Sharing Health Insurance Costs

[Smitty77]

We retired January of 2013, after doing about 18 months of detail financial planning on 'What if?' and 'Can we do this now?'.

As part of this planning phase, I got quotes for a PPO Health Care plan, in both California and also in South Dakota as we were planning to shift our Domicile as part of the retirement shift. I also checked with my companies HR, on costs for Group Retirement Health Care plan. I took the highest of these, a BCBS from California, and plugged that number into my retirement spread sheet. All of these costs, were from 1st quarter of 2012 - and based upon pre ACA plans. I used a 15% escalation per year, until we both reached 65. (I'm about 5 1/2 years older then the DW. We picked a retirement date of 1 month before my 60th birthday, and she worked a bit longer until 1 month before her 55th birthday.)

What was unknown at that time, was the dramatic shift in plans and increase in costs from ACA, for the Pre 65 and non subsidized plans.

We had quite sticker shock at what the actual costs were, which know one could tell us until towards the very end of 2012 - and during all of the roll out problems of the exchange too. My wife and I had both turned in our papers, and were in the final months of training our replacements, by this time.

We used up about 90% of the monthly contingency bucket of funds I had in our Can We Do It retirement spread sheet - to cover the first year of retirement Health Care costs. For 2015's increase, another 28% jump for us, we've cut back on our travel plans, and have deferred some of the budget we had planned on modifications to our coach, and some for our Sticks & Bricks home. Due to the well covered threads on SD PPO's not being available to Fulltimer's, we are on my companies Group Retirement Health Insurance plan, BCBS of North Carolina. Which has requested a good size increase for 2016. So, we'll probably have to go to Bag-O-Wine from our Box-of-Wine budget saving today!

OK - that was my background info. I was hoping others would share their costs for 2014.

Pre 65

1 or 2 People

State

Provider

Monthly costs

Deductible

Percentage Responsible/Copay


For us:

Pre 65 = yes

2 of us on the plan

SD Domicile, but NC Retirement Group Health Care Plan

Provider = BCBS NC

Costs = $1454 per month

Deductible = $6,000 each

Percentage/Copay = 0% / $35 regular doc & $50 special doc


=========

As mentioned, many good threads on Health Insurance. I was reading other threads here and on other boards too, where members Pre 65 without Group Retirement Heath Insurance plans averrable to them, were going thru the 'What if?' - 'Can we do it phase?', and should we change Domicile and Full Time too?

My hopes are that by us sharing our real world examples of costs, that this will help them in their planning phases. And, it might help some of us that have already retired see if we should make other changes now too.

TIA, and sorry for the long thread - wanted enough background info to help set it up as to the reason for the asking to share costs.

Best to all,
Smitty

[JohnInAz]

health care costs are a real wild card. For us:
Live in Arizona
Me 60: cigna: $491/mo HSA $5000 deductible
Wife 55: Blue Cross $522/mo HSA $3500 deductible

[Barbaraok]

I take it that your income is such that you do not qualify for subsidies? Have you checked Texas & Florida?

Barb

[Filthy-Beast]

This is a real wild card in planning to retire before 62. I'm trying to workout how many years before then I can pull it off. Thinking of working to 58 about 4 years from now. what is the cut-off amount for subsidies? I'm guessing I'm screwed if I'm pulling 3 to 4k a month from the 401k.

[ScottS]

Originally Posted by Filthy-Beast

This is a real wild card in planning to retire before 62. I'm trying to workout how many years before then I can pull it off. Thinking of working to 58 about 4 years from now. what is the cut-off amount for subsidies? I'm guessing I'm screwed if I'm pulling 3 to 4k a month from the 401k.

Using the Kaiser health insurance calculator:
$3k/Mo. = $36,000/yr , Individual age 54
silver plan: $287 per month

$4K/Mo. = $48,000/yr.
silver plan: $461 per month

Using same calculator, but funding a HSA fully @ $4,350/yr
$3k/Mo. = $36,000/yr - $4,350 = $31,650
silver plan: $230 per month

$4K/Mo. = $48,000/yr - $4,350 = $43,650
silver plan: $348 per month

These are rough estimates from an online calculator. The specifics for your situation will determine your actual cost. YMMV

[Mr_D]

Right now we're on COBRA at $1435 a month but it does include dental. Didn't plan on that but they terminated my wife with only one week's notice. At that time she had been on short and long term disability for about 3½ years.
Now we're having trouble getting them to pay the correct amount since they think we're on Medicare Part B and we're not.
DW was just diagnosed with liver cancer, CT and full body scan on the 1st and then over to OHSU on the 15th to meet with a liver specialist and interventional radiologist. No word yet on prognosis.
So, no matter how well you plan your retirement life can throw you a curve!

[saydiver]

Health insurance rates have been going up for years. You just didn't notice because your employer was picking up most of the tab. Rates will continue to go up until Americans get healthy.

I'm older than DH, but both of us are over 55 and under 65.

In TX (77399 - Escapees zip) our non-subsidied monthly rate for 2015 was $1050 for both of us for
BCBS HSA Bronze PPO 006 plan $6000 deductible


In SWFL our non-subsidied monthly rate for 2015 is $1411 for both of us for
BCBS HSA Bronze PPO/EPO 1419 plan - $6250 deductible
which is $361 a month higher than Texas

Sue

[saydiver]

Originally Posted by Mr_D

Right now we're on COBRA at $1435 a month but it does include dental. Didn't plan on that but they terminated my wife with only one week's notice. At that time she had been on short and long term disability for about 3½ years.
Now we're having trouble getting them to pay the correct amount since they think we're on Medicare Part B and we're not.
DW was just diagnosed with liver cancer, CT and full body scan on the 1st and then over to OHSU on the 15th to meet with a liver specialist and interventional radiologist. No word yet on prognosis.
So, no matter how well you plan your retirement life can throw you a curve!

Sorry to hear about your wife Mr D. Just be glad you have insurance, especially since cancer treatments are very expensive.

[wildtoad]

Retired here in SC. No subsidies, very few choices of plans and regardless of all the posturing, none are what I call affordable. Wife and I are 61/63. Silver plan, high deductible. $1251 a month premiums for the both, which is $100 a month more than last year. On my 2014 tax form, I claimed over $26,000 in legit medical costs to include the premiums and out of pocket expenses. As you can imagine, puts a strain on the retirement income. Fortunately I have just a couple of years to go to Medicare and can start drawing SS in September.

The only good news in all of this is that the $26k was far less than what I would have had to pay if I did not have insurance, and my tax bill was significantly less than it otherwise would have been.

[wildtoad]

Originally Posted by Filthy-Beast

This is a real wild card in planning to retire before 62. I'm trying to workout how many years before then I can pull it off. Thinking of working to 58 about 4 years from now. what is the cut-off amount for subsidies? I'm guessing I'm screwed if I'm pulling 3 to 4k a month from the 401k.

Since you will be still too young for early SS would this be your only income? I would check with a financial guy before you initiate this plan. The withdrawal will be taxable, and unless you follow strict IRS rules you may also be subject to a penalty.

[blang]

3 Program Options - Liberty HealthShare

Liberty Health Share is one of the four "health sharing ministries" named in the ACA as an approved alternative. We are both in our 50s and we pay less than $400 per month total for Option 3, the biggest and best plan. It covers 100% up to 1 million and the deductible is $500, if I remember correctly. Included in that $400 is something called the Guardian but I don't know what it is... you'll have to read for yourself. I simply looked at the ACA plans and then picked the cadillac of everything for Liberty thinking, based on price, I couldn't go wrong. I will say that we have yet to turn in a medical bill so I can't speak to how they work on the payment process. We treat all insurance as protection for something catastrophic and don't turn in the little stuff. There's plenty of information on the website so... happy reading and saving your hard-earned dollars and NOT supporting anything to do with the ACA.

[glennwest]

We are very content with Liberty Health Share.

[Smitty77]

Originally Posted by wildtoad

Since you will be still too young for early SS would this be your only income? I would check with a financial guy before you initiate this plan. The withdrawal will be taxable, and unless you follow strict IRS rules you may also be subject to a penalty.

That's a spot on caution. Most 401K plans requires one you to be at least 59 1/2 before you can start drawing down without an added penalty for early withdrawal. So do double check the specifics for your situation.

Best,
Smitty

[Filthy-Beast]

Yeah, if you work for the company that your 401k is with and stop working for them at age 55 to 59.5 and start pulling it that year you don't owe the 10% penalty. You will owe taxes on any withdrawal as it's considered regular income. If you don't start withdrawals the same year quit working and wait until the next year you'll owe the penalty if you start pulling before 59.5