Is there any kind of safety net to Medicare, or do they eventually require you to pretty much bankrupt yourself before you are covered fully? I know it is something like your home, 1 car and some household items are exempt, plus about 10k in cash.
Hmm....are gold coins considered household items?...
Deductible for part A & B is almost $2K and there is no out of pocket max so it can get VERY expensive. My ACA deductible is $50 with a $900 max out of pocket. My premium was free this year and goes to $18.XX/mo next year. What you consider to be cheap I consider to be very expensive.
Do the Medigap plans provide an OOP max?
Is there any kind of safety net to Medicare, or do they eventually require you to pretty much bankrupt yourself before you are covered fully? I know it is something like your home, 1 car and some household items are exempt, plus about 10k in cash.
Hmm....are gold coins considered household items?...
Am I right in assuming that the ACA policy was a lot higher than "free" due to receiving an ACA subsidy? If so it is basically a half-truth. I know you qualified it by saying "My premium" but what is the full price of your ACA without a subsidy? Comparing an ACA premiums with Medicare premiums should be done on even grounds. IMO subsidy should be excluded. It is a separate issue.
Income tax and no accretion for future auto are biggies.Monthly:
$630 property tax
$74 home insurance
$252 gas/electric
$78 water
$217 synagogue dues
$210 life insurance
$256 disability insurance (I'm still working)
$37 sewer/municipal
$1,960 health insurance
$3,760 credit cards (paid in full every month)
----------------------------------------------------
$7,474 x 12 = $89,688/year
The credit cards encompass almost everything not itemized including many thing like auto insurance, alarm, medical copays, travel, groceries, dining out, car gas, car maintenance, internet, streaming services, etc.
There's probably another $10,000 or so not counted above like charitable giving, gifts, lawn care and snow removal, one-time expenses, and things we use cash for. So roughly 100K all in. There are some reimbursed expenses buried in there, like doing my mom's grocery shopping and picking up her prescriptions. There are also some deductible business expenses like ebay fees, shipping costs, supplies, and such. That probably shaves off $5,000 or so taking us down to the 90-95K range.
The safety net is the optional Medigap add-on. For instance, Plan G eliminates the big deductible of part A and the 20% copay (with no max OOP), only requiring meeting the annual $226 (for 2023) After that it covers everything that Medicare Part A and B. So essentially with a Plan G Medigap policy, the MOP is $226. This is why Medigap policies are virtually always purchased. Sure, there are some things not covered by Part A and B or limits. About all insurance I have ever had, had limits of coverage or things not covered. Medicare Part A and B is pretty inclusive. Part D(drugs) is separate.
With the Medigap plans you have an OOP Max = the small annual deductible of $226. The Medigap plan is taking care of the 20% Medicare Part B copay.
We had been paying full freight on ACA so this is much lower.
Deductible for part A & B is almost $2K and there is no out of pocket max so it can get VERY expensive. My ACA deductible is $50 with a $900 max out of pocket. My premium was free this year and goes to $18.XX/mo next year. What you consider to be cheap I consider to be very expensive.
I’m looking forward to Medicare as our premiums drop significantly, teeny deductible and is like being on a very broad PPO again plus out of state coverage. As you can infer we haven’t enjoyed subsidies on ACA.
I don't know how you do it!
I also have a paid off home, no pets, and a frugal wife. Some spending on live at home son.
My yearly mostly fixed costs are $44k. And I probably missed some.
$2.667 Housing insurance- Includes an extra property
$1,222 Car insurance- 3 vehicles
$12,305 Health insurance- 2 people
$2,430 Property Tax- Home plus second property
$220 Auto Plates- 3 Vehicles
$2,811 Electric
$1,200 Water, Sewer, garbage
$12,079 Credit card- Covers fuel, food, etc. 3 people eating, spending on son
$600 Internet
$600 Cellphone
$6,000 Taxes
$44,001 TOTAL
Back to ACA and Medicare, it is easier to get ACA subsidy than Medicare subsidy if there is such a thing. Does the latter exist at all, or is there only Medicaid?.
Yes, we do those things too. I was just answering the question of where people spend their money. My breakdown was our routine, day to day spending. There are numerous things not listed there. We put on a new roof this year. My wife just got a new car 2 weeks ago. She's in the hospital right now and we'll owe a few thousand for that. But those sorts of things aren't part of our monthly budget as they are one-time events. We won't need another roof for 25 years. She won't need another car (hopefully) for 10-12 years. We have savings for those sorts of things. I'm also still funding my 401k and other savings.Income tax and no accretion for future auto are biggies.
True, considering that ACA without subsidy is expensive even when compared to my pre-ACA private insurance. It did not make sense until I realized that my pre-ACA insurance had a lifetime coverage limit of $1 million dollar, while ACA coverage had no limit.
Back to ACA and Medicare, it is easier to get ACA subsidy than Medicare subsidy if there is such a thing. Does the latter exist at all, or is there only Medicaid?
Anyway, I am glad I am on Medicare now. It's cheap for me, but I understand how some people may struggle to pay for it.
Yes, most people on Medicare have subsidized premiums. As their income increases, the subsidy is systematically reduced via IRMAA.
Yes, most people on Medicare have subsidized premiums. As their income increases, the subsidy is systematically reduced via IRMAA.
Well I learned something new here again... I didn't know that... Actually I'm a little surprised but I guess I never thought about it that much.Yes, most people on Medicare have subsidized premiums..
I guess that's one way to look at it. I think of it as most people have the regular price while those with exceptionally high incomes pay an additional premium. I think those with lower incomes should get reduced price less than half the regular price. The current regular price is too high for millions of people.
Those on Medicaid get Medicare free.
Do the Medigap plans provide an OOP max?
Those on Medicaid get Medicare free.
The theoretical financial risk with Medicare is prescription drug.
Even with supplemental drug insurance your risk is uncapped.
Catastrophic coverage (from Medicare)
Once you've spent $7,050 out-of-pocket in 2022 ($7,400 in 2023), you're out of the coverage gap. Once you get out of the coverage gap (Medicare prescription drug coverage), you automatically get "catastrophic coverage." It assures you only pay a small coinsurance percentage or copayment for covered drugs for the rest of the year.
If memory serves, the "small coinsurance percentage" is 20%. So in theory you have "unlimited" risk. In practice, not so much…
Yes, most people on Medicare have subsidized premiums. As their income increases, the subsidy is systematically reduced via IRMAA.
It is true that Medicare is dirt-cheap compared to private insurance, such as paid by corporations for their workers.
But it is not all subsidy, considering that workers "prepay" for this during their lifetime. Many don't live to 65 to get any benefit.
The big issue I think is that once you turn 65, Medicaid goes from being income proven to being asset proven (I think). It is some really low figure like $10,000 in total financial assets other than home and 1 car and grave plot!
Before 65 you can have $10 million and be on medicaid.
Yeah, there really should be something in between those extremes.