2013 expenses

[aja8888]

Goodlife: How do you get away with only $308 for medical for a year? What about insurance, prescriptions, etc?

 

[Mulligan]

Aja, I have done better than that the past 4 years in retirement. Accounting for HSA tax deduction, I actually have made a small profit on medical each year, and I receive no employer benefits. Obamacare is going bust me in the wallet come January 1 though and eliminate that "problem" unless my insurance carrier decides to extend underwritten policies for another year.


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[aja8888]

Aja, I have done better than that the past 4 years in retirement. Accounting for HSA tax deduction, I actually have made a small profit on medical each year, and I receive no employer benefits. Obamacare is going bust me in the wallet come January 1 though and eliminate that "problem" unless my insurance carrier decides to extend underwritten policies for another year.


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It's just surprising to me to see what some folks have experienced with healthcare/insurance costs. Granted, some folks are young with no illnesses.

For us, both on Medicare with Plan F supplemental insurance, and Part D drug plans, we spend over $8K before either of us takes an aspirin.

 

[Mulligan]

It's just surprising to me to see what some folks have experienced with healthcare/insurance costs. Granted, some folks are young with no illnesses.

For us, both on Medicare with Plan F supplemental insurance, and Part D drug plans, we spend over $8K before either of us takes an aspirin.

I'm almost 50 and on no meds. I guess I'm healthy, or at least I feel that way. I'm sure if I let them poke around on me long enough, they could find something wrong and then put me on some meds....but I am not going to give anyone that chance yet.


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[GoodLife]

Goodlife: How do you get away with only $308 for medical for a year? What about insurance, prescriptions, etc?

I am on HSA plan via my employer, and the employer is covering my premiums for it (they have special "points" that can be used for medical and other benefits I select). I am not on any regular meds and a couple of doctor visits + associated prescription cost me that much in 2013...

If I were to include medical, dental, misc disability and other insurances, and other employer-provided benefits, that would add ~$3650/year but I then also get ~$3840 in these "points" for income. If I were not working for this employer, who knows what kind of insurances I'd be buying and for how much...

For us, both on Medicare with Plan F supplemental insurance, and Part D drug plans, we spend over $8K before either of us takes an aspirin.

Regarding folks on Medicare by the way, a close relative of mine in same area is spending ~$600 yearly on medical costs by using Medicate Advantage plan which includes drug plan. $0 in premiums. Pretty low costs for doctor visits. They are on 12 regular medications, most of which are generics.

 

[aja8888]

Regarding folks on Medicare by the way, a close relative of mine in same area is spending ~$600 yearly on medical costs by using Medicate Advantage plan which includes drug plan. $0 in premiums. Pretty low costs for doctor visits. They are on 12 regular medications, most of which are generics.

Medicare Advantage plans are essentially HMO's and are OK if you are healthy. The problems with them stem from the choice of doctors as you may not be able to choose one(s) you want. Also, some Advantage organizations went under in recent years as gov funding is shrinking. Plus, certain meds are not available under their plans.

My DW has a very serious lung condition and other ailments and we elected to choose her doctors, etc. I had a total hip replacement by the best surgeon in the West and cost to me was $0.

While Advantage plans vary from area to area (some as quite good, but none in Texas), many retirees elect to go with pricey supplemental plans for the long run, even though the premiums are high. It's a matter of you get what you pay for.

 

[GoodLife]

Medicare Advantage plans are essentially HMO's and are OK if you are healthy. The problems with them stem from the choice of doctors as you may not be able to choose one(s) you want. [...] It's a matter of you get what you pay for.

I understand. The relative I mentioned has a number of chronic conditions and is on 12 meds as I said - far from being healthy. Also, the plan has max out of pocket of ~4k per year (which does NOT include drugs I believe but should involve any doctor charges, hospital stays, etc). In any case, I understand your point about choosing doctors and other things you mentioned. I guess you've got to pay for that choice if it's important enough to you... The only thing I did not get is why you are surprised below ;-)

It's just surprising to me to see what some folks have experienced with healthcare/insurance costs [...] we spend over $8K before either of us takes an aspirin.

 

[explanade]

Hmm, I just tallied up my expenses through the first 4 months of the year, came to about $20k. However, over half of it was for federal and state income taxes and the first quarter tax installment.

No medical, since I'm not FIRE'd yet.

Will have property taxes to pay, about $5000-5500 and have some travel planned.

Spent about $63.5k last year but almost $17k were for non-recurring things, like remodeling costs, new computer, DVR, etc.

That would be more or less in line with 2012, which was under $48k, though I'd need to add about $5-10k each year for income taxes, not from earned income but from dividends and cap gains distributions.

Both years, travel spending was $11k or more.

This is in the Bay Area.

 

[Spanky]

2013 total: $11,336 / year

Incredible!