita

 

[Offgrid Organic Farmer]

I retired at age 42, in 2001. Our healthcare policy takes an annual enrollment fee of $300. And then we pay $12 co-pay for doctor visits and surgeries. [the co-pay is reduced to $10.80 if we pay during the office visit.]

Our healthcare is administrated by a regional corp called Martins Point.

 

[LarryMelman]

I really wish you folks would identify the companies you retired from, by name. Unless there is a forum policy against it. "Megacorp" does not convey any useful information.

 

[Offgrid Organic Farmer]

I really wish you folks would identify the companies you retired from, by name. Unless there is a forum policy against it. "Megacorp" does not convey any useful information.

Ooops, I retired from the US Navy.

I receive a monthly pension and I am 'on the hook' to any possible recalls in the future [there was such a recall this past summer of all military retirees who had worked as HM Corpsmen or Medics].

 

[jojo777]

I retired 5 years ago from a Telcom company and still have 2 children in school. If I were to take their insurance the family plan is $2400 and month. When I turn 55 I believe I would be subsidized 50%. We are so lucky that my husband has State retiree healthcare that is less than $500 and month for the family of 4. It really is the biggest item you need to consider when you retire/semi retire. I work in a municipality now 3 days a week.
The healthcare there would be more than I make. (funny / not funny) I don't know how people can do it. I could never afford to work there if I needed health insurance.

 

[ABQ2015]

Retired fed. Before I became eligible for Medicare two months ago, I had an HDHP. The cost for the coming year would be $262 a month for Self Only with the government contributing $523 for a total cost of $785. The HDHP had a deductible of $1800 for in-network, 15% co-insurance, and contributed $800 a year to my HSA. Self Plus One plans cost a little over double. The HI pool includes both federal employees and retirees and their health insurance premiums are the same. BCBS Standard Option ($350 deductible) is another one of the choices for feds and premiums are very similar to my previous HDHP.

Now that I am on Medicare Part B, I am switching to a less expensive federal retiree plan to serve as a supplemental. The cost for 2021 is $154 a month for a Self Only plan with the government contributing the balance of $462. For those who opt to take Part B, the $1600 deductible and 20% co-insurance are waived and $900 a year is placed into a medical fund. All the federal retiree health plans provide prescription drug coverage equivalent to Medicare Part D.

 

[IMATERP]

State of NC

My retirement benefits include no cost health insurance beginning at Age 60. So beginning January 1st I will be receiving the BCBS 70/30 Health Plan for FREE (for the rest of my life.). Upon being Medicare eligible - the plan becomes secondary and picks up what the State Plan doesn’t.

Ridiculously, prior to 2006, any individual who worked 5 years for the State of NC receives FREE Heath Insurance at age 60. If you were hired after 2006, you would have had to work 20 years with the State in order to receive this benefit.
Beginning in 2021, the State of NC is no longer providing new hires with any Retiree Health Insurance.

Now, if I choose to insure spouse or dependents, the cost would be $500+ per month.

I

 

[Car-Guy]

The "Megacorp" I retired from does offer a subsidy for their sponsored HI... It's $400 per person per month, at this time. That's actually almost double the cost they charged me as an active employee... Their Medicare advantage plan offering is $75 month.

The coverage is really very good but the plan administrator that the company uses to process claims really "sucks"... And that's being exceptionally kind to them... As soon as the DW turns 65 and moves to medicare I'll drop them like a hot rock!

 

[Lakedog]

Retired fed, have had GEHA HDHP for the last few years, 2021 rate will be $132.96/mo. GEHA puts $900 a year ($75/mo) into my HSA. The plan has a $1500 deductible but low out of pocket max ($5000).

I turn 65 next year so will need to decide about medicare. Since I am in good health and take no medications, I have been considering declining medicare in order to stay with the HDPD and continue contributing to the HSA -- this is allowed but I would have to decline all medicare (including Part A). I am leaning toward taking medicare and switching to the GEHA standard plan ($135.77/mo) for supplemental as that plan waves all deductibles/copays and essentially covers all costs not covered by medicare.

 

[Walt34]

Retired county employee. I pay 30% of the premium for a BCBS PPO plan, which has excellent coverage. My amount is $777/month. Before I went on Medicare office visits were $10 co-pay and prescriptions are $5, once in a blue moon $10. It is still primary for DW, and is secondary for me, it picks up where Medicare leaves off. I very rarely see a medical bill and when I do it's on the order of $10. I think I got one for $25 once. DW goes on Medicare next year and the premium stays the same, but I'll take it for the coverage we get, I'd be a fool to change. Retirees who stay in the plan are lumped in with current employees so the premiums stay flat. This year it actually went DOWN a few dollars!

I'm grandfathered in to an old plan, later hires are not eligible for the one I'm in.

 

[samm]

For those who are getting HI via a retiree medical plan from a former employer, I'm curious what your monthly cost is?

$620 for one-person high-deductible BCBS plan. I have same plan as pre-retirement but without corp. subsidy which was about $400 per month

 

[HtownRose]

Airline employee not yet eligible for retiree medical. If the current plan stays as it is now, once I've been working there 12 years & am at least age 61.5 I can "pay" for retiree medical until age 65 with 12 sick hours per month so I will make sure I have accumulated enough hours by then. (I earn 8 sick hours per month when I'm full time & 4 hours per month when part time. Haven't used any yet.)