Health Insurance question for early retiree

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Barefootgirl
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Health Insurance question for early retiree

Post by Barefootgirl » Wed May 15, 2019 9:56 am

My 59 year old sister is wanting to retire early. If/when she quits her job and any COBRA is past her - she will lose health insurance. Assuming she gets onto another plan until Medicare kicks in, how much should I advise her it would cost? (approximately) her health is good for her age.

I cannot use my data to go by since I am a fed employee.
How many retired people does it take to screw in a lightbulb? Only one, but he takes all day.

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dm200
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Re: Health Insurance question for early retiree

Post by dm200 » Wed May 15, 2019 9:59 am

Barefootgirl wrote:
Wed May 15, 2019 9:56 am
My 59 year old sister is wanting to retire early. If/when she quits her job and any COBRA is past her - she will lose health insurance. Assuming she gets onto another plan until Medicare kicks in, how much should I advise her it would cost? (approximately) her health is good for her age.

I cannot use my data to go by since I am a fed employee.
A LOT. :(

The COBRA amount should give her an idea - if she can find that out before she makes a decision.

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samsoes
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Re: Health Insurance question for early retiree

Post by samsoes » Wed May 15, 2019 10:10 am

If she can manage her income to be in the ACA "sweet spot," the available subsidies will reduce the premium significantly. Like, to less than $100/month. Extreme care must be taken not to go over the upper limit by even $1, or thousands if dollars in subsidies will be lost.

For example, in my county in Connecticut, someone my age will pay next to nothing in premiums if my annual income (MAGI) is above $16703, but not much higher.

Premiums rise (subsidies decrease) and cost sharing reductions decrease as MAGI increases. Once MAGI increases to $48561, over $6000 in remaining premium subsidies disappear.
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dm200
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Re: Health Insurance question for early retiree

Post by dm200 » Wed May 15, 2019 10:13 am

samsoes wrote:
Wed May 15, 2019 10:10 am
If she can manage her income to be in the ACA "sweet spot," the available subsidies will reduce the premium significantly. Like, to less than $100/month. Extreme care must be taken not to go over the upper limit by even $1, or thousands if dollars in subsidies will be lost.
For example, in my county in Connecticut, someone my age will pay next to nothing in premiums if my annual income (MAGI) is above $16703, but not much higher.
Premiums rise (subsidies decrease) and cost sharing reductions decrease as MAGI increases. Once MAGI increases to $48561, over $6000 in remaining premium subsidies disappear.
In most states, at her age she will pay quite a bit more than a young person or even middle age. In a few states, though, premiums may not be age based. So, her state of residence can make a big difference.

mhalley
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Re: Health Insurance question for early retiree

Post by mhalley » Wed May 15, 2019 10:15 am

It varies a lot by zip code. She can go to healthcare.gov and put in different birth years to see what it would be at 64. My non subsidized hsa bronze plan is $1423 this year at 64, $2845 together for my wife and I. Who knows how much longer subsidies will last, so she should figure on cost without them, just as some figure on lowered ss.

cas
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Re: Health Insurance question for early retiree

Post by cas » Wed May 15, 2019 10:18 am

Barefootgirl wrote:
Wed May 15, 2019 9:56 am
Assuming she gets onto another plan until Medicare kicks in, how much should I advise her it would cost? (approximately)
If her state uses the federal health insurance exchange, this tool will show her the price of ACA plans available in her county. (This is not the whole ACA application. It is an anonymous tool that lets her put in minimal information necessary for calculating her personalized premium for various plans (e.g. zip code, age, approx income for use in calculating what her premium subsidy (if any) would be).

https://www.healthcare.gov/see-plans/

If her state implemented its own exchange, she should look there to see if it has a similar tool.

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dm200
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Re: Health Insurance question for early retiree

Post by dm200 » Wed May 15, 2019 10:24 am

I don't know how common this is, but sometimes an employer's plan (including COBRA) allows transition of former employees to an individual plan in a seamless way. Many years ago, this was a feature of the plan of my former employer.

michaeljc70
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Re: Health Insurance question for early retiree

Post by michaeljc70 » Wed May 15, 2019 10:35 am

Without knowing her income, where she lives and what kind of plan she wants we'd just be guessing. As others said, there are tools out there that calculate subsidies and you can browse plans on the exchange website (as well as estimate the subsidy there).

bkweathe
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Re: Health Insurance question for early retiree

Post by bkweathe » Wed May 15, 2019 1:08 pm

If you sister is a Christian, I suggest investigating healthcare cost-sharing ministries like Christian Healthcare Ministry, Medi-share, and Samaritan Ministries. All of these organizations that I know of require that members be Christian.

I just signed up for CHM. The cost is low and the coverage seems to be very good, though I haven't needed to use it yet.

Moderators: I know that discussion of religion is normally forbidden on this forum. I hope you'll allow it in this case because it is relevant to the question at hand.

Brad

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