Health Care Costs In Retirement

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
Tool-Time
Posts: 25
Joined: Sat Mar 09, 2019 8:59 am

Health Care Costs In Retirement

Post by Tool-Time » Mon Mar 11, 2019 3:32 pm

I am looking to retire within the next few years. The sooner the better due to health reasons. The biggest thing stopping me would be health care costs. I have preexisting conditions that would keep my premiums very high. How are other BHs dealing with healthcare costs in early retirement?

Housedoc
Posts: 393
Joined: Thu May 24, 2018 4:25 pm
Location: Alabama

Re: Health Care Costs In Retirement

Post by Housedoc » Mon Mar 11, 2019 3:50 pm

My employer that I retired from offers insurance for retirees. Still 800 a month for high deductible plan with dental. I use a pot of money company gave us to cover 50 pct of it. Balance should last me till I hit 65. Been retired since 2009.

Topic Author
Tool-Time
Posts: 25
Joined: Sat Mar 09, 2019 8:59 am

Re: Health Care Costs In Retirement

Post by Tool-Time » Mon Mar 11, 2019 3:54 pm

My company does not offer benefits nearly that generous.

2015
Posts: 2906
Joined: Mon Feb 10, 2014 2:32 pm

Re: Health Care Costs In Retirement

Post by 2015 » Mon Mar 11, 2019 4:33 pm

Since retirement, I've been managing income using a combination of taxable and roth conversions to remain eligible for ACA Silver Plan PTC's and subsidies. Between the two, I'm paying less than $1300 per year (without tax credits/subsidies would be something like $12K). This year my only source of income will be a roth conversion which I'll manage to remain in order to remain in the 150-200% FPL in order to continue qualifying for tax credits/subsidies. This is the plan until Medicare.
Last edited by 2015 on Mon Mar 11, 2019 4:34 pm, edited 1 time in total.

mhalley
Posts: 7254
Joined: Tue Nov 20, 2007 6:02 am

Re: Health Care Costs In Retirement

Post by mhalley » Mon Mar 11, 2019 4:33 pm

At this time, there are multiple options.
1. Exchange plan. Subsidized or unsubsidized.
2. Health sharing ministry
3. Medicaid if very poor
4. None
I went for unsubsidized plan due to doing Roth conversions. At age 64, $2800 plus a month for HSA bronze plan for wife and I.

User avatar
willthrill81
Posts: 11803
Joined: Thu Jan 26, 2017 3:17 pm
Location: USA

Re: Health Care Costs In Retirement

Post by willthrill81 » Mon Mar 11, 2019 4:54 pm

At the current point in time and due to numerous factors, we would probably be most attracted to a health sharing ministry if I retired now.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

marcopolo
Posts: 2166
Joined: Sat Dec 03, 2016 10:22 am

Re: Health Care Costs In Retirement

Post by marcopolo » Mon Mar 11, 2019 5:07 pm

Tool-Time wrote:
Mon Mar 11, 2019 3:32 pm
I am looking to retire within the next few years. The sooner the better due to health reasons. The biggest thing stopping me would be health care costs. I have preexisting conditions that would keep my premiums very high. How are other BHs dealing with healthcare costs in early retirement?
No one can tell with any degree of assurance what will happen in the future, but as things stand today, your preexisting conditions would NOT result in higher premiums for a health insurance plan.

You can also get pretty accurate estimate of what your current costs would, and whether you would be eligible for a Premium Tax Credit (PTC).

Of course, there is no way to know how much that might increase in the future, whether PTCs would still be available, or even whether the protection against charging more for people with preexisting conditions will remain in place.
Once in a while you get shown the light, in the strangest of places if you look at it right.

HoosierJim
Posts: 600
Joined: Wed Mar 24, 2010 7:11 pm

Re: Health Care Costs In Retirement

Post by HoosierJim » Mon Mar 11, 2019 5:14 pm

Try this Kaiser calculator for your zip code/state .

KEY factor - if you can arrange you MAGI, you can possibly save money. Learn what MAGI means.

For example, if all your money is in your 401k or IRA and you need $100K withdrawal per year to survive, you won't be eligible for any subsidies.

On the other hand, if you have $70 k post tax money and need to take $30k withdrawal - you could save about a lot.

Lots of threads on this site.
Last edited by HoosierJim on Mon Mar 11, 2019 5:18 pm, edited 1 time in total.

User avatar
Cyclesafe
Posts: 877
Joined: Wed Dec 31, 2014 1:03 pm

Re: Health Care Costs In Retirement

Post by Cyclesafe » Mon Mar 11, 2019 5:15 pm

$1861/mo for two 64 year olds in Cali. $10k deductible Bronze HDP.
"Plans are useless; planning is indispensable.” - Dwight Eisenhower

DetroitRick
Posts: 706
Joined: Wed Mar 23, 2016 9:28 am
Location: SE Michigan

Re: Health Care Costs In Retirement

Post by DetroitRick » Mon Mar 11, 2019 5:18 pm

Retired at 50 and still pre-Medicare now. We started with 2 years of COBRA coverage, then went with a a Blue Cross Blue Shield individual policy, and finally ACA policies since. Prior to ACA, our state had mandatory-issue individual policies anyway (with no pre-existing condition exclusions with proof of continuous coverage). For us, healthcare costs were just one more big consideration among many.

Current ACA system has been an improvement for us. But it requires a great deal of income management to stay off the 2 cliffs (cost-sharing reductions and premium subsidies). Healthcare costs were something we seriously considered first, but were never a total deal breaker in our early retirement decision. It's worth looking at closely, though.

User avatar
dm200
Posts: 21240
Joined: Mon Feb 26, 2007 2:21 pm
Location: Washington DC area

Re: Health Care Costs In Retirement

Post by dm200 » Mon Mar 11, 2019 5:26 pm

Tool-Time wrote:
Mon Mar 11, 2019 3:32 pm
I am looking to retire within the next few years. The sooner the better due to health reasons. The biggest thing stopping me would be health care costs. I have preexisting conditions that would keep my premiums very high. How are other BHs dealing with healthcare costs in early retirement?
We (DW and I) both have Medicare and have chosen a Kaiser Medicare plan. Our costs seem (so far) very reasonable (or low) and quality if high.

Yes - the bridge years between early retirement and Medicare are almost always very expensive.

For some fortunate folks, usually in the public sector today, early retirees get a break on healthcare costs.

If your health/medical issues can qualify you for Social Security Disability, after two years you are eligible for Medicare.

chessknt
Posts: 174
Joined: Wed Jul 13, 2016 3:15 am

Re: Health Care Costs In Retirement

Post by chessknt » Mon Mar 11, 2019 6:20 pm

Health ministries have many key differences from a health insurance plan that drastically increase your financial risk if an unlikely event occurs. I would encourage anyone considering these to do thorough research and read the plan documents in their entirety to understand what you are getting.

The aca marketplace is really your best bet. It is expensive but that is the reality of our healthcare system--there isn't a secret cheap option that gets you the same care and coverage as an aca plan. If you have a chronic condition with expensive medications but don't require frequent doctor visits medical tourism can also be an avenue to explore.

TheDDC
Posts: 363
Joined: Mon Jan 08, 2018 11:11 am

Re: Health Care Costs In Retirement

Post by TheDDC » Mon Mar 11, 2019 6:42 pm

dm200 wrote:
Mon Mar 11, 2019 5:26 pm
For some fortunate folks, usually in the public sector today, early retirees get a break on healthcare costs.
No sir. That's a bit of a generalization. I have worked in a few public school districts and none paid insurance until Medicare eligibility save for one with an "early out" deal.

FYI to the OP: IXNAY on the "poor health" talk around here with regard to retirement plans. You may be talked into medically assisted suicide (by husband with a "caring" physician wife with a needle) or feeding the LTCI industry.

Always,

-TheDDC

J295
Posts: 2066
Joined: Sun Jan 01, 2012 11:40 pm

Re: Health Care Costs In Retirement

Post by J295 » Mon Mar 11, 2019 8:30 pm

Early retiree. Keep modified adjusted gross income under $64,000 for the two of us. After premium tax credit our net premium is zero for affordable care act bronze policy

User avatar
SevenBridgesRoad
Posts: 422
Joined: Sat Jul 07, 2018 12:14 am

Re: Health Care Costs In Retirement

Post by SevenBridgesRoad » Mon Mar 11, 2019 8:50 pm

Tool-Time wrote:
Mon Mar 11, 2019 3:32 pm
I am looking to retire within the next few years. The sooner the better due to health reasons. The biggest thing stopping me would be health care costs. I have preexisting conditions that would keep my premiums very high. How are other BHs dealing with healthcare costs in early retirement?
Retired last year at age 61. ACA Silver Plan in Oregon with $850 deductible (and small co-pays to see PCP and specialists not subject to a deductible) is costing wife and I $2/month. The key is managing MAGI (modified adjusted gross income). Another poster already provided a link re MAGI. We are hopeful this plan will carry us to age 65 and Medicare.
Retired 2018 | Love to work at nothing all day | 30:70 VTINX with two deferred single premium annuities and deferred SS | VPW Method | Sleeping very well at night

Post Reply