Poll: How do you handle healthcare in retirement?

[marko]

In looking at the poll results I was surprised to see how many are receiving long-term gov't, military or former employer insurance.

Could one infer that is almost a pre-requisite for RE? Or is it just an added cushion to making the RE decision? FI can be a lot easier when someone else is picking up the first $20K.

[ncbill]

Spouse's employer plan.

I doubt she will retire before becoming eligible for Medicare.

I am encouraging my kids to go career military based on their interests (doctor, pilot)

[Cobra9777]

We're both pre-medicare and have the same group health insurance we had while working for our former employers. We just pay more of the premium now. Mine is a HSA-eligible HDHP ($1.5K deductible & $3K OoP max). Hers is a typical silver plan. Our combined monthly premium is just under $500 (medical and vision, no dental) and has been fairly stable. When Medicare starts, we both get continued employer coverage as well, but I've yet to study those options in any detail.

[Physics Guy]

Unsubsidized previous employer plan - Bronze plan for $1.7k per month until the college age kids got their own plans. Basically COBRA but last as long as I am willing and able to pay. It will become subsidized at age 60.

[GalaxyBoy]

For now I'm on COBRA as it's cheaper than my long-term plan, which is to be added to DW's retiree plan. I have to join DW's plan at open enrollment, which happens to be only a couple of months before my COBRA runs out. Once DW goes on Medicare, I'll remain eligible for her plan as long as she purchases a MC supplement from that plan.

I haven't ruled out an ACA plan, but I'm still very uneasy about the future of these plans. I'll say no more so as to remain apolitical.

[NoiseBoy]

Quote:

Originally Posted by marko In looking at the poll results I was surprised to see how many are receiving long-term gov't, military or former employer insurance. Could one infer that is almost a pre-requisite for RE? Or is it just an added cushion to making the RE decision? FI can be a lot easier when someone else is picking up the first $20K.

I am not surprised by the poll results. The primary reason I joined this forum was to learn how people were funding healthcare/insurance in retirement. That was back before ACA and, if I recall correctly, back then more than 50% of the retirees here were getting it from one of the following:

• Former employer (private, gov't, military)
• Still working spouse

For everyone else it was a mix of Cobra, private pay, moving away, returning to Canada/EU etc. After the always popular "will I have enough $$" it was the next most discussed topic. At least, that's how I remember it. More active forum members or moderators may have a different opinion.

[Human]

I have private (non-ACA) insurance, which I pay for under my company. This is one of the reasons I continue to do a bit of consulting work.

[pb4uski]

Quote:

Originally Posted by marko In looking at the poll results I was surprised to see how many are receiving long-term gov't, military or former employer insurance. Could one infer that is almost a pre-requisite for RE? Or is it just an added cushion to making the RE decision? FI can be a lot easier when someone else is picking up the first $20K.

It wasn't a prerequisite for us... I wasn't eligible for continuation of employer coverage other than COBRA at $900/month for 2 in 2011. I planned based on that $900/month knowing that individual health insurance was cheaper but considering $10,800 a year to be part of the cost of freedom.

As it turns out, we never paid close to $900/month.... initially was ~$550/month IIRC and actually went down when Obamacare kicked in and our income was low enought to qualify us for catastrophic coverage which is very affordable in our state because of no age rating (I've since learned that in most states it is not much different than a bronze level plan)... we currently pay less than $500/month for 2 (would be $970/month for 2 for a bronze plan so substantial savings) but will be glad when we are eligible for medicare in 3 years.

[Walt34]

Quote:

Originally Posted by marko Could one infer that is almost a pre-requisite for RE? Or is it just an added cushion to making the RE decision? FI can be a lot easier when someone else is picking up the first $20K.

It is certainly an added cushion for us. While I wouldn't say we could not retire without it, our discretionary income would be quite a bit lower if we had to pay full freight for HI. We pay a tad over $700/month + Medicare for me. And that's only 30% of the premiums. Some of the premiums and deductibles I see others posting are downright scary!

And of course at age 22 when I applied for the job I didn't give any of this a single thought.

[foxfirev5]

Quote:

Originally Posted by marko In looking at the poll results I was surprised to see how many are receiving long-term gov't, military or former employer insurance. Could one infer that is almost a pre-requisite for RE? Or is it just an added cushion to making the RE decision? FI can be a lot easier when someone else is picking up the first $20K.

That category contains quite a wide range of plans. Just because it is former employer coverage does not mean that someone else is picking up the first 20k. I wish! However it did give me the ability to purchase insurance for slightly less than the unsubsidized ACA plans. This year the rates went up 30% which made the ACA rates less. But if I left the employee plan there's no going back.

While I'm sure some have little or no cost, many corporate plans are not the gravy train your post suggests. Still expensive but I am grateful I have the option.

[marko]

Quote:

Originally Posted by foxfirev5 That category contains quite a wide range of plans. Just because it is former employer coverage does not mean that someone else is picking up the first 20k. I wish! However it did give me the ability to purchase insurance for slightly less than the unsubsidized ACA plans. This year the rates went up 30% which made the ACA rates less. But if I left the employee plan there's no going back. While I'm sure some have little or no cost, many corporate plans are not the gravy train your post suggests. Still expensive but I am grateful I have the option.

I probably read more into it than is there. You know what happens when you 'assume'!!

Having been paying $20K for the past 13 years of RE I'm always astounded at folks who pay something like $500 a month for HC.

[foxfirev5]

Quote:

Originally Posted by marko I probably read more into it than is there. You know what happens when you 'assume'!! Having been paying $20K for the past 13 years of RE I'm always astounded at folks who pay something like $500 a month for HC.

Yeah, I'm not quite 20k per year but the HDHP premiums and HSA (which is dwindling fast) are getting us right in that ballpark. I was lucky enough to have invested in an old RMSA retiree medical savings plan for 15 years. Hopefully that will hold out for a few more years. I rationalize the withdrawals by thinking that wasn't my money anyway. Just a partial prepayment of premiums.

[ABQ2015]

Quote:

Originally Posted by marko In looking at the poll results I was surprised to see how many are receiving long-term gov't, military or former employer insurance. Could one infer that is almost a pre-requisite for RE? Or is it just an added cushion to making the RE decision? FI can be a lot easier when someone else is picking up the first $20K.

I graduated college and started my career late at age 30. It took until age 60 to get to full pension eligibility and become FI so I'm not a true RE. The insurance is nice but by this age I would be willing and able to pay $10-12K a year (Self only) out of pocket just to retire, especially given I am only a few years from Medicare. I do not qualify for ACA subsidies as my retirement income is taxable and above the limits.

[Scuba]

We have a pre-ACA grandfathered PPO plan. Premiums went up almost 25% this year to around $950/month for the two of us. Deductibles are $5,900 each. Expensive, but not as expensive nor as restrictive as Covered CA plans so we are hoping to keep this until Medicare. DH is 58 and I’m 57 so we have quite a few more years to go. Luckily neither of us has any chronic health conditions so although our max OOP is quite high, so far we haven’t come anywhere near it. Hoping we can keep it that way!

[akidagain2018]

When getting close to FIRE, I considered various options to cover health care. Single plan, maybe via a professional network to achieve a better rate, then ACA became an option, all of which would be estimatable and I considered the monthly/annual/lifetime cost possibilities. Then decided I could stick it out for another 8+ years at a perfectly fine job that isn't the best fit for me, making it very difficult to stay. I'll be leaving with group rate former employer coverage I plan to retain over Medicare when the time comes.

[DEC-1982]

Less than 8% participating in this poll are on Medicare?

[jimbee]

Quote:

Originally Posted by DEC-1982 Less than 8% participating in this poll are on Medicare?

This is the EARLY retirement forum.

[Dtail]

Quote:

Originally Posted by jimbee This is the EARLY retirement forum.

Plus the substitute retiree insurance percentage is fairly high.

[Teacher Terry]

Just because it came from a former employer does not mean it is cheap. We are state retirees and pay 12k/year.

[Dtail]

Quote:

Originally Posted by Teacher Terry Just because it came from a former employer does not mean it is cheap. We are state retirees and pay 12k/year.

Noted. Was just commenting on the low Medicare %, not necessarily the cost.