I'm freaking out over health insurance

[Winemaker]

My 34 year original employer sold the company to an competitor who did not offer retiree health care unless you had 10 years of service, I would have been 66 minimum. DW's employer required 30 years service for that school district, despite having 10 years service prior in other districts, she would have to be 69 minimum. We now pay $18,600+, and I thank God we saved and are prepared for it.

 

[Huston55]

Even Walmart offers benefits. And they do hire people our age. Hawaii requires employers to offer health insurance to any employee working over 20 hours/week. And Massachusetts has its state health plan. California is considering single payer. It would be incredibly disruptive to have to move to get health insurance. I feel your pain, and I panicked a month ago myself. One of us will probably try to find a job if we need to. It's just about unaffordable now, and we only go in for our physical exams.

Good if you live in these states. And, if you don't, a part time job could be a stopgap. Heck, working at Whole [-]Paycheck[/-] Foods, Trader Joe's or REI 20hrs/wk might even save me money.

Companies That Give Health Care to Part-Time Employees - ABC News

 

[FIREd]

I am somewhat concerned. I am on a ACA plan until the end of the year. We only have one provider left for individual health insurance in our area (BCBS). If this provider pulls out of the individual market in 2018, then this area can kiss goodbye to entrepreneurs and early retirees - which won't bode well for the local economy. So I have good hope that a solution will be found.

However hoping is not planning and we are contemplating several contingency plans (getting a job with benefits (groan), moving to another zip code/city/state, moving overseas - in no particular order). But I told DW that we need to become more nimble if we want to stay retired. Just as one can choose a locale with a competitive tax burden, hopefully one will be able to choose a locale with a competitive healthcare market.

 

[tinlizzy]

UPS provides medical, dental, vision and free prescriptions for part time employees AND their family! Healthcare at UPS does vary slightly across the country but it's a essentially free 80/20 plan thru BCBS or Aetna. It pays 100% of hospitalizations and free 90 day generic prescriptions (mail order or CVS). The avg part timer works only 3 hrs a day for peanuts doing manual labor. If you can do the job they'll hire you at any age.

 

[FireBug]

I'm beginning to think that the term Health-Care is an oxymoron.

 

[bmcgonig]

UPS provides medical, dental, vision and free prescriptions for part time employees AND their family! Healthcare at UPS does vary slightly across the country but it's a essentially free 80/20 plan thru BCBS or Aetna. It pays 100% of hospitalizations and free 90 day generic prescriptions (mail order or CVS). The avg part timer works only 3 hrs a day for peanuts doing manual labor. If you can do the job they'll hire you at any age.

I worked that job when I was in college. It was the hardest job I ever worked. It was only 4 hours a night but they worked you really hard. They basically force 8 hours work into 4 and pay you for 4. Literally sweat pouring off every one of us loading packages onto trucks. I quit after 28 days knowing that there HAD to be an easier job out there.

 

[brucethebroker]

Like others here, I'd also say no one really knows at this point what is going to happen with ACA so really don't try to make sense of the tug of war. That would drive me nuts.

+1. Why worry about something that may or may not happen? Congress will eventually have to deal with the cost part, or lose the votes of boomers.

 

[EastWest Gal]

Good if you live in these states. And, if you don't, a part time job could be a stopgap. Heck, working at Whole [-]Paycheck[/-] Foods, Trader Joe's or REI 20hrs/wk might even save me money.



Companies That Give Health Care to Part-Time Employees - ABC News

There's a Whole Foods on the big island in Hawaii, I wonder if they're hiring?[emoji16]

 

[career2.0]

I un-retired - Got a job with some benefits. It's been quite the transition into then back out of retirement. I'm starting a 3 year contract term and will reassess in 3 more years.

I was bored and fairly lonely in retirement, being a young ( mid 40's) early retiree. No one is around my age during the day. Was not so much about needing to go back for health insurance but that's a nice add-on to the social aspects that I was seeking.

Also have two (early 20's) kids , not close to being launched yet, and the insurance coverage option is important for their benefit.

I would also not worry about what we can not control. It will make you crazy.

 

[donheff]

And if you really want to see how much your employer has been paying for that health insurance, it should be on your W-2, in box 12, with the code DD. Theoretically, if they weren't paying that, they could give you an equivalent raise.

It has been a long time since I looked at a W-2 )). But my memory is that number reflects your premiums which are tax deductible but those reflect on average about 30% of total premiums. The employer is picking up the other 70% which are really coming out of our pockets in a hidden manner and are a stealth deduction for HI for those who are getting employment based coverage.

 

[donheff]

One pressure that may help insure that cost sharing subsidies remained funded and the marketplace is not pushed to collapse is that members of Congress and their top staff get their insurance thru the ACA marketplace. If that marketplace collapses, they could simply change the law to put themselves back in the Federal employee program but the pressure to avoid that public step would be immense.

 

[zinger1457]

I worked that job when I was in college. It was the hardest job I ever worked. It was only 4 hours a night but they worked you really hard. They basically force 8 hours work into 4 and pay you for 4. Literally sweat pouring off every one of us loading packages onto trucks. I quit after 28 days knowing that there HAD to be an easier job out there.

Same here, worked for UPS for awhile, the pay was good ($8/hr back in 1978) for part time work while in college but definitely not the kind of work for someone in or close to retirement.

 

[MichaelB]

It has been a long time since I looked at a W-2 )). But my memory is that number reflects your premiums which are tax deductible but those reflect on average about 30% of total premiums. The employer is picking up the other 70% which are really coming out of our pockets in a hidden manner and are a stealth deduction for HI for those who are getting employment based coverage.

My understanding is this number is the total cost of coverage and includes the amounts paid by both employer and employee.

 

[zinger1457]

For the budget I will probably take the highest estimate and double to be extremely safe as we are late 40's now.

Not sure how long the increases can be sustained but my premiums are now close to 5X what they were 6 years ago.

 

[donheff]

My understanding is this number is the total cost of coverage and includes the amounts paid by both employer and employee.

I have a similar box on my 1099-R (annuity statement) that is labeled "Employee Contributions." It definitely reflects the premiums that are deducted from my pension (my direct cost). The government pays another 70% that is not reflected on tax forms. Not the same for W-2s?

Edit: You are right. Code DD shows "cost of employer sponsored health care." From the IRS:
"The Affordable Care Act requires employers to report the cost of coverage under an employer-sponsored group health plan. Reporting the cost of health care coverage on the Form W-2 does not mean that the coverage is taxable. The value of the employer’s excludable contribution to health coverage continues to be excludable from an employee's income, and it is not taxable. This reporting is for informational purposes only and will provide employees useful and comparable consumer information on the cost of their health care coverage."

So this info bonus is provided by the ACA. that's why I didn't remember it. My W-2s were all pre-ACA.

 

[MichaelB]

I have a similar box on my 1099-R (annuity statement) that is labeled "Employee Contributions." It definitely reflects the premiums that are deducted from my pension (my direct cost). The government pays another 70% that is not reflected on tax forms. Not the same for W-2s?

From the horse's mouth

In general, the amount reported should include both the portion paid by the employer and the portion paid by the employee. See the chart, below, and the questions and answers for more information.

https://www.irs.gov/affordable-care-act/form-w-2-reporting-of-employer-sponsored-health-coverage

 

[ShokWaveRider]

At least I am not alone. I think it is so sad that we even have to talk (worry) about the subject. Being a British and Canadian Citizen we were spoilt enjoying good affordable healthcare, it was very good for us and we had no complaints at all. When we pledged allegiance and became US Citizens too, we NEVER thought this would even be a concern.

 

[scrabbler1]

I ERed in late 2008, just before that year's election. While I had lined up an affordable individual plan here in New York (hardly a friendly state for those in that market back then), I didn't count on its premiums rising 50% in the next 2 years.


But the ACA had been passed, thankfully, in those 2 years, so I knew all I had to do was hang in there until the end of 2013 when the exchanges would come into being. In the meantime, I switched to an inexpensive, bare-bones, hospital-only policy which left me underinsured. And I had to stay healthy from mid-2011 (when I switched policies) through the end of 2013.


I stayed healthy and gladly bought an exchange ACA Silver plan for 2014, ending my 2+ years of being underinsured. And the premiums were lower than what I was paying in 2009. When I got sick in 2015, I had a decent policy which kept me from being financially hurt and got me well again.


I am not too concerned about the premium subsidy because I qualify for only a small one, only a few hundred dollars per year. And here in New York, while the premiums are pretty high compared to the rest of the country, the individual market is quite stable with many insurers to pick from throughout the state.


With my being a few days short of turning 54, I am 11 years and a few days short of going on Medicare. But I have made it through 8 years of ER so far, having had the good fortune of getting sick when I had good health insurance.

 

[Carpediem]

My understanding is this number is the total cost of coverage and includes the amounts paid by both employer and employee.

Just looked at my 2016 W2 again and box DD shows $16,659.84. I can't believe I'm saying this but right now $1388 per month doesn't sound too bad for COBRA. Ugh...

 

[ivinsfan]

Just looked at my 2016 W2 again and box DD shows $16,659.84. I can't believe I'm saying this but right now $1388 per month doesn't sound too bad for COBRA. Ugh...

That number would have been for 2016....you probably should round that up to about 20K for 17 and who know what for 18...

 

[MichaelB]

No need to speculate on the politics ...

 

[SomedaySoon]

Well if the only requirement for Medicaid is income in PA (no asset test), then I would think I could manipulate my income to legally qualify for it and use it as a backstop anyway if something bad came up, but I would have to research it. I have enough in savings/investments that I could spend down without incurring taxable gains, at least for a year or two until I could come up with something better.....

 

[Carpediem]

Boobers are all on or very near Medicare. Congress will simply stroke one group and eff the other. Which group do you think will get effed?

Hahaha....so much could be said about this but I won't.

 

[AllDone]

I stayed healthy and gladly bought an exchange ACA Silver plan for 2014, ending my 2+ years of being underinsured. And the premiums were lower than what I was paying in 2009. When I got sick in 2015, I had a decent policy which kept me from being financially hurt and got me well again.

Our unsubsidized premiums are still lower than our 2013 COBRA payments! Last year our income was low enough that I got to deduct part of our health expenses on our taxes for the first time ever. Yippee, I think....

 

[Bir48die]

So I'm always a bit confused with some of these subjects and comments. We all knew the ACA was poorly written when it was "passed". If you read up on it you could see all of the failings of the program. I love the idea of a single payer program but as we all know you have to be 65 to enjoy that benefit.

The two things I see on this forum in relation to the ACA is:

1) Those who "game" the system by pulling out of taxable accounts to lower their premiums and get subsidy's. In many cases this is done even when they have adequate assets to fully fund health care. So in essence you are misrepresenting your financial situation to get cheap health care. This of course is one of the major loopholes in this program.

2) Many complain and freak out about the cost of health care when they early retire in their 40's an early 50's. While I feel blessed that I retired at 60, it was unheard of to retire so early. So, if you have thoughts of retiring 15+ years earlier than the general public then health care costs should be the #1 expense planned on to pay out of your portfolio.

I think the increase in costs are hideous and I believe as usual the government lied when they projected the costs to insurers and the public. The whole program was based on bad information.

That being said I go off Cobra in November. I am depressed at what I have to pay for health care. I will have three years before Medicare. So what will I do? Take $5,000 more out of my portfolio to pay deductibles. It's an additional $15,000 that I didn't anticipate but it is worth it for me not to work.

If I had 20 years that I had to pay for my own health care I would go back to work. Like I said earlier, retiring in my 40's was not even considered. I pushed through the stresses like everyone else to max benefits out as much as I could.