Pre-existing condition + insurance in retirement

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OCDinvestor
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Pre-existing condition + insurance in retirement

Post by OCDinvestor » Thu May 09, 2019 2:21 pm

Long time stalker, first time BH poster!

I'm an employee in the beginning of my career and am fortunate to be given very good group health insurance. We've talked about one day perhaps retiring in our 50's, given our aggressive saving habits and travel interests. I do have a pre-existing health condition that requires routine doctor appointments and the occasional surgery.

Is it even feasible to retire from my job before medicare kicks in?

Would I even be offered private health insurance prior to medicare?

What about after I receive medicare, how would I cover the secondary insurance (assuming I'm retired at that point)?

Am I destined to work, perhaps part-time, until the rest of my life??

dbr
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Re: Pre-existing condition + insurance in retirement

Post by dbr » Thu May 09, 2019 5:40 pm

OCDinvestor wrote:
Thu May 09, 2019 2:21 pm

What about after I receive medicare, how would I cover the secondary insurance (assuming I'm retired at that point)?
On this question see here: https://www.medicare.gov/supplements-ot ... uy-medigap Note the important thing is to buy a Medigap policy at the same time you start Medicare. You would have to investigate some of the other options such as an Advantage plan or the possibility that employer supplied secondary insurance might be available.

Broken Man 1999
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Re: Pre-existing condition + insurance in retirement

Post by Broken Man 1999 » Thu May 09, 2019 5:47 pm

I have to believe insurance might look much different in the span of time you are facing.

About all you can reasonably do is to stuff your savings/investments as full as you can.

No shame in oversaving unless you are forgetting, or choosing to not enjoy the journey as you go through life.

IOW live a good life while working.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven than I shall not go. " -Mark Twain

jdilla1107
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Re: Pre-existing condition + insurance in retirement

Post by jdilla1107 » Thu May 09, 2019 6:29 pm

The ACA (Obamacare) makes it so the answer is "yes, you can absolutely get private insurance". You will also not pay higher prices based on pre-existing conditions and only your age will be used to determine prices. You can get an ACA quote right now from many different sites. You can also get tax credits if you keep your income low enough in early retirement.

If you don't have a tax credit, the ACA can be pretty expensive. I am in my 40s and semi-retired/self-employed. I pay $1,400 a month for a family of 4. This is for a high deductible plan with an HSA. A non-high deductible plan would be more like $1,900 for me. In my experience, these prices are very similar to what companies pay for their employees.

If you can find a away to make a little bit of money through self-employment in early retirement, you can deduct these costs as self-employed health insurance, which is what I do. The tax credit also helps a lot if you can keep your income low. (Family of 4 gets a credit of about $7k at around $95k of MAGI)

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Nate79
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Re: Pre-existing condition + insurance in retirement

Post by Nate79 » Thu May 09, 2019 6:38 pm

How many years in the future are we talking about here? If more than a few don't kid yourself- anything can change.

adamthesmythe
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Re: Pre-existing condition + insurance in retirement

Post by adamthesmythe » Thu May 09, 2019 6:50 pm

Very difficult to say this far into the future. Right NOW you would have access through the ACA, possibly at high price depending on your income at the time, and right NOW insurance cannot be denied for pre-existing conditions. If you have been paying attention to the news you know that the future of the ACA is rather uncertain.

Not retiring early (that is, before Medicare is available to you) and continuing to work in a job that provides health insurance is the most certain way to maintain insurance.

Hate to say it, but health care is the big bad elephant in the room when it comes to early retirement. And (to mix metaphors) it has become a big political football.

Topic Author
OCDinvestor
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Re: Pre-existing condition + insurance in retirement

Post by OCDinvestor » Thu May 09, 2019 7:43 pm

Thanks for the replies. As my username implies, I’m quite OCD and retirement is realistically still 20-25 years down the road. Just always worrying!

However if there is significant issues with obtaining secondary insurance once Medicare kicks in, it would change my estimated nest egg req’t. Which would affect my savings today.

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Nate79
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Re: Pre-existing condition + insurance in retirement

Post by Nate79 » Thu May 09, 2019 7:55 pm

OCDinvestor wrote:
Thu May 09, 2019 7:43 pm
Thanks for the replies. As my username implies, I’m quite OCD and retirement is realistically still 20-25 years down the road. Just always worrying!

However if there is significant issues with obtaining secondary insurance once Medicare kicks in, it would change my estimated nest egg req’t. Which would affect my savings today.
Ask your question in 20 years and it may be relevant.

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knpstr
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Re: Pre-existing condition + insurance in retirement

Post by knpstr » Thu May 09, 2019 9:24 pm

OCDinvestor wrote:
Thu May 09, 2019 2:21 pm
Long time stalker, first time BH poster!

I'm an employee in the beginning of my career and am fortunate to be given very good group health insurance. We've talked about one day perhaps retiring in our 50's, given our aggressive saving habits and travel interests. I do have a pre-existing health condition that requires routine doctor appointments and the occasional surgery.

Would I even be offered private health insurance prior to medicare?
Yes, you can get insurance today with a pre-existing condition at no "extra premium cost" due to your condition.
None of your doctor's appointments for the condition will be covered until the deductible is met.
Very little is needed to make a happy life; it is all within yourself, in your way of thinking. -Marcus Aurelius

bhsince87
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Re: Pre-existing condition + insurance in retirement

Post by bhsince87 » Thu May 09, 2019 9:31 pm

I retired Jan 1 at age 53. Currently covered under my wife's insurance, which will turn to COBRA in July when she retires.

We have lots of "pre-existing conditions".

And we have no idea what our health insurance options will be even next year.

My point is, do not waste a minute of your time worrying about this.

It's waaaaaayyyyy too far in the future for you.
"If ye love wealth better than liberty, the tranquility of servitude better than the animating contest of freedom, go home from us in peace." Samuel Adams

BrooklynInvest
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Re: Pre-existing condition + insurance in retirement

Post by BrooklynInvest » Thu May 09, 2019 9:37 pm

A great question. My planned early retirement (in three years) is unfortunately pre-existing condition dependent. My corporate insurance, while expensive ensures my wife's preexisting conditions are covered. This in turn allows her to run a successful small business but without guaranteed coverage either I don't retire or she closes her business and heads back to the corporate world for 25% or so of the money she's making now. A kick in the wallet to be sure.

For you things could change and change back several times. I'm hopeful we'll catch up to the rest of the world on this one.

random_walker_77
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Re: Pre-existing condition + insurance in retirement

Post by random_walker_77 » Thu May 09, 2019 9:56 pm

You're at the beginning of your career, so you probably don't recall what things were like before ACA. And really, back then most people didn't understand how private insurance really works, given that health insurance for the majority of folks is tied to their employer. If you weren't under an employer's plan, even if you were healthy, insurance effectively stayed cheap only if you stayed healthy. Once you developed a condition, you'd get charged more by any other plan, oftentimes prohibitively more, so you'd be stuck in that plan. But due to the way group pools work, plans get more expensive after a few years, because those who are unhealthy stick around, and those who are healthy leave for a new (cheaper) group plan comprised of relatively healthy people. Quoting wikipedia (https://en.wikipedia.org/wiki/Death_spiral_(insurance) )
Through the process of "group re-underwriting", as healthy people transfer to new pools, the insurer is able to keep down the premiums of their health plans at the cost of increasing premiums for those who later on become sick. During the lifetime of a specific risk pool, the sick end up bearing an increasing share of their medical costs, negating the benefits of signing up for health insurance in the first place.
It's kind of an awful situation, but didn't matter to most people, who were covered by their employer. Of course, if they got sick enough that they had to stop working, then things get rough...

Today, under the ACA, you're fine. There's no surcharge for pre-existing conditions. Of course, if you've been reading the news, you know that it's controversial and could change. Even if it did, you would also have the option of retiring to another country where medical care is reasonably affordable.

SoAnyway
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Re: Pre-existing condition + insurance in retirement

Post by SoAnyway » Fri May 10, 2019 2:23 am

bhsince87 wrote:
Thu May 09, 2019 9:31 pm
I retired Jan 1 at age 53. Currently covered under my wife's insurance, which will turn to COBRA in July when she retires.
We have lots of "pre-existing conditions".
And we have no idea what our health insurance options will be even next year.
My point is, do not waste a minute of your time worrying about this.
It's waaaaaayyyyy too far in the future for you.
+1. OP, Welcome to the forum! It's great that you're thinking so far down the field at this early stage of your career but bhsince87 is right: A LOTcan (and likely will) change on the healthcare/tax policy front - not to mention your own personal situations (e.g. kids/aging parents/job opportunities/debilitating accident/etc.) between now and your potential retirement in your 50s. Do NOT assume that anything will be as it now.

SoAnyway.... Don't waste your precious time and energy on FUD factors (Fear/Uncertainty/Doubt) about things that are unknown and completely outside your control and that are nearly guaranteed to change between now and when you're in your 50s. Instead, as others upthread have said, direct that mental/emotional energy toward things that ARE within your control: Your career, spending time with those close to you, your physical health, your financial health.
Nothing in this post constitutes legal or medical advice. | Consult your attorney or physician to verify if/how anything stated might or might not be applicable to your specific situation.

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dm200
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Re: Pre-existing condition + insurance in retirement

Post by dm200 » Fri May 10, 2019 8:34 am

Once you become fully insured - and stay with that insurer, then "pre-existing condition" is not relevant.

Before you are Medicare eligible, insurance will be quite expensive if you are not employed with coverage.

When you approach Medicare eligibility, I suggest fully evaluating Medicare Advantage plans available to you.

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