Health Insurance - Retiree questions

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Topic Author
ElecEel
Posts: 36
Joined: Wed Aug 27, 2014 7:49 am

Health Insurance - Retiree questions

Post by ElecEel »

Calling out all retirees or folks that are experts on this subject. What do you do when you don't have a company sponsored health insurance plan anymore? I checked out eHealthinsurance.com and managed to find a six month plan for $250/month. That seems reasonable to me. I thought it would be cheaper with Obamacare but when I head to the ACA website, I fall outside of the 400% poverty range and the rates jump to about $8000/year.

My questions are

1. Where do you get your health insurance from?
2. How much do you pay?
3. What kind of coverage do you get?

Any feedback is greatly appreciated.

Thank you.
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celia
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Location: SoCal

Re: Health Insurance - Retiree questions

Post by celia »

First you need to know if you are eligible for Medicare. If so, there are many, many choices for plans to supplement Medicare. See this current thread for a discussion on the medigap plans:
http://www.bogleheads.org/forum/viewtop ... st=2222604

If not eligible for Medicare yet, start with the ACA website to see what is available in your area and what the premiums would be. Then call the carriers directly to get info on similar plans (or better) without using the ACA.

The primary point of ANY insurance, including health insurance, is to protect you from a financial disaster. Don't focus on the common things that are covered. Rather, make sure you can afford the deductibles, co-pays, and drugs, if you were hospitalized or had cancer. What would be your maximum out-of-pocket payment under each plan?
A dollar in Roth is worth more than a dollar in a taxable account. A dollar in taxable is worth more than a dollar in a tax-deferred account.
bluemarlin08
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Joined: Wed Aug 29, 2007 12:18 pm

Re: Health Insurance - Retiree questions

Post by bluemarlin08 »

EHealth does not show all plans. Hard to find, but try to find an independent agent that knows the market.
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Hexdump
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Re: Health Insurance - Retiree questions

Post by Hexdump »

My wife is using the COBRA benefit since she just recently retired and is not eligible for Medicare.
Her plan is with United Health Care, a high deductible of $3,000 and a copay of 10%
It also includes a dental family plan.
The total premium is $517.00/month of which $83.00 is dental.

For some reason we make the payment to Conexis.

Good luck.
furwut
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Joined: Tue Jun 05, 2012 8:54 pm

Re: Health Insurance - Retiree questions

Post by furwut »

I don't think I'm going too far out on a limb in predicting that a $250/mo plan ($3000/yr) is very different, on more than price, than an $8000/yr plan.

I elected to do a HDHP+HSA ($250/mo) rather than continuing coverage as a retiree ($450/mo). I reasoned that since I was still relatively young and have no chronic conditions I hope to come out ahead. Don't forget that ACA policies cover, as part of the premium, normal screening and preventative services. So this year I've had a physical, colon screening and flu vaccination for no additional cost.

My plan has a $6000/yr deductible so any other services I seek I'll probably will pay 100% of the cost until I reach the plans maximum out of pocket limit - which is also about $6000. I can self-insure for that $6000 OOP comforted by the fact the most I should ever have to pay for medical treatment is $9000/yr ($3000 premium + $6000 max out of pocket cap).

Insurance polices are notoriously complex - so much so that even experts in the field have difficulty comparing one policy with another. That complexity, in my opinion, has clearly been engineered in and is not to the benefit of the consumer. ACA is a small step in regulating some of that away and permitting a more objective selection.
furwut
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Re: Health Insurance - Retiree questions

Post by furwut »

Hexdump wrote: For some reason we make the payment to Conexis.
Yeah - I'm currently making payments to Conexis for my COBRA continued dental. Conexis handles the COBRA election and premium collection for many employers.
gerrym51
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Re: Health Insurance - Retiree questions

Post by gerrym51 »

I'm not 65 yet. I pay 550 a month for my health insurance-as a single.my wife is on medicare

my plan is an Obmacare plan. I get no subsidy. Unless you fall within lower income ranges insurance is expensive.
Topic Author
ElecEel
Posts: 36
Joined: Wed Aug 27, 2014 7:49 am

Re: Health Insurance - Retiree questions

Post by ElecEel »

Ugh, I was hoping it wouldn't be too complicated. Thanks for all your responses. I wasn't expecting health insurance to be so expensive. btw, are those costs for a single person or family plan?

Also, You suggested contacting an agent. Is there a website for these agents?

thanks again for all the feedback.
gerrym51
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Joined: Sat Apr 27, 2013 1:44 pm

Re: Health Insurance - Retiree questions

Post by gerrym51 »

ElecEel wrote:Ugh, I was hoping it wouldn't be too complicated. Thanks for all your responses. I wasn't expecting health insurance to be so expensive. btw, are those costs for a single person or family plan?

Also, You suggested contacting an agent. Is there a website for these agents?

thanks again for all the feedback.

mine is for a single. Surprisingly enough Obamacare has brought the price down in my state. Now before you go crazy with that statement. I live in massachusettes. we have had guarantee issue for over 20 years. under guarantee issue an insurance company had to take you. so the individual plans were extremly expensive-like 11,000 dollars a year for a single.

however under Romneycare then Obamacare the rates went down to the 550 i pay.

however inthe states that did not have guarantee issue-which was most states-the rates have skyrocketed. thats because an insurance com;pany did not have to take you. they could just turn you down.
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fandango
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Re: Health Insurance - Retiree questions

Post by fandango »

You are going to have to educate yourself on this topic. Chalk it up as a learning experience.

1. Go to a local insurance agent and ask him about Obamacare plans and other plans on the private market. Get cost info and administation efficiency info. Most insurance agents are compensated by the insurance company if they sell you a plan. Usually you do not incur a cost for this.

2. Evaluate your medical condition and your annual medical costs

3. Crank the numbers.

My wife has a private plan that costs $350 per month with a $3000 deductible. She is in excellent health, and this was all she needed until she enrolls in Medicare at the end of this year. This was a Coventry plan, but there are many other insurance companies getting into the individual market.
Dandy
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Re: Health Insurance - Retiree questions

Post by Dandy »

Buying health insurance is a difficult task. Price is important but you often get what you pay for. If you can afford it I would opt for a plan that allows you to choose any doctor or hospital and get some reimbursement. If you or a loved one get a serious illness you want the best available not the best in the plan. Many excellent doctors avoid being a plan (and take a lower plan fee). You can usually reduce the cost by having a higher deductible.
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dm200
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Re: Health Insurance - Retiree questions

Post by dm200 »

gerrym51 wrote:
ElecEel wrote:Ugh, I was hoping it wouldn't be too complicated. Thanks for all your responses. I wasn't expecting health insurance to be so expensive. btw, are those costs for a single person or family plan?

Also, You suggested contacting an agent. Is there a website for these agents?

thanks again for all the feedback.

mine is for a single. Surprisingly enough Obamacare has brought the price down in my state. Now before you go crazy with that statement. I live in massachusettes. we have had guarantee issue for over 20 years. under guarantee issue an insurance company had to take you. so the individual plans were extremly expensive-like 11,000 dollars a year for a single.

however under Romneycare then Obamacare the rates went down to the 550 i pay.

however inthe states that did not have guarantee issue-which was most states-the rates have skyrocketed. thats because an insurance com;pany did not have to take you. they could just turn you down.
I have had Medicare for almost 4 years - and before that my wife and I had VERY expensive BC/BS individual HIPPA plans (because my last employer went bankrupt and we had to scramble to stay insured). I got into a Kaiser medicare plan and my wife got into a less expensive (but still a lot) Kaiser individual plan. Then a year ago, she finally enrolled in a MUCH less expensive ACA Kaiser plan with a tax credit). The Obamacare rates and plans differ a lot in different areas AND will soon change for 2015 (I suspect with a lot of variations for different areas).

I think I would go to the ACA exchange and look for coverage. I am not sure what added value an agent would bring.
gerrym51
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Joined: Sat Apr 27, 2013 1:44 pm

Re: Health Insurance - Retiree questions

Post by gerrym51 »

dm200 wrote:
gerrym51 wrote:
ElecEel wrote:Ugh, I was hoping it wouldn't be too complicated. Thanks for all your responses. I wasn't expecting health insurance to be so expensive. btw, are those costs for a single person or family plan?

Also, You suggested contacting an agent. Is there a website for these agents?

thanks again for all the feedback.

mine is for a single. Surprisingly enough Obamacare has brought the price down in my state. Now before you go crazy with that statement. I live in massachusettes. we have had guarantee issue for over 20 years. under guarantee issue an insurance company had to take you. so the individual plans were extremly expensive-like 11,000 dollars a year for a single.

however under Romneycare then Obamacare the rates went down to the 550 i pay.

however inthe states that did not have guarantee issue-which was most states-the rates have skyrocketed. thats because an insurance com;pany did not have to take you. they could just turn you down.
I have had Medicare for almost 4 years - and before that my wife and I had VERY expensive BC/BS individual HIPPA plans (because my last employer went bankrupt and we had to scramble to stay insured). I got into a Kaiser medicare plan and my wife got into a less expensive (but still a lot) Kaiser individual plan. Then a year ago, she finally enrolled in a MUCH less expensive ACA Kaiser plan with a tax credit). The Obamacare rates and plans differ a lot in different areas AND will soon change for 2015 (I suspect with a lot of variations for different areas).

I think I would go to the ACA exchange and look for coverage. I am not sure what added value an agent would bring.

the key part of your post 'with tax credit'. i don't get a tax credit
oldguy
Posts: 110
Joined: Sat Dec 13, 2014 11:40 am

Re: Health Insurance - Retiree questions

Post by oldguy »

I pay just under $250 a month for a family plan with a $10k deductible. I wonder if i would be better off without any insurance at all. My CPA tells me a person should have it or else some hospital might take all you have. I always heard as long as you paid something every month to the hospital, they couldn't take your cash from bank accounts - but that might be wrong?
rixer
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Joined: Tue Sep 11, 2012 4:18 pm

Re: Health Insurance - Retiree questions

Post by rixer »

Is there anyway you can adjust your income lower to get a subsidy? Maybe not drawing as much from tax sheltered accounts that count as income and taking from taxable savings instead (not income).
kolea
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Re: Health Insurance - Retiree questions

Post by kolea »

I am 63 and currently on COBRA from my job that I retired from. Payments are about $550/month. It is a steal, in my mind. No deductible, 20% coinsurance for hospitalization. Bluecross plan so it is good in multiple states.

Before retiring I budgeted everything out and planned on $800/month for health insurance just for me. My wife is on Medicare + supplemental insurance. Our total health budget (including dental, drugs, co-pays) for the two of us is about $15,000/year. It is the almost the biggest item in our retirement budget (travel and taxes are close).
Kolea (pron. ko-lay-uh). Golden plover.
J295
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Re: Health Insurance - Retiree questions

Post by J295 »

Two of us each age 55 insured with BC/BS purchased through the exchange. HD Bronze Plan with premiums around $10k for both of us, which is less than what I was paying for premiums when I was a partner in my business (where we essentially paid our own full cost of premiums for Bc/BS group coverage). We also fully fund an HSA but don't pay the medical expenses from that account but instead let it grow tax free (HSAs covered on Wiki and other posts).

I still work (very) part-time and have self employment income, so the premiums are deductible. Also, in some years we may be able to qualify for a tax credit (see the Kaiser calculator -- and note that the amount of the premium deduction is adjusted if one qualifies for the tax credit under the ACA).

Good luck.
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