Health Insurance for Retirees, % escalation

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Barefootgirl
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Health Insurance for Retirees, % escalation

Post by Barefootgirl » Sun Jul 01, 2018 11:41 am

For those retiring before the age of Medicare eligibility and with health insurance from the previous employer, what number are you using to project annual escalation in premium costs? and where are you getting the number from?

Any reason to think it would be different for an employee retiring with FEHB (federal employee health care benefits) and planning to use that until Medicare?

Thank you.
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CULater
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Re: Health Insurance for Retirees, % escalation

Post by CULater » Sun Jul 01, 2018 5:24 pm

So, I just did a calculation from my records of my health insurance costs from 2009-2017 (Medicare part B and D, and Medigap) In 2009 it was $2,679 and in 2017 was $4,034. That's an increase of 51% or CAGR of 5.25%. The cumulative inflation rate over that period was 14.3%. If my health insurance costs were tracking inflation, they would have been $3,060 in 2017 but were 32% higher than that.

So, if SS increases are just tracking the inflation rate, my health insurance costs have outpaced my SS by about 33% over just the last 8 years.
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Bir48die
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Re: Health Insurance for Retirees, % escalation

Post by Bir48die » Sun Jul 01, 2018 6:16 pm

First of all, the previous poster did not answer your question as they are tracking Medicare increases and not pre-Medicare increases as you asked.

This is a crap shoot. I was on Cobra at $540/mth after retirement. I went on Healthcare.gov and signed up with Kaiser at $679/mth in November of last year. Then 45 days later I get a note that my premiums are going to $844/mth and deductible went from $3,000 to $3,500. I just about dropped dead. My only saving grace is my wife is on Tricare from her late husband. If not, I would have gone back to work. I am 62 and in good health for the most part. I can't even begin to think about 2019 or I'll have a panic attack.

The system sucks in it's current form.

delamer
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Re: Health Insurance for Retirees, % escalation

Post by delamer » Sun Jul 01, 2018 10:43 pm

I retired with FEHB, and figure that 5% per year is a reasonable estimate. But it is just a guess; more than general inflation but not as high as what people on the ObamaCare exchanges are experiencing.

Of course, with FEHB there may be cheaper option to switch to if your current plan becomes too expensive.

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willthrill81
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Re: Health Insurance for Retirees, % escalation

Post by willthrill81 » Sun Jul 01, 2018 10:44 pm

I would highly recommend that you listen to the four podcast episodes that Roger Whitney of "The Retirement Answer Man" show did a few months ago. They were very solid and well-rounded. A link to the first is below.

https://rogerwhitney.com/211-healthcare ... t-her-job/

If you're reasonably healthy, you might want to look into the healthcare sharing ministries out there. They can be a fraction of the cost of a health insurance plan and have been solid options for many people for many years 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

Rupert
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Re: Health Insurance for Retirees, % escalation

Post by Rupert » Mon Jul 02, 2018 7:14 am

willthrill81 wrote:
Sun Jul 01, 2018 10:44 pm

If you're reasonably healthy, you might want to look into the healthcare sharing ministries out there. They can be a fraction of the cost of a health insurance plan and have been solid options for many people for many years now.
Have they? I keep waiting for someone to report back on how those plans pay when you are suffering from a very expensive health crisis, such as lung or breast cancer. No one ever does.

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midareff
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Re: Health Insurance for Retirees, % escalation

Post by midareff » Mon Jul 02, 2018 7:50 am

My wife is on my former employer's plan for which I pay calculated cost, currently $569.88 monthly. No annual deductible, annual checkups n/c, primary $15 copay, specialist $30 co pay. Labs or tests at lab company n/c, at hospital $100. Drug coverage excellent. It has been increasing about 7% a year since 2012 although last year was almost 10%. No dental coverage.

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midareff
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Re: Health Insurance for Retirees, % escalation

Post by midareff » Mon Jul 02, 2018 7:52 am

willthrill81 wrote:
Sun Jul 01, 2018 10:44 pm


If you're reasonably healthy, you might want to look into the healthcare sharing ministries out there. They can be a fraction of the cost of a health insurance plan and have been solid options for many people for many years now.
The problem is that you are reasonably healthy until the day you aren't, and then you are stuck with what you have.

marcopolo
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Re: Health Insurance for Retirees, % escalation

Post by marcopolo » Mon Jul 02, 2018 8:57 am

Rupert wrote:
Mon Jul 02, 2018 7:14 am
willthrill81 wrote:
Sun Jul 01, 2018 10:44 pm

If you're reasonably healthy, you might want to look into the healthcare sharing ministries out there. They can be a fraction of the cost of a health insurance plan and have been solid options for many people for many years now.
Have they? I keep waiting for someone to report back on how those plans pay when you are suffering from a very expensive health crisis, such as lung or breast cancer. No one ever does.
Yeah, I really wish people would stop proposing this as an option for health insurance. It is NOT health insurance. The fact that the suggestion had to be prefaced with the stipulation that you are in good health (left unsaid is that you better hope you stay that way) sort of makes the point.
Once in a while you get shown the light, in the strangest of places if you look at it right.

J295
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Re: Health Insurance for Retirees, % escalation

Post by J295 » Mon Jul 02, 2018 9:16 am

With previous employer costs for the two of us today would have been over $20,000 per year (that is full premium cost).

With Affordable Care Act and us managing MAGI (modified adjusted gross income) to qualify for PTC (premium tax credits) premiums are about $500 per year.

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willthrill81
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Re: Health Insurance for Retirees, % escalation

Post by willthrill81 » Mon Jul 02, 2018 9:55 am

marcopolo wrote:
Mon Jul 02, 2018 8:57 am
Rupert wrote:
Mon Jul 02, 2018 7:14 am
willthrill81 wrote:
Sun Jul 01, 2018 10:44 pm

If you're reasonably healthy, you might want to look into the healthcare sharing ministries out there. They can be a fraction of the cost of a health insurance plan and have been solid options for many people for many years now.
Have they? I keep waiting for someone to report back on how those plans pay when you are suffering from a very expensive health crisis, such as lung or breast cancer. No one ever does.
Yeah, I really wish people would stop proposing this as an option for health insurance. It is NOT health insurance. The fact that the suggestion had to be prefaced with the stipulation that you are in good health (left unsaid is that you better hope you stay that way) sort of makes the point.
Rather than bash me, why don't you listen to the podcasts I referenced by Roger Whitney? He discusses the pros and cons of the arrangement at length. If they were half as bad as many Bogleheads make them out to be, they wouldn't have kept so many members for so many years. And they aren't insurance, and I was careful to not refer to them as such.

The "good health" comment is because most of these plans have relatively high self-pay fees, akin to an insurance policy with a high deductible. Those with chronic health problems understand well that high deductible plans usually lead to them spending more because they're getting medical care so often. The relatively healthy person who rarely gets medical care is often well served with a high deductible insurance plan, and this person may also be a good candidate for a health sharing plan.

Saying that this option used by many people should not be an option for anyone is too draconian.
“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

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willthrill81
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Re: Health Insurance for Retirees, % escalation

Post by willthrill81 » Mon Jul 02, 2018 10:02 am

midareff wrote:
Mon Jul 02, 2018 7:52 am
willthrill81 wrote:
Sun Jul 01, 2018 10:44 pm


If you're reasonably healthy, you might want to look into the healthcare sharing ministries out there. They can be a fraction of the cost of a health insurance plan and have been solid options for many people for many years now.
The problem is that you are reasonably healthy until the day you aren't, and then you are stuck with what you have.
Not necessarily. You might get a part-time job with one of the employers out there that offers health insurance to part-time employees. Or in the case of the OP, you make do until you are eligible for Medicare. Or you become a medical tourist. Even with healthcare, there are almost always options.
“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
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Re: Health Insurance for Retirees, % escalation

Post by marcopolo » Mon Jul 02, 2018 10:23 am

willthrill81 wrote:
Mon Jul 02, 2018 9:55 am
marcopolo wrote:
Mon Jul 02, 2018 8:57 am
Rupert wrote:
Mon Jul 02, 2018 7:14 am
willthrill81 wrote:
Sun Jul 01, 2018 10:44 pm

If you're reasonably healthy, you might want to look into the healthcare sharing ministries out there. They can be a fraction of the cost of a health insurance plan and have been solid options for many people for many years now.
Have they? I keep waiting for someone to report back on how those plans pay when you are suffering from a very expensive health crisis, such as lung or breast cancer. No one ever does.
Yeah, I really wish people would stop proposing this as an option for health insurance. It is NOT health insurance. The fact that the suggestion had to be prefaced with the stipulation that you are in good health (left unsaid is that you better hope you stay that way) sort of makes the point.
Rather than bash me, why don't you listen to the podcasts I referenced by Roger Whitney? He discusses the pros and cons of the arrangement at length. If they were half as bad as many Bogleheads make them out to be, they wouldn't have kept so many members for so many years. And they aren't insurance, and I was careful to not refer to them as such.

The "good health" comment is because most of these plans have relatively high self-pay fees, akin to an insurance policy with a high deductible. Those with chronic health problems understand well that high deductible plans usually lead to them spending more because they're getting medical care so often. The relatively healthy person who rarely gets medical care is often well served with a high deductible insurance plan, and this person may also be a good candidate for a health sharing plan.

Saying that this option used by many people should not be an option for anyone is too draconian.
OP: I am thinking about buying a new car, what kind of resale value might i expect on a Honda?
Willthill81: If you are in really good physical shape, Specialized makes a nice bike you might want to consider
A bike might be a suitable replacement for a car in some limited circumstances, but that does not make it a car.
Just because a lot of people buy bicycles does not make them a car.

This is even worse than that because making the mistake of thinking this is health insurance could bankrupt you.

As a recent retiree, I have investigated numerous options for health insurance. Sharing Ministries are NOT an option for health insurance.
The self-pay for routine items is reasonable, as you say it is like high-deductible. I have no problem with that.
Regarding chronic conditions, even high deductible plans have out-of-pocket maxes. These ministries have no such thing, so your chronic condition could cost you a fortune.

The biggest problem is that there is NO contractual obligation for them to pay for anything. They rely on the good will of the others in the ministry to share your burdens. They really are a series of GoFundMe campaigns disguised as "insurance".

Even then, most (all?) of them have very low limits on what they even promise (with no way to enforce) they will pay. So, you might be healthy today, but if something were to happen tomorrow that required expensive treatment, you would find out rather quickly that these plans are of limited use as form of insurance.
Once in a while you get shown the light, in the strangest of places if you look at it right.

marcopolo
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Re: Health Insurance for Retirees, % escalation

Post by marcopolo » Mon Jul 02, 2018 10:32 am

willthrill81 wrote:
Mon Jul 02, 2018 9:55 am
If they were half as bad as many Bogleheads make them out to be, they wouldn't have kept so many members for so many years.
....

Saying that this option used by many people should not be an option for anyone is too draconian.
Despite most Bogleheads frowning upon them, lots of people buy and keep:

Variable annuities
Whole life insurance
Universal life insurance
Edward Jones accounts
etc.

Just because they are used by many people does not necessarily make them good options.


Do you consider it Draconian for Bogleheads to suggest that it would be irresponsible of us to recommend these as good options for investments?
Once in a while you get shown the light, in the strangest of places if you look at it right.

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FrugalInvestor
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Re: Health Insurance for Retirees, % escalation

Post by FrugalInvestor » Mon Jul 02, 2018 10:43 am

midareff wrote:
Mon Jul 02, 2018 7:52 am
willthrill81 wrote:
Sun Jul 01, 2018 10:44 pm


If you're reasonably healthy, you might want to look into the healthcare sharing ministries out there. They can be a fraction of the cost of a health insurance plan and have been solid options for many people for many years now.
The problem is that you are reasonably healthy until the day you aren't, and then you are stuck with what you have.
+1

I know this from first-hand experience. Fortunately for me my brush with death coincided almost to the day with my going on Medicare (actually one day after). Until that day I was in nearly perfect health. As a matter of fact, had I not had a rather innocuous symptom my 'welcome to Medicare' appointment would have turned up nothing. I hate to think about what the health and financial consequences may have been had I still been on my ACA policy. Now I worry about my wife who will likely be on ACA for a few more years. I have nothing against healthcare sharing ministries but I wouldn't want the level of financial uncertainty that would come along with them should I have a serious illness. It's not the time that one needs additional stress.
IGNORE the noise! | Our life is frittered away by detail... simplify, simplify. - Henry David Thoreau

Dinosaur Dad
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Re: Health Insurance for Retirees, % escalation

Post by Dinosaur Dad » Mon Jul 02, 2018 11:04 am

Another important consideration re: pre-Medicare medical coverage:

I'm 62, and when I was laid off, I looked at:

1. Cobra
2. the premiums, copays, deductibles, potential subsidies for Exchange options
3. Other options e.g. I looked at an option where I would buy in to a union-based plan...but lots of precondition restrictions made it unworkable for me as I take medications for urology issue and I have a non-life-threatening heart arrythmia. DW has some issues too. So it didn't make sense for me.

What I also discovered: there is a BIG difference in the Exchange plan networks. Not remotely as good as what you get with typical employer-based plans...even though it's the same provider.

My experience: I was laid off, used Cobra to maintain my old company insurance for 14 months, and then just started back up at another company a few months ago. If I had to buy off the Exchange at least I knew I could get coverage, but I was nervous about worst case scenario: serious illness with not-so-great networks.

Very interested to see how others chime in on this. Huge issue for everyone who is pre-medicare.
"Take calculated risks - that is quite different from being rash." | General George S. Patton

MichaelM
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Re: Health Insurance for Retirees, % escalation

Post by MichaelM » Mon Jul 02, 2018 11:33 am

Retired 1-1-17 @ age 63.5 had never been sick other than occasional flu and mono at age 16. At retirement purchased ACA Bronze Plan to see me to age 65 to protect downside risk. On 3-26-18 thought I had contacted food poisoning. Five torturous days later I called the nearby hospital and asked if they took my insurance (they did). Had a friend drive me to ER. Turned out had passed some gallstone gravel and it gave me an infection that almost killed me. In hospital 11 days, several CT scans, massive amounts of antibiotics. Room was $900/day. I’ve finished paying all the bill at approx $6500 was my max liability on an over $100K billed amount. Things I learned: you really are healthy until you’re not, don’t pretend to know what is wrong medically and never stay in bed five days while an infection gains strength.

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willthrill81
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Re: Health Insurance for Retirees, % escalation

Post by willthrill81 » Mon Jul 02, 2018 11:51 am

marcopolo wrote:
Mon Jul 02, 2018 10:32 am
willthrill81 wrote:
Mon Jul 02, 2018 9:55 am
If they were half as bad as many Bogleheads make them out to be, they wouldn't have kept so many members for so many years.
....

Saying that this option used by many people should not be an option for anyone is too draconian.
Despite most Bogleheads frowning upon them, lots of people buy and keep:

Variable annuities
Whole life insurance
Universal life insurance
Edward Jones accounts
etc.

Just because they are used by many people does not necessarily make them good options.


Do you consider it Draconian for Bogleheads to suggest that it would be irresponsible of us to recommend these as good options for investments?
If you had listened to the podcast I referenced earlier, the large health sharing ministry that Roger Whitney interviewed has never failed to pay for a member's qualified healthcare expenses. What is qualified is specifically laid out in the documentation. Rather than paying more for less, as is usually the case with the instruments you referred to, many of these members pay less, often for the same. Are there risks? Of course, just as there are risks no matter what you do in life.

I'm not recommending this option for the OP. Rather, I'm merely suggesting that the OP consider it.

Note: Even whole life insurance can be useful for certain people in certain situations.
“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

Rupert
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Re: Health Insurance for Retirees, % escalation

Post by Rupert » Mon Jul 02, 2018 11:52 am

willthrill81 wrote:
Mon Jul 02, 2018 10:02 am
midareff wrote:
Mon Jul 02, 2018 7:52 am
willthrill81 wrote:
Sun Jul 01, 2018 10:44 pm


If you're reasonably healthy, you might want to look into the healthcare sharing ministries out there. They can be a fraction of the cost of a health insurance plan and have been solid options for many people for many years now.
The problem is that you are reasonably healthy until the day you aren't, and then you are stuck with what you have.
Not necessarily. You might get a part-time job with one of the employers out there that offers health insurance to part-time employees. Or in the case of the OP, you make do until you are eligible for Medicare. Or you become a medical tourist. Even with healthcare, there are almost always options.
You can't travel or find a job when you're sick. And where does one find one of these part-time jobs that offer good health insurance to employees anyway? It's fine to take a risk if that's what you want to do. But you should be honest with yourself about the risk you're taking.

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snackdog
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Re: Health Insurance for Retirees, % escalation

Post by snackdog » Mon Jul 02, 2018 11:55 am

Double your inflation rate assumption, as a rule of thumb.

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willthrill81
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Re: Health Insurance for Retirees, % escalation

Post by willthrill81 » Mon Jul 02, 2018 11:57 am

Rupert wrote:
Mon Jul 02, 2018 11:52 am
willthrill81 wrote:
Mon Jul 02, 2018 10:02 am
midareff wrote:
Mon Jul 02, 2018 7:52 am
willthrill81 wrote:
Sun Jul 01, 2018 10:44 pm


If you're reasonably healthy, you might want to look into the healthcare sharing ministries out there. They can be a fraction of the cost of a health insurance plan and have been solid options for many people for many years now.
The problem is that you are reasonably healthy until the day you aren't, and then you are stuck with what you have.
Not necessarily. You might get a part-time job with one of the employers out there that offers health insurance to part-time employees. Or in the case of the OP, you make do until you are eligible for Medicare. Or you become a medical tourist. Even with healthcare, there are almost always options.
No offense, really, but that's ridiculous. You can't travel or find a job when you're sick. And where does one find one of these part-time jobs that offer good health insurance to employees anyway?
It depends greatly on the illness. Many chronic health issues are not debilitating to the point that you cannot work or travel. I've had several family members and friends with very serious illnesses (e.g. cancer, MS) continue to work and/or travel well beyond diagnosis. I suggest that you take a look at the rapidly growing medical tourism industry; it's amazing what is being done in terms of treatment and cost.

Is this a great option? Maybe not. Is it never an option for anyone, as was stated (i.e. 'you are stuck')? Absolutely not.
“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

HIinvestor
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Re: Health Insurance for Retirees, % escalation

Post by HIinvestor » Mon Jul 02, 2018 12:05 pm

We have FEHB from H’s 45 career with the fed govt. Our charge of the premiums haven’t changed much from before he retired in 2012 through now, 2018. The fed govt still pays its share of the premiums and we pay the balance.

We have chosen to also have H covered by Medicare A and B, but know some others who have opted just to have FEHB without Medicare B.

We get much more benefit from our insurance than our portion of the premium. Our premiums have always stayed relatively stable over the 30+ years we have had our FEHB, with excellent coverage. We really feel for those who have experienced wild premium increases and decreased coverage.

One thing people considering share or other plans need to keep in mind are exclusions especially for pre-existing conditions. That can be a major issue, especially as folks age.

Rupert
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Re: Health Insurance for Retirees, % escalation

Post by Rupert » Mon Jul 02, 2018 12:10 pm

willthrill81 wrote:
Mon Jul 02, 2018 11:57 am
Rupert wrote:
Mon Jul 02, 2018 11:52 am
willthrill81 wrote:
Mon Jul 02, 2018 10:02 am
midareff wrote:
Mon Jul 02, 2018 7:52 am
willthrill81 wrote:
Sun Jul 01, 2018 10:44 pm


If you're reasonably healthy, you might want to look into the healthcare sharing ministries out there. They can be a fraction of the cost of a health insurance plan and have been solid options for many people for many years now.
The problem is that you are reasonably healthy until the day you aren't, and then you are stuck with what you have.
Not necessarily. You might get a part-time job with one of the employers out there that offers health insurance to part-time employees. Or in the case of the OP, you make do until you are eligible for Medicare. Or you become a medical tourist. Even with healthcare, there are almost always options.
No offense, really, but that's ridiculous. You can't travel or find a job when you're sick. And where does one find one of these part-time jobs that offer good health insurance to employees anyway?
It depends greatly on the illness. Many chronic health issues are not debilitating to the point that you cannot work or travel. I've had several family members and friends with very serious illnesses (e.g. cancer, MS) continue to work and/or travel well beyond diagnosis. I suggest that you take a look at the rapidly growing medical tourism industry; it's amazing what is being done in terms of treatment and cost.

Is this a great option? Maybe not. Is it never an option for anyone, as was stated (i.e. 'you are stuck')? Absolutely not.
I actually edited my comment shortly after writing it after re-thinking the "ridiculous" language, but the gist of my edited comment is the same. I'm very familiar with medical tourism. It's often an okay option for some people for things like dental work, colonoscopies, and other elective procedures/treatments/testing. But I can't imagine wanting to travel to the Phillippines after being diagnosed with lung cancer. My original post above asked for input from people who used healthcare sharing ministries during an expensive medical crisis, such as lung or breast cancer. I'm still waiting to hear from someone who's been through that because they would be the only true experts.

HIinvestor
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Re: Health Insurance for Retirees, % escalation

Post by HIinvestor » Mon Jul 02, 2018 12:19 pm

Here’s an article about someone who ended up with a 5 figure uncovered Medí-share bill for cancer—but did ultimately get it covered. Buyer beware!

https://www.google.com/amp/s/m.huffpost ... d6754b/amp
Last edited by HIinvestor on Mon Jul 02, 2018 12:55 pm, edited 1 time in total.

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FrugalInvestor
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Re: Health Insurance for Retirees, % escalation

Post by FrugalInvestor » Mon Jul 02, 2018 12:49 pm

HIinvestor wrote:
Mon Jul 02, 2018 12:19 pm
Here’s an article about someone who ended up with a 5 figure uncovered Medí-share bill for cancer. Buyer beware!

https://www.google.com/amp/s/m.huffpost ... d6754b/amp
In fairness they did not 'end up' with the 5-figure bill, it was initially refused but then covered as a result of them going through the appeals process. I'm not a big fan of medishare plans but the facts should not be distorted.

My wife and I were on ACA coverage (she still is) and due to incompetence and convoluted rules/red-tape of the Federal marketplace our insurance was cancelled - a terribly stressful experience that could have been financially devastating had either one of us had a serious medical problem during that time period. As it turned out we also prevailed in through the ACA appeals process (although we never could get them to send us the required paperwork to support our tax filing).

My point is that there are likely horror stories no matter what system you're under. As I said previously, I'm not a fan of medishare plans and would not use one unless it was an absolute last resort (although I've researched them), but in the case you point out things actually turned out pretty well. If I had any other choice for my wife I wouldn't choose an ACA plan either.
IGNORE the noise! | Our life is frittered away by detail... simplify, simplify. - Henry David Thoreau

HIinvestor
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Re: Health Insurance for Retirees, % escalation

Post by HIinvestor » Mon Jul 02, 2018 1:01 pm

Thanks—you make a good point that ultimately after appeals THIS batch of bills were covered. It is important to read the fine print and understand what is and is not covered and understand you may have to fight no matter what plan you have.

We have excellent coverage with FEHB but have had to fight for coverage from time to time. I would be very nervous about medshare plans. They don’t have as much ability to spread expensive costs across as many folks as insurance. What happens when several members need expensive cancer treatments or transplants in the same year? Cancer treatments can run into 6+ figures for ONE patient.
Last edited by HIinvestor on Mon Jul 02, 2018 1:03 pm, edited 3 times in total.

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FIREchief
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Re: Health Insurance for Retirees, % escalation

Post by FIREchief » Mon Jul 02, 2018 1:01 pm

Back on topic...…

OP: I am currently assuming approximately 8% for annual increases in pre-Medicare retiree health insurance premiums. That said, Megacorp is a strange and unpredictable beast, so who knows??? :confused

I believe that Megacorp early retirees as a group are generally an attractive risk pool for insurance companies, so I'm hoping that will help to avoid anything crazy.
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

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midareff
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Re: Health Insurance for Retirees, % escalation

Post by midareff » Mon Jul 02, 2018 2:53 pm

willthrill81 wrote:
Mon Jul 02, 2018 10:02 am
midareff wrote:
Mon Jul 02, 2018 7:52 am
willthrill81 wrote:
Sun Jul 01, 2018 10:44 pm


If you're reasonably healthy, you might want to look into the healthcare sharing ministries out there. They can be a fraction of the cost of a health insurance plan and have been solid options for many people for many years now.
The problem is that you are reasonably healthy until the day you aren't, and then you are stuck with what you have.
Not necessarily. You might get a part-time job with one of the employers out there that offers health insurance to part-time employees. Or in the case of the OP, you make do until you are eligible for Medicare. Or you become a medical tourist. Even with healthcare, there are almost always options.
Sorry Will but that's just inaccurate. I'll give you a real life example...... on June 17th (this year) I experienced an emergency medical issue that was judged very high risk for a heart attack and/or stroke. At the time I was in Odesa Ukraine on a cruise ship. My options did not include waiting until I get Medicare, which I already have, or getting a part time job or becoming a medical tourist. My options were going to the nearest hospital for treatment or risking a potentially life ending result. Those are not options. My Medicare Supplement has Emergency out of country coverage so I am somewhat gladly stuck with what I got. No shopping around here.

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zzcooper123
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Re: Health Insurance for Retirees, % escalation

Post by zzcooper123 » Mon Jul 02, 2018 3:15 pm

https://wealthyaccountant.com/2017/12/1 ... re-crisis/

What do bogleheads think of this approach?

Are you waiting for an Association Health Plan, maybe available in the Fall?

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willthrill81
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Re: Health Insurance for Retirees, % escalation

Post by willthrill81 » Mon Jul 02, 2018 3:48 pm

midareff wrote:
Mon Jul 02, 2018 2:53 pm
willthrill81 wrote:
Mon Jul 02, 2018 10:02 am
midareff wrote:
Mon Jul 02, 2018 7:52 am
willthrill81 wrote:
Sun Jul 01, 2018 10:44 pm


If you're reasonably healthy, you might want to look into the healthcare sharing ministries out there. They can be a fraction of the cost of a health insurance plan and have been solid options for many people for many years now.
The problem is that you are reasonably healthy until the day you aren't, and then you are stuck with what you have.
Not necessarily. You might get a part-time job with one of the employers out there that offers health insurance to part-time employees. Or in the case of the OP, you make do until you are eligible for Medicare. Or you become a medical tourist. Even with healthcare, there are almost always options.
Sorry Will but that's just inaccurate. I'll give you a real life example...... on June 17th (this year) I experienced an emergency medical issue that was judged very high risk for a heart attack and/or stroke. At the time I was in Odesa Ukraine on a cruise ship. My options did not include waiting until I get Medicare, which I already have, or getting a part time job or becoming a medical tourist. My options were going to the nearest hospital for treatment or risking a potentially life ending result. Those are not options. My Medicare Supplement has Emergency out of country coverage so I am somewhat gladly stuck with what I got. No shopping around here.
Thanks for relaying your experience. In that instance, healthcare insurance (or sharing, or whatever) was not the issue; it was receiving healthcare. Receiving healthcare is not at all the same thing as how it's paid for. I thought it was understood that we were talking about the latter.

And travelers' medical insurance is available.

I'm guessing you didn't read my post where I noted that I personally know individuals who have/had chronic health issues yet continued to work/travel.
“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

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willthrill81
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Location: USA

Re: Health Insurance for Retirees, % escalation

Post by willthrill81 » Mon Jul 02, 2018 3:55 pm

zzcooper123 wrote:
Mon Jul 02, 2018 3:15 pm
https://wealthyaccountant.com/2017/12/1 ... re-crisis/

What do bogleheads think of this approach?
Given that the mere mention of health sharing sent many here into a feeding frenzy, I'd say that they aren't likely to like his strategy, though it looks sound to me. He is also a proponent of medical tourism.
“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

Rupert
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Re: Health Insurance for Retirees, % escalation

Post by Rupert » Mon Jul 02, 2018 4:17 pm

willthrill81 wrote:
Mon Jul 02, 2018 3:55 pm
zzcooper123 wrote:
Mon Jul 02, 2018 3:15 pm
https://wealthyaccountant.com/2017/12/1 ... re-crisis/

What do bogleheads think of this approach?
Given that the mere mention of health sharing sent many here into a feeding frenzy, I'd say that they aren't likely to like his strategy, though it looks sound to me. He is also a proponent of medical tourism.
That wasn't a feeding frenzy. Try to sell us some whole life insurance, and you'll experience a feeding frenzy. I would just like some evidence that these plans pay when it really matters. Even anecdotal evidence from a confirmed and honest Boglehead would be good enough for me. My suspicion is that people who buy into these healthcare sharing ministries purchase mainstream health insurance as soon as possible after developing serious, expensive medical conditions, which would make them freeriders. I wouldn't irritate me a bit to be proven wrong about that. That article linked above (which overall I found to be a very slanted article, even though I agree with its conclusion) does point out the primary problem with these ministry plans and other so-called alternatives to the ACA, which is they make everyone else's insurance more expensive by siphoning off a lot of healthy people. It's not the biggest problem our healthcare system faces, but it's a problem.

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midareff
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Re: Health Insurance for Retirees, % escalation

Post by midareff » Mon Jul 02, 2018 5:21 pm

willthrill81 wrote:
Mon Jul 02, 2018 3:48 pm
midareff wrote:
Mon Jul 02, 2018 2:53 pm
willthrill81 wrote:
Mon Jul 02, 2018 10:02 am
midareff wrote:
Mon Jul 02, 2018 7:52 am
willthrill81 wrote:
Sun Jul 01, 2018 10:44 pm


If you're reasonably healthy, you might want to look into the healthcare sharing ministries out there. They can be a fraction of the cost of a health insurance plan and have been solid options for many people for many years now.
The problem is that you are reasonably healthy until the day you aren't, and then you are stuck with what you have.
Not necessarily. You might get a part-time job with one of the employers out there that offers health insurance to part-time employees. Or in the case of the OP, you make do until you are eligible for Medicare. Or you become a medical tourist. Even with healthcare, there are almost always options.
Sorry Will but that's just inaccurate. I'll give you a real life example...... on June 17th (this year) I experienced an emergency medical issue that was judged very high risk for a heart attack and/or stroke. At the time I was in Odesa Ukraine on a cruise ship. My options did not include waiting until I get Medicare, which I already have, or getting a part time job or becoming a medical tourist. My options were going to the nearest hospital for treatment or risking a potentially life ending result. Those are not options. My Medicare Supplement has Emergency out of country coverage so I am somewhat gladly stuck with what I got. No shopping around here.
Thanks for relaying your experience. In that instance, healthcare insurance (or sharing, or whatever) was not the issue; it was receiving healthcare. Receiving healthcare is not at all the same thing as how it's paid for. I thought it was understood that we were talking about the latter.

And travelers' medical insurance is available.

I'm guessing you didn't read my post where I noted that I personally know individuals who have/had chronic health issues yet continued to work/travel.
Actually, it was a perfect example of exactly what I posted in my original comment. "The problem is that you are reasonably healthy until the day you aren't, and then you are stuck with what you have." In this case I'm "stuck" with a $250 deductible and 20% of the rest, the supplement covering 80%.

Chip
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Joined: Wed Feb 21, 2007 4:57 am

Re: Health Insurance for Retirees, % escalation

Post by Chip » Tue Jul 03, 2018 5:09 am

Megacorp retiree premiums for us have increased an average of 5.2%/year since 2002. I think that the company policy has been that retirees pay 1/3 of the actual premium cost while Megacorp pays 2/3.

This obviously doesn't include changes to the plan, which have generally been to shift more cost to the retiree via higher deductibles, etc. I haven't looked up the precise numbers but I think that if I factor in the increase in the deductible (which is pretty low, so we hit it every year), the increase is closer to 6.5%/year over the same period.

TwstdSista
Posts: 987
Joined: Thu Nov 16, 2017 4:03 am

Re: Health Insurance for Retirees, % escalation

Post by TwstdSista » Tue Jul 03, 2018 5:20 am

We've been on marketplace health insurance (mid-40's non-smoking couple).

Year 1: $850/month for a bronze plan
Year 2: $650/month for a silver plan
Year 3: $650/month for a silver plan
Year 4: $750/month for a silver plan
Year 5: $1250/month for a silver plan ($1000/month for a bronze plan)

Take that for what you will....

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