How long do we pay ObamaCare...is Medicare going to be there?

[NoOneGetsIt]

We are sittin pretty with money--but do not understand the healthcare world. If we leave the workforce and get SS and have some income from dividends. since all of this gets calculated in MAGI we'll be paying pretty big for healthcare. Will we be paying forever or at 65 or so does something change? Like is medicare going to be there anymore or should we plan to just keep payin?

 

[Senator]

Healthcare will always be there. It may be in a different form, but it will be there. Guaranteed.

 

[aja8888]

Medicare is there at 65. It's the best deal these days for old folks (65 on up).

 

[bingybear]

We are sittin pretty with money--but do not understand the healthcare world. If we leave the workforce and get SS and have some income from dividends. since all of this gets calculated in MAGI we'll be paying pretty big for healthcare. Will we be paying forever or at 65 or so does something change? Like is medicare going to be there anymore or should we plan to just keep payin?

I can't guess the future of medicare. But medicare is not completely free. Part B requires a monthly fee which is means tested. There are also a variety of add on coverage to improve the plans. Being 54 I'm not overly concerned with the exact details since I expect some change by the time I get to choose.
Be happy that you have enough to pay the extra.... you could have a lot less, and to be honest you will likely still be having greatly subsidized insurance during the medicare years.

 

[pb4uski]

We are sittin pretty with money--but do not understand the healthcare world. If we leave the workforce and get SS and have some income from dividends. since all of this gets calculated in MAGI we'll be paying pretty big for healthcare. Will we be paying forever or at 65 or so does something change? Like is medicare going to be there anymore or should we plan to just keep payin?

Obamacare is only until Medicare kicks in when you turn 65.

There are threads on Medicare costs but my Mom's Medicare costs (Part B, Part D and Medigap) run about $4,500 a year for one person and that covers everything.

Have you checked out healthsherpa.com or your state exchange to see what your pre-Medicare health insurance costs will be? Ours have been much lower than my COBRA albeit for a plan with higher deductibles but luckily we are both healthy and haven't ever got close to meeting the deductibles.

 

[AllDone]

If you are asking about whether people think that Medicare will be eliminated or "voucherized" or somesuch, then, no, I don't think so. It would be a huge political lift requiring that one party control the WH, the House, and have 60 Senate seats. Threatening to end Medicare is still very unpopular with the voters in both parties and if the anti-MC party did succeed in passing a law, they would take a royal beating at the next election.

The last time the traditionally anti-MC party was in that position, they tacked on more benefits to MC. Their voters are older and beneficiaries of MC.

Starving MC of funds might be a more politically achievable goal, similar to what's happening with SSDI, but there is a large and organized coalition to fight for MC that disabilty doesn't have.

 

[rodi]

Please stay on the topic, as it relates to early retirement, without delving into partisan politics.

 

[Bestwifeever]

I can't guess the future of medicare. But medicare is not completely free. Part B requires a monthly fee which is means tested. There are also a variety of add on coverage to improve the plans.

+1. And I reminded myself too when I applied for Medicare this year that the FICA deduction from our paychecks includes a payment into Medicare--currently a total of 2.9 percent of gross income combined of both employee and employer, no income cap, so we have been directly paying into it for a long time.

 

[John Galt III]

For those of us with good Obamacare deals (heavily subsidized), Medicare will be a lot more expensive. And no, you cannot stay on Obamacare once you are eligible for Medicare.

 

[jim584672]

In my area monthly Medicare...
Part B $104.90, Part D $16 to $41, Medigap "N" plan from $179 to $355

Numbers are higher with higher income.

 

[tomz]

There are a lot of decent medicare advantage plans that only require the part B payment. In my case, Medicare will be less expensive than the ACA plan I have now with similar out of pocket and copays. Your mileage may vary.

 

[aaronc879]

For those of us with good Obamacare deals (heavily subsidized), Medicare will be a lot more expensive. And no, you cannot stay on Obamacare once you are eligible for Medicare.

Being only 36 years old, I haven't really looked into Medicare before. I thought it was less expensive than what i'm seeing on this thread. I'm shocked there's not a reduced cost for lower income people. If your only income is $900/mo from SS how are you supposed to be able to afford to pay so much for Medicare? Even $120/mo would be a lot and that seems like the minimum. Then there are deductibles that need to be paid on top of that? Seems like it should be based on income.

 

[jim584672]

Medicare Savings Program (MSP) and Social Security "Extra Help" for drug expenses is available for low income people. However most will make too much and not qualify for these programs. Some states have asset tests as well for MSP.

 

[John Galt III]

Being only 36 years old, I haven't really looked into Medicare before. I thought it was less expensive than what i'm seeing on this thread. I'm shocked there's not a reduced cost for lower income people. If your only income is $900/mo from SS how are you supposed to be able to afford to pay so much for Medicare? Even $120/mo would be a lot and that seems like the minimum. Then there are deductibles that need to be paid on top of that? Seems like it should be based on income.

Anecdotal info : My parents are both on Medicare. Mom went into the hospital, via ER, got admitted, after symptoms of stroke. She had all sorts of tests, lots of equipment hooked up to her, lots of doctors dropping by. She was in for 3 days, I think. She never got a bill for it! OK, great. Then my dad broke his hip, went to ER same hospital, got hip replacement. The hospital wanted him to stay there for 3 weeks. Medicare only pays for a certain amount of days, then my parents had to pay some portion (all?) of the bill. Then he had to go to rehab, and again, Medicare only paid up to x number of days there, no matter what the doctor says is needed. So they are having to pay a lot for the broken hip, but nothing for the stroke symptoms. Length of time in the hospital is the obvious difference here. Oh, and due to having a catheter in, with which he was able to walk with someone attending, my dad was required to take an ambulance from the hospital to the rehab (which was 1 minute away, and visible from the hospital). The bill for that was $750. Medicare paid $500 of it (your tax dollars at work!) and my parents were billed the other $250. There are even more gouging episodes I could relate about this, but it's just too depressing. They would have had to disobey the doctors' orders and check out of the hospital early to avoid being billed. I suppose the same things can happen with regular insurance too.

 

[jim584672]

Anecdotal info : My parents are both on Medicare. Mom went into the hospital, via ER, got admitted, after symptoms of stroke. She had all sorts of tests, lots of equipment hooked up to her, lots of doctors dropping by. She was in for 3 days, I think. She never got a bill for it! OK, great. Then my dad broke his hip, went to ER same hospital, got hip replacement. The hospital wanted him to stay there for 3 weeks. Medicare only pays for a certain amount of days, then my parents had to pay some portion (all?) of the bill. Then he had to go to rehab, and again, Medicare only paid up to x number of days there, no matter what the doctor says is needed. So they are having to pay a lot for the broken hip, but nothing for the stroke symptoms. Length of time in the hospital is the obvious difference here. Oh, and due to having a catheter in, with which he was able to walk with someone attending, my dad was required to take an ambulance from the hospital to the rehab (which was 1 minute away, and visible from the hospital). The bill for that was $750. Medicare paid $500 of it (your tax dollars at work!) and my parents were billed the other $250. There are even more gouging episodes I could relate about this, but it's just too depressing. They would have had to disobey the doctors' orders and check out of the hospital early to avoid being billed. I suppose the same things can happen with regular insurance too.

Wouldn't Medigap insurance pay for this?

 

[aaronc879]

Wouldn't Medigap insurance pay for this?

Most retirees I know couldn't afford Medigap. Maybe part B ans D(maybe not) but not Medigap. That's expensive.

 

[jim584672]

MAGI (18-64 yo) expanded Medicaid does not consider assets. When turning 65+ income and resources ARE considered. If you qualify for Medicaid they will pay for the premiums and co-pays of Medicare. Most states consider assets for the 65+ group for the Medicare Savings Program (Medicaid pays the Medicare premiums).

 

[John Galt III]

Wouldn't Medigap insurance pay for this?

They have Medicare Advantage though United Healthcare in NJ. Don't know if that is considered a medigap situation. I suppose United Healthcare did not want to pay much of the uncovered expenses.

 

[jim584672]

Medigap does not apply to Medicare Advantage plans so that clears it up.

 

[Neill]

How long do we pay ObamaCare

I have been paying ObamaCare since 2013. 3.8% on my dividends and capital gains + 0.9% extra on some of my income. I quit working a few weeks ago to stop paying it. So just retire .

 

[Mulligan]

Most retirees I know couldn't afford Medigap. Maybe part B ans D(maybe not) but not Medigap. That's expensive.

I am on plan to stay healthy until 65 and hope that works out as I have a very skimpy plan. Once I get to 65 I don't care what it costs, I will load up to the gills on medical insurance. I don't want to deal with medical bills and fighting over it.



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[ivinsfan]

I'm just looking at a real world example of Medicare payments if anyone is interested. My DH has Medicare, Part B and Medigap. He has a rather unexpected health issue the year he turned 64 so we just went with a everything covered Medigap plan.

So, he just had completely uncomplicated surgery center (in and out) repair on a hernia..total bill including doctor..9300...Medicare Approved Amount 2800......medicare paid around 2300 leaving 500 for the Medigap to cover..or if he didn't have Medigap 500 dollars out of pocket for us. Some people might prefer to put the cash going to Medigap in a separate account to use as needed.They had a couple items on the bill that Medicare did not approve and they were simply zeroed out and not passed along to us or the insurance.

 

[Mulligan]

I'm just looking at a real world example of Medicare payments if anyone is interested. My DH has Medicare, Part B and Medigap. He has a rather unexpected health issue the year he turned 64 so we just went with a everything covered Medigap plan.



So, he just had completely uncomplicated surgery center (in and out) repair on a hernia..total bill including doctor..9300...Medicare Approved Amount 2800......medicare paid around 2300 leaving 500 for the Medigap to cover..or if he didn't have Medigap 500 dollars out of pocket for us. Some people might prefer to put the cash going to Medigap in a separate account to use as needed.They had a couple items on the bill that Medicare did not approve and they were simply zeroed out and not passed along to us or the insurance.

Good example. Yes, I am sure its expensive, but who wants to be in their 70s fighting over medical bills, or pouring through every line that can possibly not be understood to see if your getting hosed. I like that "zeroed out " example. I will gladly pay for the premiums to have no extra bills trickling in my way.


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[ivinsfan]

Good example. Yes, I am sure its expensive, but who wants to be in their 70s fighting over medical bills, or pouring through every line that can possibly not be understood to see if your getting hosed. I like that "zeroed out " example. I will gladly pay for the premiums to have no extra bills trickling in my way.


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Agree, I think Medigap runs around 220 a month, he's been on it 18 months X 220...3960- minus the about 700 that insurance has paid for so far..3200 dollars, some people won't mind digging thru the bills for that kind of savings. Only you can decide what kind of exposure and hassle you want to deal with.

 

[Mulligan]

Agree, I think Medigap runs around 220 a month, he's been on it 18 months X 220...3960- minus the about 700 that insurance has paid for so far..3200 dollars, some people won't mind digging thru the bills for that kind of savings. Only you can decide what kind of exposure and hassle you want to deal with.

I guess its all relative too. After getting hosed with ACA "rate shock" and paying almost $300 for a crap plan, $220 a month sounds like an absolute bargain! Looks like I will move the chips all in on a Medigap plan. Heck compared to what I got now, I would pay double and not complain.


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