72T and Healthcare

[Mkling]

It's been a while since I started contemplating retiring using the 72T SEPP. My biggest concern is health insurance.

Has anyone come up with an affordable family plan medical and dental plan? To continue my current benefits would cost approx. $1,800 per month.

Anyone using medishare?

My 72t would be approx 51k. My wife is disable receiving approx. 12k. I have 2 kids in college and approx 40k in cash. No car payments and 4k in outstanding CC debt.

Thanks in advance for any info that would help me make a final decision.

Lastly, anyone use 72tprofessor.com to set their plan up?

 

[mckittri2000]

You don't have to take a full SEPP payout. You can use part of your IRA for your SEPP computations. If you can keep your AGI fairly low then you will qualify for an ACA subsidy which would help keep your health insurance costs down. It all depends on how much you require to live on. https://www.bankrate.com/calculators/retirement/72-t-distribution-calculator.aspx is another good site to figure out your SEPP.

 

[zinger1457]

Seems like a tight budget with two kids in college but as far as healthcare is concerned with ~$63K in income and a family of 4 you will qualify for an ACA subsidy. You can use the KFF calculator below to check it out, my guess is that the subsidy will cover a good portion of your premium but you'll need to budget in any deductible/OOP cost. The biggest issue is probably trying to plan for healthcare cost down the road, who knows how long ACA will remain in it's current structure.

https://www.kff.org/interactive/subsidy-calculator/

 

[GTFan]

Keep income below 400% FPL to get affordable ACA plans (ideally try to get below 250% to get the best Silver plans), and forget dental insurance because none of them are worth the money if you have decent teeth that doesn't always need a ton of work. Use a dental discount plan and pay cash instead, assuming your dentist takes them (google these, there are a ton of them - mine is Aetna Dental Access via careington).

 

[NoMoreJob]

Seems like a tight budget with two kids in college but as far as healthcare is concerned with ~$63K in income and a family of 4 you will qualify for an ACA subsidy. You can use the KFF calculator below to check it out, my guess is that the subsidy will cover a good portion of your premium but you'll need to budget in any deductible/OOP cost. The biggest issue is probably trying to plan for healthcare cost down the road, who knows how long ACA will remain in it's current structure.

https://www.kff.org/interactive/subsidy-calculator/

For 2019 the ACA MAGI limit for a family of 4 was $103,000. It'll be a bit higher for 2020. Your $63,000 number would be close to the number for a family of 2.

 

[Mkling]

Thanks

Thank you all for the information. I don't know anyone using the ACA. I'm in the dark about that. I'm not fully retiring. I will be getting another job but getting benefits with the new job isn't guaranteed.

I now have to muster the courage to do it...lol

 

[GTFan]

If you're going to ER or partial ER without bennies you need to read up on the ACA. It's really not that complicated and healthcare.gov has a lot of useful info. Use healthsherpa.com to see what plans are available for a given income in your area. The lower your income, the better your cost/plans will be.