Looking to Retire Soon and add More Cars to the Collection - Healthcare is on my mind

[TickTock]

I would like to see claims paid/dollar spent. That would be an interesting metric.

I'd like to see that data too. A quick search comes up empty.

UHC has been the best cost for us on ACA with an expenditure cap, a max out of pocket. So you have protection on the upper end. If not needed, you’re saving money most of the time.

Yes. Assuming your legitimate claim isn't denied.

 

[COcheesehead]

I'd like to see that data too. A quick search comes up empty.



Yes. Assuming your legitimate claim isn't denied.

I have a cap on what my cost is and I have an HSA as a slush fund to cover the difference. I have no problem with UHC.

 

[TickTock]

I'm glad that you have no problem with UHC. Other folks do. And you don't really have a cap on your cost if UHC denies your claim.

 

[COcheesehead]

I'm glad that you have no problem with UHC. Other folks do. And you don't really have a cap on your cost if UHC denies your claim.

There’s a process to follow, but you don’t want to hear that.

 

[TickTock]

Umm - sorry to have hijacked the thread like this.

OP, this a good place to look for retirement guidance. This thread notwithstanding. We're overall a good bunch of folks.

 

[TickTock]

There’s a process to follow, but you don’t want to hear that.

Glad to know that you're in my head and know that I don't want to hear that.

So. . . why does Kaiser have less than 1/5 the denial rate of UHC?

 

[Stormy Kromer]

To the OP on your thread. You are concerned about health care costs, as any responsible person should be. It is a concern for ER, but what I have seen so many people on this forum focus on is that health care costs will go away once you're on Medicare. No. From my back of the envelope estimates Medicare will cost DW and I about $220 each per month. A good supplement will be over $200 each per month. So that will be about $10,000 per year, minimum. Not counting out of pocket expenses.

Folks, don't think health care is free once you reach 65. For many people who lived with employer provided health care, you'll be paying more for health care in retirement then when you were working and getting coverage under an employer's plan. Lots of folks don't realize this reality because Medicare premiums are deducted from their social security checks each month.

For those planning on free health care at age 65, it ain't so. Plan on at least $5,000 per person per year.

 

[COcheesehead]

Well right now we pay $13,000+ for a bronze level HSA. So $10,000 for better coverage sounds good to me.

 

[NeilDH]

Keep in mind that currently the ACA subsidy cliff is set to come back for next year. Legislation could change that, but I have not heard anything about it getting extended. BTW, I don't hear about a lot of things.

I'm watching this, too. I don't think extension of the subsidy cliff is in the latest tax plan that the House just passed, but many legislators are worried about it for their constituents. If it doesn't get extended but you stay under 4x the federal poverty limit, the ACA premiums may go up some (they might anyway), but you'd still get premium credits (so far). KFF does a lot of good analysis on this; note especially this calculator.

Anyway, I had a choice of COBRA vs. ACA, too, and ACA was definitely more economical, even as we stuck with a PPO. COBRA would have lasted only 18 months anyway. We do have a big out-of-pocket limit, but we didn't want the restrictions of an HMO given some specific medical needs. If we ever have a tight year, we may have to reconsider that. The OOP hurt us in 2024, but we do have some HSA funds to lean on, too, and I figure those would last at least seven years, depending some on the market, and more if we have good medical years.

 

[Koolau]

To the OP on your thread. You are concerned about health care costs, as any responsible person should be. It is a concern for ER, but what I have seen so many people on this forum focus on is that health care costs will go away once you're on Medicare. No. From my back of the envelope estimates Medicare will cost DW and I about $220 each per month. A good supplement will be over $200 each per month. So that will be about $10,000 per year, minimum. Not counting out of pocket expenses.

Folks, don't think health care is free once you reach 65. For many people who lived with employer provided health care, you'll be paying more for health care in retirement then when you were working and getting coverage under an employer's plan. Lots of folks don't realize this reality because Medicare premiums are deducted from their social security checks each month.

For those planning on free health care at age 65, it ain't so. Plan on at least $5,000 per person per year.

I would agree that $10K/couple is a good starting point for MC/Medigap. Our premiums are somewhat less than you mention, but the added deductibles and co-pays gets you to $10K. And it can go up from there. DW and I have both been running into $1K + co-pays for "special" procedures lately. A heart Cath here, a CT Scan there. They add up fast.

 

[pacergal]

We also pay more now for Medicare than we did while on employers plan until 65.

OP--
Have you run Firecalc yet?
Also, answer these questions from the FAQ section:
Some Important Questions to Answer Before Asking - Can I Retire?

Both of these will help you plan for retirement costs.

 

[RetiredAt55.5]

To the OP on your thread. You are concerned about health care costs, as any responsible person should be. It is a concern for ER, but what I have seen so many people on this forum focus on is that health care costs will go away once you're on Medicare. No. From my back of the envelope estimates Medicare will cost DW and I about $220 each per month. A good supplement will be over $200 each per month. So that will be about $10,000 per year, minimum. Not counting out of pocket expenses.

Folks, don't think health care is free once you reach 65. For many people who lived with employer provided health care, you'll be paying more for health care in retirement then when you were working and getting coverage under an employer's plan. Lots of folks don't realize this reality because Medicare premiums are deducted from their social security checks each month.

For those planning on free health care at age 65, it ain't so. Plan on at least $5,000 per person per year.

Everything you said about costs is true, except you omitted the option of Medicare Advantage plans, in which case the total cost per person would be about half of your numbers. I don't mean to derail the OP's discussion, and I know there's definitely disadvantages with going the Advantage route, but it is a much lower cost option that is available.

No need to rehash the tradeoffs of Advantage plans here, as that's been discussed numerous times before in other threads.