Insurance in Colorado

[DenverCraig]

I'm 58 and want to retire next year (actually I want to retire tomorrow, but that's a different issue) so I'm starting to look at health insurance. I'm hoping someone from Colorado can confirm my understanding.

I just spoke to Connect for Health, "Colorado's Official Health Insurance Marketplace" to find out how to get insurance. I learned:

• If my annual income is under approximately $17K, I can get "Health First Colorado" which is Medicaid (and not handled the Connect for Health).

• If my income is over approximately $17K, but less than some number that they didn't know, I can get insurance through Connect for Health, and they will manage a premium tax credit and apply that to my premium, so I will pay less. It sounds like the more I make, the less my premium tax credit.

So if i quit my job at a time of the year where I've made a good chunk of my salary, I won't get a premium tax credit, and when the next year rolls around, I won't have any salary so I'm either getting Medicaid or paying full-boat for insurance (since my annual income is less than $17K). Or I need to have $17K of income to get some premium assistance.

This is a depressing exercise. Is there some detail I'm missing.

Thanks!

 

[WyomingLife]

Colorado > Wyoming on these issues; so I'm envious, except you are taxed and we ain't.

 

[geeky_grrl]

I'm presuming you have some investments if you are retiring early - can you use them to generate enough income to be above 17k? For example, any withdrawals from traditional IRA or 401k will be included in your income. Capital gains, dividends, and interest from non tax advantaged accounts also would be included.

 

[MRG]

That's the gist of it. I'm not sure about the medicaid pieces but yeah. A suggestion is to use a broker, costs you nothing and it's another set of eyes.

When I retired in May 13, I rode Cobra out till the end of the year and started ACA the following. Of course at that time that was about the only option.

 

[COcheesehead]

I talked to a broker. It didn’t change the cost of the insurance, but the guidance was valuable.

 

[pb4uski]

....So if i quit my job at a time of the year where I've made a good chunk of my salary, I won't get a premium tax credit, and when the next year rolls around, I won't have any salary so I'm either getting Medicaid or paying full-boat for insurance (since my annual income is less than $17K). Or I need to have $17K of income to get some premium assistance.

This is a depressing exercise. Is there some detail I'm missing.

Thanks!

The first half is correct since your premium tax credit is based on your annual income... so if your income (MAGI) for the year is higher the 400% FPL ($51k for a single in 2020) then you won't get a premium tax credit. So it is best off to retire early in the year to optimize premium tax credits.

But for the first full year that you are retired you could be on Medicaid. Members here would prefer to not be on Medicaid, so they manage their income to be higher than Medicaid and buy a ACA policy and get significant premium tax credits. It's a new game that you can look forward to learning to play with your newfound time.

If you have tax-deferred savings then once you reach 59 1/2 it is pretty easy to manage your income and you really want to do so, both for ACA and also tax purposes. During those early years it is likely that you can do Roth conversions at no or low tax cost.

What will you be living on once you retire? Taxable account savings?

 

[DenverCraig]

Great info, thanks! Not crazy about Medicaid so we're not going to do that. Colorado folks, who do you use for health insurance?

 

[COcheesehead]

Great info, thanks! Not crazy about Medicaid so we're not going to do that. Colorado folks, who do you use for health insurance?

It’s somewhat regional. Rocky Mountain Healthplans seemed to be better for the western part of the state. Anthem Bluecross for the east, but as I said up thread, a broker can help you wade through the chaos.

 

[jim584672]

So if i quit my job at a time of the year where I've made a good chunk of my salary, I won't get a premium tax credit, and when the next year rolls around, I won't have any salary so I'm either getting Medicaid or paying full-boat for insurance (since my annual income is less than $17K). Or I need to have $17K of income to get some premium assistance.

This is a depressing exercise. Is there some detail I'm missing.

Thanks!

The good thing about Medicaid is previous months income does NOT count and only current month income is considered. ACA plans are based on calendar year, and this is a problem for someone who quits mid to late year.

I don't know how Colorado is for their Medicaid, but I am in NY and my doctors from the work plan are in the Medicaid plan I am in, so I see no difference in my coverage, and it has no costs.

 

[zinger1457]

The health market uses MAGI (modified adjusted gross income) to determine your income, make sure you have a good understanding what MAGI includes, there's a lot more to it than just earned income.

 

[davebarnes]

Colorado folks, who do you use for health insurance?

Kaiser.
We are huge fans of the HMO concept and of Kaiser.

I put them to the test twice:
a. colon cancer, surgery, chemo
b. perianal abscess, 3 surgeries

I am on Medicare Advantage el cheapo plan.
My wife pays $723/mo for a high deductible HSA Bronze plan.
Our income is way over the limit.

 

[pjm-7]

My time in the Denver area I used Kaiser and was very satisfied with them. I rarely went to the doctor and used them primarily for preventive services. Now that I moved to to the western slope I had to drop Kaiser and signed up with BC/BS. I wish I could have kept Kaiser.

I like the ACA overall, however Connect for Health Colorado I generally despise. As someone who spent my working years in the financial services it amazes me that the can even function. They may try you patience. Their service has gotten better and some people are better than others. Just hang with it.

 

[Jimmie]

Great info, thanks! Not crazy about Medicaid so we're not going to do that. Colorado folks, who do you use for health insurance?

We use United Healthcare and have been happy with them. They have good contracts with medical providers to keep out of pocket costs pretty low.

 

[Willers]

Great info, thanks! Not crazy about Medicaid so we're not going to do that. Colorado folks, who do you use for health insurance?

It will depend on where you live. Where I am our choice is Anthem...period. All the others decided it wasn't worth it.

 

[walkinwood]

+1 for Kaiser Permanente in Denver. We use the Bronze HSA plan. Our doctors have been available when needed, the information is all online and communicating with your doctor (or their team) via phone or email is easy. Tests, x-rays etc all take place in the same facility making it very convenient. We haven't had any serious or chronic medical issues.

Connect for Colorado had some teething problems early on, but now the renewal is a piece of cake - took me less than a minute to re-enroll last November. The initial enrollment was a tedious, but it was a one time thing. A broker would make that easier for you.

The ACA premium subsidies for Colorado are the same as any state. There is plenty of information on this forum about managing AGI so you can get subsidies.

Earning too much for subsidies is a good problem to have, but it hurts when you just miss the subsidies because your income is just above the cutoff.

 

[Singletrack]

Colorado folks, who do you use for health insurance?

We live on the Front Range, and about the only viable option for us is Anthem BCBS. Our monthly premiums (me and DW) are between $1,300 and $1,400. That’s about a $400 reduction from 2019. We do not qualify for any subsidies or other financial assistance.