Retiree health care premium before reaching medicare age

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math22
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Retiree health care premium before reaching medicare age

Post by math22 » Fri Jan 13, 2017 9:47 am

I am planning to retire at 55. At that age (spouse with similar age) I will still have to provide health insurance for 2 teenagers.
I am trying to estimate the monthly premium for a good high deductible health care. I found some info online but wanted to sample here what people pay monthly. I was looking for something around the lines of $3K family deductible, $10K max out of pocket (yearly), 20% copay and including hospital/accident coverage.

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JDCarpenter
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Re: Retiree health care premium before reaching medicare age

Post by JDCarpenter » Fri Jan 13, 2017 9:52 am

Varies substantially via zipcode. Varies substantially by whether ACA qualified or not. Will likely vary even more substantially going forward. We are retiring this year at 57/56 with no kids and are making a SWAG of 2000 a month for health insurance costs, with the knowledge that we could be forced to slice into our [large] discretionary spending to pay a lot more. Who knows if that is grossly high, grossly low, or just luckily right. (and that is just for insurance--out of pockets, etc. would be on top)
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Rupert
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Re: Retiree health care premium before reaching medicare age

Post by Rupert » Fri Jan 13, 2017 9:56 am

Given that the ACA is about to be repealed and we have no idea what will replace it, what people are paying now will not be particularly helpful to you going forward. It is impossible to predict healthcare costs even a few years out at this time.

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mhc
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Re: Retiree health care premium before reaching medicare age

Post by mhc » Fri Jan 13, 2017 10:21 am

Rupert wrote:Given that the ACA is about to be repealed and we have no idea what will replace it, what people are paying now will not be particularly helpful to you going forward. It is impossible to predict healthcare costs even a few years out at this time.


Agree.

Last year I went on my state's exchange to determine costs. I also determined that if I controlled my income during early retirement I could get a large subsidy.

I'm still a few years from retiring at 55. I believe my company will let me continue my insurance through them if I retire at 55. I think subsidized health insurance through my state's exchange would be the best deal.

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dm200
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Re: Retiree health care premium before reaching medicare age

Post by dm200 » Fri Jan 13, 2017 10:26 am

math22 wrote:I am planning to retire at 55. At that age (spouse with similar age) I will still have to provide health insurance for 2 teenagers.
I am trying to estimate the monthly premium for a good high deductible health care. I found some info online but wanted to sample here what people pay monthly. I was looking for something around the lines of $3K family deductible, $10K max out of pocket (yearly), 20% copay and including hospital/accident coverage.


Will you have any employer based health insurance coverage as a retiree?

As pointe out, the whole ACA future is in turmoil.

retire57
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Re: Retiree health care premium before reaching medicare age

Post by retire57 » Fri Jan 13, 2017 10:46 am

We are pre-medicare, in a plan much as you outline. Cost = $900/month. :shock:

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Re: Retiree health care premium before reaching medicare age

Post by Wagnerjb » Fri Jan 13, 2017 11:37 am

I am retired (but not yet Medicare eligible) and have a plan through work, but we are charged the full price. We have a "bank" of subsidies we can use, but we can clearly see the full price of the plan.

Our High Deductible plan has a $2800 family deductible, an out of pocket max of $8,000 and 20% copays once we reach the deductible. The premium is $1800 a month for "you + spouse + children", which covers as many children as you have.

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dm200
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Re: Retiree health care premium before reaching medicare age

Post by dm200 » Fri Jan 13, 2017 11:53 am

retire57 wrote:We are pre-medicare, in a plan much as you outline. Cost = $900/month. :shock:


If I interpret the OP correctly, the need/desire is coverage for two adults (spouses) and two children. Depending on what happens with ACA, I would speculate that the costs for such coverage is likely to be much, much higher. Just before ACA, my wife (then early 60's) paid much more than that for an individual plan (not high deductible) for just ONE person. [I was on medicare, as she is now). It did go down for her with the adoption of the ACA (even before subsidy/credit). There was a very significant drop in premiums (age based) from pre-ACA market based to the cap (in most states 3 times younger insured). If the ACA cap for older insured goes away, it seems likely that ages 55-65 will face a huge rise in premiums.

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Re: Retiree health care premium before reaching medicare age

Post by Puakinekine » Fri Jan 13, 2017 12:29 pm

ACA for one person, age 63, $778 per month, $7150 deductable, bronze plan Without ACA, I am guessing it will be higher, if they are willing to insure you or your family members. (This includes a dental plan plus fees)

This might help you to see what they rates are now in Hawaii.
https://hmsa.com/health-plans/individua ... lic-plans/
Last edited by Puakinekine on Fri Jan 13, 2017 1:12 pm, edited 1 time in total.

eog
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Re: Retiree health care premium before reaching medicare age

Post by eog » Fri Jan 13, 2017 12:35 pm

I would budget 25K-30K a year for health insurance if I was in your shoes. I also agree with the above poster that nobody knows (although most seems to agree that premiums will go up) what will happen once the ACA is repealed.

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Re: Retiree health care premium before reaching medicare age

Post by hicabob » Fri Jan 13, 2017 12:35 pm

dm200 wrote:
retire57 wrote:We are pre-medicare, in a plan much as you outline. Cost = $900/month. :shock:


If I interpret the OP correctly, the need/desire is coverage for two adults (spouses) and two children. Depending on what happens with ACA, I would speculate that the costs for such coverage is likely to be much, much higher. Just before ACA, my wife (then early 60's) paid much more than that for an individual plan (not high deductible) for just ONE person. [I was on medicare, as she is now). It did go down for her with the adoption of the ACA (even before subsidy/credit). There was a very significant drop in premiums (age based) from pre-ACA market based to the cap (in most states 3 times younger insured). If the ACA cap for older insured goes away, it seems likely that ages 55-65 will face a huge rise in premiums.



Supposedly the ACA max for older but pre-medicare is currrently 3 times the minimum. Based on what I've read I think 5 times the minimum might be a reasonable guesstimate which is a 40% increase? That's what I'm budgeting for anyway so my $12k/annum allowance per person goes to $16800. A tax credit would be nice.

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dm200
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Re: Retiree health care premium before reaching medicare age

Post by dm200 » Fri Jan 13, 2017 12:39 pm

Puakinekine wrote:ACA for one person, age 63, $778 per month, $7150 deductable, bronze plan Without ACA, I am guessing it will be higher, if they are will to insure you or your family members. (This includes a dental plan plus fees)

This might help you to see what they rates are now in Hawaii.
https://hmsa.com/health-plans/individua ... lic-plans/


This is consistent with what my wife had before Medicare (ACA individual plan - no credit/subsidy). Before ACA, it was much higher because of her age. ACA mandated a cap on increased premiums due to age. For those 55-65, the age premium is capped in most states at 3 times the regular premium (younger insured) but without the cap (before ACA) the age premium was much higher.

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dm200
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Re: Retiree health care premium before reaching medicare age

Post by dm200 » Fri Jan 13, 2017 12:40 pm

Supposedly the ACA max for older but pre-medicare is currrently 3 times the minimum. Based on what I've read I think 5 times the minimum might be a reasonable guesstimate which is a 40% increase? That's what I'm budgeting for anyway so my $12k/annum allowance per person goes to $16800. A tax credit would be nice.


I agree with this opinion.

SuzBanyan
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Re: Retiree health care premium before reaching medicare age

Post by SuzBanyan » Fri Jan 13, 2017 12:48 pm

I would guess that the crystal ball for health insurance expenses after this year is probably as opaque as it will ever be. In addition, most people expect that even those with insurance will be paying a higher portion of their out of pocket health expenses over time. As a result, health costs in retirement will need to be a combined number consisting of both cost of insurance and actual health costs.

And for most, it will be a range of possible costs. For example, your health insurance may go down by $1000 but your deductible may go up by $2000.

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dm200
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Re: Retiree health care premium before reaching medicare age

Post by dm200 » Fri Jan 13, 2017 12:54 pm

Getting affordable health insurance coverage, it seems perhaps, may come back as a reason for not "retiring" early and/or if you have dependents that rely on such coverage. In the private sector, health insurance benefits for retirees have nearly disappeared. Federal retirees still get them, so this could be a reason for being a federal employee (at least long enough to qualify for such retirement benefits).

Oliver
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Re: Retiree health care premium before reaching medicare age

Post by Oliver » Sat Jan 14, 2017 6:22 pm

I agree with dm200, without Obamacare, planning an early retirement is far more difficult. Assuming that the higher health insurance cost can be met, the other hurdle is preexisting conditions. Prior to Obamacare, people with preexisting conditions paid more, had coverage that excluded any medical expenses related to the preexisting condition or simply could not purchase insurance. It is very difficult to get rid of almost all of Obamacare and still prohibit consideration of preexisting conditions by insurance companies. As an early early​ retiree, I hope the Republicans find a solution.

I have no problem living overseas as a solution but I hate not having the option of living in the USA.

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Re: Retiree health care premium before reaching medicare age

Post by Not Law » Sat Jan 14, 2017 6:53 pm

In late 2005 I moved to COBRA coverage, then in 2007 started with individual (with spouse) insurance. Those payments went from $600 per month (10% of expenses) in 2007 to $1800 plus per month in 2013 (30% of expenses). When I explored trying to change, pre-existing conditions slammed the door. I was told that nothing relating to any condition that existed at the time of the switch - things like cholesterol , blood pressure, thyroid, etc., would be excluded from coverage for a minimum of 6 months, so even a request for prescription renewal would be excluded, as well as the drugs.

I did not pay my December 2013 $1800 plus premium, which then covered the first 8 months of subsidized ACA premiums in 2014. Even without the subsidy, the ACA would have limited my premium to about $1200 based on the 3x oldest/youngest limit. Health insurance premiums now account for about 5% of expenses, which have dropped since the house was paid off in 2014. The potential loss of the ACA certainly makes the planning until medicare eligibility (less than 4 years now) a VERY difficult prospect.

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Re: Retiree health care premium before reaching medicare age

Post by LadyGeek » Sun Jan 15, 2017 9:28 am

As a reminder, speculation about future legislation is prohibited by forum policy. The details are here: Re: Tax exempt muni bond funds & proposed lower rates on taxable investment interest

Although concerns are primarily focused on changes in Social Security and taxes, the same guidelines apply to the ACA. The main point is to "keep investors from making bad decisions. Proposed regulations change many times between the time they're introduced and signed into law."
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