Is healthcare delaying your retirement decision?

[timerfirst]

No. But, it pushed me toward my decision to do a cash purchase of my retirement home. It's a little crazy to come to terms that HI will be my greatest expense in retirement.

It looks like my retirement income will be to high to qualify for VA coverage because I didn't serve in a war zone during the Vietnam era. From what I read, eligibility is based on the prior year's income. I will have to wait a year before I re-apply.

 

[marko]

Can you clarify how paying cash works for your friend while he has a high deductible health plan? I assume this is Bronze HDHP with HSA perhaps.

Don't all payments need to be submitted to insurance even though you pay the full amount first in order to satisfy the deductible, therefore it is the insurance company amount, not the doctor office' cash amount?

I'd assume they just call him 'uninsured' and then accept the $84 payment as a cash payment. They don't even tell the insurance company that he went. It just shows how much cost the Dr incurs by taking insurance.

My own Dr stopped taking insurance and charges me a flat $95 per month fee no matter how many times I need to visit. Plus $20 for blood tests. He figures that by not taking insurance he doesn't need 2-3 or 4 people chasing the insurance companies and saves on their salaries. He now only has a receptionist and a NP.

 

[Blue Collar Guy]

to answer your question, no health care costs did not stop me from retiring, i put an imaginary high number into my budget, just like i put a big fat zero into my social security expected payout, if i spend less on health care im happy, if i get my social security ill be happy, did i mention in the last 5 minutes that i stayed at work 5 years too long? cant get those years back, if i worried about some heath care costs that are unknown and social security that im sure ill get humped out of i would have worked till i dropped dead

 

[Live And Learn]

The post above got me thinking about budgeting for HC. How do folks budget for HC? Do you budget for a worst case scenario? Do you budget for annual prems + max OOP?

My factors in deciding if I could ER included a starting WR of 3%. I needed for that to cover as much as I could think of. That meant budgeting for unsubsidized ACA and the OOP max. Last year we didn't spend the HC money, so we used the extra to buy a small boat.

 

[Aiming_4_55]

Yes, belt and suspenders for planning.

It is part of determining the budget along with existing condition concern. ACA helped pave the road to offering more people healthcare options with existing conditions which could be key for many. The cost is real as a Bronze Plan for my family of 4 in CA without existing conditions is about $850/month or $10.2k annual plus $6.3k/person or $12.6k annual deductible plus prescriptions if needed. Conservative budget, $25k - $30k per year.

From a budget standpoint, as a 48 year old considering ER with 17 years to 65 for medicare, $425k to $510k expense. While I hope to not max out family deductible every year, annual increases aren't factor in these numbers.

The $510k line item makes me pause and at least consider semi-ER options for age 50-55 in a field I enjoy or group of people I enjoy working with. It might cause OMY, but if the BS bucket or family health issues become the key factor, we can adjust our budget. Until then, I'm targeting age 50 for the rip cord, but healthcare is probably gonna change in 2 years.

In a silly way, it would be nice to have a part time job with healthcare benefits, just enough to cover annual expenses ($84k), plus the 401k contribution with catch up amount ($18k + $6k). $84k plus taxes+$18k+$6k then this looks like a full time job for many.

 

[Blue Collar Guy]

yup thats what i did

My factors in deciding if I could ER included a starting WR of 3%. I needed for that to cover as much as I could think of. That meant budgeting for unsubsidized ACA and the OOP max. Last year we didn't spend the HC money, so we used the extra to buy a small boat.

just like home repairs, i read a few articles that said estimated home repairs were 1 %-2 % of the value of the house, so every year if i spend less im ahead of the game, my neighbor just got an offer for 1.1 million for his house so mine is bigger and newer, so this years repairs are factored in at 22,000. i always use worse case scenario ,thats y i chose a 3 % withdrawal rate. i also stayed at my job 5 years too long so i could factor in zero soc sec , 3 % wr, heath care costs and 2 % home repairs. in my next life im going to factor in max soc sec, 5 % wr, and not fix the house, and retire the second i could

 

[ShokWaveRider]

Maybe we can all move to SoCAL when (If) they pass Single Payer? Mass is way too cold for me.

 

[1-31-18]

As 10% of participants of this forum are one percenter, I am not surprised at people's budget on medical expenses.

And 30k IS a realistic number today without subsidies.

Is that 30K per person, or per couple? Asked as I'm just coming up to speed on this issue.

 

[ShokWaveRider]

Our total Income (without SS) is only $30k.......

 

[Carpediem]

[reply deleted]

 

[littleb]

Is that 30K per person, or per couple? Asked as I'm just coming up to speed on this issue.

It depends on your age and what city or state you live in. Go to the ACA website, put in your zip code and click the area to see if you are eligible for a qualifying event like moving or loss of health coverage. Go to review plans before signing up. You can look at the ACA plans in your area which should give you a good baseline of what your premiums might be. You do not have to sign up or log into the site to do this.

We are currently paying 21,000 ACA premium annually for two people who are 57 and 62. Our annual health costs during an extremely high usage year was 4,000. Neither one of us have met our deductible in the past 10 years. However, we are very healthy and usually pay less than 1,000 year on dr. or prescriptions.

Last year our ACA premium went up 25% so we are planning on that percentage increase per year.

 

[Bir48die]

Not going to get political about this but after reading many of these posts do we all agree that there is a need for some new legislation on this? Between some markets losing all of their options and many costs doubling over two years I see this as unsustainable.

 

[littleb]

Not going to get political about this but after reading many of these posts do we all agree that there is a need for some new legislation on this? Between some markets losing all of their options and many costs doubling over two years I see this as unsustainable.

Yes, I agree.

 

[Blue Collar Guy]

it was doomed before it started

Not going to get political about this but after reading many of these posts do we all agree that there is a need for some new legislation on this? Between some markets losing all of their options and many costs doubling over two years I see this as unsustainable.

1.6K

Senate Finance Committee Chairman Max Baucus (D-Mont.), one of the chief authors of the healthcare law, suggested Tuesday he did not read the entire piece of legislation.

Speaking at a forum in his home state, Baucus and Health and Human Services Secretary Kathleen Sebelius were asked by an audience member if they had read the whole bill and “if not, that is the most despicable, irresponsible thing.”

“I don’t think you want me to waste my time to read every page of the healthcare bill,” Baucus said, according to the Flathead Beacon. “You know why? It’s statutory language. ... We hire experts.”

 

[W2R]

Yes, there was no such thing as the ACA when I retired. Individual policies were through the roof, but still I would have retired except that costs were spiraling upwards and the Great Unknown is a fearsome thing to face. So, I waited another 2 years until I qualified for employee/retiree insurance.

And our thanks to the many members who have bent over backwards to keep this thread from going too political. Your efforts are noted and appreciated. We hope we can keep the thread open.

 

[ShokWaveRider]

Mine Went down from $345pm to $145pm for DW & Myself in 2017 (After Subsidies and cost Sharing). That is with Florida Blue (FLA Obviously), We did have to change GPs but all the specialists were on the plan. we see a GP once per year so it was no biggie. They are really the ONLY provider in Florida BUT they have a Gazzillion plans available which is like having loads of providers.

 

[Fermion]

We are currently paying 21,000 ACA premium annually for two people who are 57 and 62. Our annual health costs during an extremely high usage year was 4,000. Neither one of us have met our deductible in the past 10 years. However, we are very healthy and usually pay less than 1,000 year on dr. or prescriptions.

Last year our ACA premium went up 25% so we are planning on that percentage increase per year.

So you are planning on a compounded 25% increase per year?

I know you will be medicare eligible, but if someone younger used your increase, in just 10 years they would be paying $200,000 a year in premium. Realistic?

 

[kaudrey]

Yes, in a way. I am a Fed, and I can't keep my post-retirement health bennies if I retire before I am eligible for an immediate pension at my minimum retirement age, which in my case is 56 years and 10 months of age (about 9 years from now).


I will have 30 years in gov't at age 52, which gives me a full pension at 57, but not the ability to keep health. So, I'll wait until 56 years and 10 months. The uncertainty of having to pay on my own from 52 until Medicare is too risky for me.

 

[Teacher Terry]

I am surprised that at 30 years of service you can't retire at any age with pension and healthcare. That sucks!

 

[dixonge]

1.6K

Senate Finance Committee Chairman Max Baucus (D-Mont.), one of the chief authors of the healthcare law, suggested Tuesday he did not read the entire piece of legislation.

Speaking at a forum in his home state, Baucus and Health and Human Services Secretary Kathleen Sebelius were asked by an audience member if they had read the whole bill and “if not, that is the most despicable, irresponsible thing.”

“I don’t think you want me to waste my time to read every page of the healthcare bill,” Baucus said, according to the Flathead Beacon. “You know why? It’s statutory language. ... We hire experts.”

Well he didn't have to, as he had an industry insider to do the writing (and thinking?) for him

https://www.theguardian.com/commentisfree/2012/dec/05/obamacare-fowler-lobbyist-industry1

 

[MichaelB]

Let's keep politics out of the discussion, please.

 

[dixonge]

My plan is to move to France and continue to work there in some capacity (temp jobs, teaching English, B&B, etc.).

Our plan is to just retire to Mexico

What Does the Mexican Healthcare System Have to Do with Cooking Videos?Ventanas Mexico

 

[dixonge]

Let's keep politics out of the discussion, please.

Define 'politics' -

If by 'politics' you mean 'any mention whatsoever of elected representatives' then ok, I guess I crossed a line there.

But seriously, talking about how politicians are corrupt and how money influences it all - is that really controversial to anyone at all? It's pretty much across the board and not partisan at all.

Just trying to clarify, not stir the pot, honest...

 

[MichaelB]

Define 'politics' -

This is a difficult topic to discuss for all of us. It has been a highly charged, partisan issue for quite a few years. That is why, when the discussion covers actual legislative efforts, there have been multiple requests to keep any talk of legislation focused on bills under serious consideration, their specifics and impact.

Personally, I would consider "unhelpful politics" (as it related to this discussion) any comment that attempts to portray, illustrate or highlight a particular partisan view, individual or position in a way that has no bearing on the specifics of the legislation. By unhelpful, I mean it usually is the beginning of the end.

 

[youbet]

I think health care just give people excuse to delay retirement. Without this, they just find other excuses.

+1

Yes, health care is expensive.

But....... Other items in retirement budgets are sometimes expensive too. At "geezer breakfast" last Friday morning, one of my buddies still working part time for HI said that the cost of HI was keeping him from fully retiring. He jotted the big hitter budget items on a napkin for me. I noticed $15k for HI and also $15k for travel. I asked him why not just retire and stay home until Medicare kicks in? He responded that he just couldn't bring himself to spend $15k of his own money on HI. But travel, he felt good about spending that and he would gladly.

Is it always the cost of HI that keeps folks from retirement? Or is it also the fact that people don't like spending on HI even if they could by simply giving up some discretionary expense such as travel?