Retiring/Health insurance

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fancyrick63
Posts: 17
Joined: Mon Mar 26, 2012 10:39 am

Retiring/Health insurance

Post by fancyrick63 »

The members of Bogleheads have helped me out on various occassions with vaious issues and I much appreciate that so I am coming back once again. We have recently sold our house (at least it is under contract) if all goes well we will be moving to another state. We are planning to move initially to Myrtle Beach for a few months then to Florida for 6-12 months and ultimatley decide were we want to live. Not sure if we will ultimatly buy but initially we will rent. All-in-all I am 63 and want to travel enjoy live but it is not as easy as that. I have my healthcare insurance but my wife who is 59 will not after leaving her job (which has med insurance now). Since we are going to be in different states at different times how to we get her reasonabel medical coverage and through who? Since she is leaving on her own free will can we obtain COBRA or is there a better way? Also how do you handle auto insurance, mail and any other issues you can and will face being somewhat of a vagabond? We have excellent credit, good investments, no bills and hopefully enough to get us to the "end" the only unknown is medical insurance . In case if anyone has a question regarding "why so young" both of us have had stressful careers and why not enjoy the rest of our lives living at perhaps somewhat of a lower scale but perhaps a more fulfilled life. I have tried to find books/articles on all to no avail hopngthe Bogleheads have insight on all. Thank you a great deal
magazinewriter
Posts: 417
Joined: Mon Apr 19, 2010 11:39 am

Re: Retiring/Health insurance

Post by magazinewriter »

The easiest thing might be for you to check with your HR department to see if you can add your wife to your health insurance so that she hopefully would be able to take advantage of your retiree health insurance policy, too.

If that won't work, your wife can obtain COBRA even though she is leaving her job on her own. That will last for 18 months in most cases and will take her up to 2014 -- or just about. If the Affordable Care Act (ObamaCare) remains in effect, she will then be able to buy an individual policy even if she has a pre-existing condition. If ObamaCare is struck down by the Supreme Court or repealed, she could still buy an individual policy but would be subject to medical underwriting and could possibly be denied coverage. If that happened, she most likely could still get covered through what is known as the HIPAA provision, which lets someone who is losing a group policy (either through the end of their COBRA coverage or the end of a retiree health plan) buy coverage, but it is expensive.

To get an idea of individual insurance rates, check out ehealthinsurance.com but keep in mind that if she has a pre-existing conditions the rates could be higher (unless the Affordable Care Act is in effect at the time).

Hopefully she won't have to apply for an individual policy until you get settled in your permanent retirement location because in at least some cases individual policies don't transfer from one state to another.

There are people in the HR business on this board so hopefully if I have missed something, they will tell you.

Enjoy your new less stressful life and good luck!
StoutDrinker
Posts: 41
Joined: Tue Apr 05, 2011 9:18 am

Re: Retiring/Health insurance

Post by StoutDrinker »

Your wife will have 60 days from her date of termination to sign up for COBRA. If during this time, you find out she will have to sign up for COBRA which will probably be the more expensive option, wait until it's close to the 60-day deadline. This way you guys can save on about two months of premiums. Also, if something were to happen within the 60 days prior to signing up...you can just go ahead and sign up and COBRA will cover her retroactively starting from her date of termination.

Definitely check with your former employer to see if you can add her to your policy. With any coverage...since you will be traveling to different states...make sure there is out-of-network coverage. Usually it will be a higher coinsurance. Also, you might want to consider travel insurance...this is something I haven't really researched...so if you find out anything interesting. Please let us know.

As for mail...it would be best if you can send it to a relative's address who can screen them and forward any important looking ones. There are companies out there who would do this for you...Earthclassmail, I believe is one of them. Not sure about auto insurance...I would go without a car if possible.
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