If you are retired & 54 - 59 yrs old, how much are you paying for health insurance?

[Retiree_Having_Fun]

About $1350 / month ($16,200 annual) with $13,000 deductible in Indiana. Due to some conditions we end up paying about all of this every year ($29,200) - Insurance doesn't even get us good deals on drugs - we use GoodRX and it usually beats insurance.

 

[Bir48die]

57 and 60. FloridaBlue Bronze HSA plan. Broad network. $12K family deductible. 2019 premium $24K. So, if we get really sick, we pay $36K.

Oh, that and the extra Obamacare tax of $42K that we had to pay last year.

Love those stories about people with substantial means getting free health care. Who do you think is paying for it?

Thanks for saying this!

 

[ivinsfan]

Agree.... And the ones who can't are those that have tucked away income for years and paid no taxes on that money. They had no problem earning money and not paying their "fair share" then, after all someone has to pay for the cost to operate the government.

And the ones that can manage MAGI are those who already have paid taxes on those earnings and now spending that money. As the tax man says, pay me now or pay me later.

Fair enough but no one envisioned such high HI costs or the fact that people with lower incomes would get such a huge break on what they pay courtesy of the government, so it was a unknown hidden cost.

IMO part of the problem is the attitude of some posters here who almost brag about how they pay nothing or almost nothing due to income management. Its not like you are all knowing and smarter then others who pay full rate, its simply the largesse of the government shining on you. Just because it's part of the tax code doesn't mean you can't have a little compassion for those just on the other side of the fence.

 

[hotwired]

bragging

I certainly didn't mean to come across as bragging. In fact, I feel like this whole deal where we're paying almost nothing is a "snafu" that happened when Trump took office and made his "tweaks". I HOPE not, but I wonder if the loophole will be closed next year? And incidentally, last year, we made a few hundred bucks over the limit and had to pay back our 50% ish subsidy of 7K in one lump sum. (This is why I wonder if it will be closed. Year before our subsidy was about 50%, this year it's about 100%...and our income did not change much)

 

[ivinsfan]

I certainly didn't mean to come across as bragging. In fact, I feel like this whole deal where we're paying almost nothing is a "snafu" that happened when Trump took office and made his "tweaks". I HOPE not, but I wonder if the loophole will be closed next year? And incidentally, last year, we made a few hundred bucks over the limit and had to pay back our 50% ish subsidy of 7K in one lump sum. (This is why I wonder if it will be closed. Year before our subsidy was about 50%, this year it's about 100%...and our income did not change much)

not singling out any single poster, it's kind of a "let them eat cake" ,too bad for you attitude. Even if it's tax law, it's OK for people who are paying full freight on HI to express the attitude that they don't feel it's balanced fairly. And loftily telling them, you knew the rules when you funded your retirement account is not really accurate.

 

[bobandsherry]

Fair enough but no one envisioned such high HI costs or the fact that people with lower incomes would get such a huge break on what they pay courtesy of the government, so it was a unknown hidden cost.

IMO part of the problem is the attitude of some posters here who almost brag about how they pay nothing or almost nothing due to income management. Its not like you are all knowing and smarter then others who pay full rate, its simply the largesse of the government shining on you. Just because it's part of the tax code doesn't mean you can't have a little compassion for those just on the other side of the fence.

Excuse me, but just where have I not shown "compassion"? Your statements seem a bit bold to me.

But, now that you mention it, I don't recall seeing anyone who tucked away big $$$ into 401K and IRA have compassion as they did so without paying any tax on those dollars and left the lower income to shore up more of the bill for the US. Many have boldly proclaimed how much they tucked away in 401K/IRA accounts, all without paying a dime in tax. Many avoided 25% to 35% tax on that money, and now with new taxes are now paying a much lower rate.

 

[bobandsherry]

I certainly didn't mean to come across as bragging. In fact, I feel like this whole deal where we're paying almost nothing is a "snafu" that happened when Trump took office and made his "tweaks". I HOPE not, but I wonder if the loophole will be closed next year? And incidentally, last year, we made a few hundred bucks over the limit and had to pay back our 50% ish subsidy of 7K in one lump sum. (This is why I wonder if it will be closed. Year before our subsidy was about 50%, this year it's about 100%...and our income did not change much)

Yeah, who knows what next year or the year after will bring. The method that was written into the subsidiaries was just not well thought out. To have a 'cliff' that is substantial is just not reasonable. Depending on November outcome changes may be more difficult.

 

[ivinsfan]

Excuse me, but just where have I not shown "compassion"? Your statements seem a bit bold to me.

But, now that you mention it, I don't recall seeing anyone who tucked away big $$$ into 401K and IRA have compassion as they did so without paying any tax on those dollars and left the lower income to shore up more of the bill for the US. Many have boldly proclaimed how much they tucked away in 401K/IRA accounts, all without paying a dime in tax. Many avoided 25% to 35% tax on that money, and now with new taxes are now paying a much lower rate.

the compassion I mention means simply realizing that people funding IRA's and agreeing to pay the taxes later, had no idea a) health insurance would get so costly b) the government would step in set an arbitrary income ceiling and heavily subsidize people below it and expect people even one dollar above the number to pay full freight.


As far as boldly proclaiming they dodged taxes, due to less pensions being offered these people were simply trying to provide for some income in their later years. When you take 70K living expenses out of an IRA in your early 60's and a couple pays close to 20K in HI that's is not a lower tax rate.

 

[bobandsherry]

the compassion I mention means simply realizing that people funding IRA's and agreeing to pay the taxes later, had no idea a) health insurance would get so costly b) the government would step in set an arbitrary income ceiling and heavily subsidize people below it and expect people even one dollar above the number to pay full freight.


As far as boldly proclaiming they dodged taxes, due to less pensions being offered these people were simply trying to provide for some income in their later years. When you take 70K living expenses out of an IRA in your early 60's and a couple pays close to 20K in HI that's is not a lower tax rate.

I never trust the government.... lol And not that I was "smarter", but I planned for my early retirement by putting $$ into 401K and also a reasonable nest egg in after tax investment as in back of my mind it seemed like government would do something that wouldn't be advantageous to be all in 401K/IRA's. If I were truly smarter I'd have done an even better job I actually expect to see more manipulation by the government as 401K/IRA balances remain a huge target. Time will tell.

However, if it were me and I needed $70K for living expenses, I'd lower the IRA W/D to $64K and then figure out how I'd cover the $6K difference for the next few years until I could get Medicare. One example, get a HEL, pull $6K from that. Cost you about $200 in interest the first year, then $400 a year each subsequent year.

For example, get a HEL, pull $6K from that each year. For 4 years you'd pull out $24K and pay about $4K in interest, much less expensive than forgoing the subsidy. And if subsidy rules change then you just unwind that transaction.

Heck, I'd even consider borrowing against my credit card. Even at 21% interest you'd pay $10K in interest over the 4 years, but save much more than that in subsidies.

Or look to sell a car or some other assets. Maybe sell house and downsize and pocket enough from sale of house that doesn't count in your AGI/MAGI.

Or even plan to pull a large sum from IRA now ($24K) and then put that into after tax investments and pull from there each subsequent year. You then only take hit in current year but gain benefits in subsequent years with subsidy. But if subsidy goes away then that works against you.

Just need to figure out what works for you.

 

[ivinsfan]

We're on the same page here,its all about options but sometimes no matter how much you plan, you can still have the rug pulled out from under you. It really sucks when its done arbitrarily by the government. I certainly understand why people in that position feel unfairly treated.

 

[45th Birthday]

But, now that you mention it, I don't recall seeing anyone who tucked away big $$$ into 401K and IRA have compassion as they did so without paying any tax on those dollars and left the lower income to shore up more of the bill for the US. Many have boldly proclaimed how much they tucked away in 401K/IRA accounts, all without paying a dime in tax. Many avoided 25% to 35% tax on that money, and now with new taxes are now paying a much lower rate.

Ahhh, so that's what you meant in an earlier post that people who can't manage MAGI to get a subsidy did not pay their "fair share" in taxes because they have tucked away income for years in tax advantaged accounts. I was having trouble figuring out what you meant by this.

In my case, all tax advantaged assets I own comprise only 10% of my net worth.

To me, the entire Obamacare scheme is 1) a means for people who want to run other people's lives to dictate health coverage for everyone and 2) a massive wealth re-distribution combined with huge deficit spending. Enjoy your subsidies while they last.

 

[Dtail]

We're on the same page here,its all about options but sometimes no matter how much you plan, you can still have the rug pulled out from under you. It really sucks when its done arbitrarily by the government. I certainly understand why people in that position feel unfairly treated.

Plus there are many new posters who wish to learn or are nervous on how to pay for healthcare. Thus from my standpoint, I try to provide some advice with ACA income management being one of the options if they can work it out. Not in a bragging way.

There have been a few posters with a net worth over 7m, who wonder if they can retire? Are they wondering or just bragging? I believe they are truly just nervous about the whole process. Yet there are some negative responses like "seriously,etc".....

 

[Dtail]

Ahhh, so that's what you meant in an earlier post that people who can't manage MAGI to get a subsidy did not pay their "fair share" in taxes because they have tucked away income for years in tax advantaged accounts. I was having trouble figuring out what you meant by this.

In my case, all tax advantaged assets I own comprise only 10% of my net worth.

To me, the entire Obamacare scheme is 1) a means for people who want to run other people's lives to dictate health coverage for everyone and 2) a massive wealth re-distribution combined with huge deficit spending. Enjoy your subsidies while they last.

Bolded - sounds to me exactly like the tax reduction bill this year.

 

[MichaelB]

Yoda would say

"A good idea if we all stayed away from politics, it would be. Hmm"

 

[ivinsfan]

About $1350 / month ($16,200 annual) with $13,000 deductible in Indiana. Due to some conditions we end up paying about all of this every year ($29,200) - Insurance doesn't even get us good deals on drugs - we use GoodRX and it usually beats insurance.

Well to the boards, is the cost of health insurance and ACA income planning a point of interest for you? Why don't you introduce yourself, we don't bite here but sometimes we do show some teeth....

 

[Retiree_Having_Fun]

is the cost of health insurance and ACA income planning a point of interest for you?

Already have a plan but have to get the income down first. Using every method available now.

 

[PoorOldCountryBoy]

insurance for a 54 and a 57 in Mass from Blue Cross is $1110/month. This is an HSA-eligible policy so we max out our contributions, the plan is that some of this will be there for LTC, but sometimes life throws curve balls. Also $100/month for delta dental.
FWIW this is so much better than my former employers "platinum" BCBS ripoff plan. The flexibility is totally worth it compared to all the phone time my coworkers had to do to beg their insurance to do the right things--ugh!

 

[rayinpenn]

I live in Pennsylvania, am 59, a non-smoker, and retired last year. I pay $250/month for a silver plan with an $800 deductible. I work to keep my MAGI around $33K in order to keep my premiums in this range. I believe there will be a 2.5% increase in the premiums for 2019.

Seriously? I live just west of Philly. I would have had to pay over $1,800/mo (for two of us) to find a silver plan that my doctors would accept, and that was with a $6,000 deductible for each of us, plus copays. I ended up going with my former Megacorp’s retiree plan, which costs more$2,404/mo) but has a small deductible and no copays, and is widely accepted. We don’t get any subsidies, so they aren’t a factor if we had chosen an ACA plan.

MGAI too high! I’ll be retiring in January and estimate the cost to be $2,500 a month for the wife son and I .. and that’s after the company kicks in a retiree stipend. It’s crazy.