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PRE-RETIREES: Early retirement and medical insurance

#1
How, with high cost, high deductibles and pre-existing condition exclusions, do you plan to deal with coverage until you are medicare eligible?
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#2
Hi,  Just retired last month at 57 years old.  My company offers Cobra for 18 months which still runs $1000 a month for a high deductible HSA plan.  Once Cobra runs out, I will be paying $1500 a month for a high deductible HSA plan.  It is by far my highest expense in retirement.  I checked the government health plans in my area and they were around $2000 a month.  This is for my wife and I.  We stay healthy by working out 5 days a week.  If I had medical conditions, it most likely force me into a higher medical plan which would have been double.  I wish I had a better answer for medical insurance. 
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#3
My wife and I retired last year at ages 62 and 57.  She is diabetic.  We use Aliera Healthcare which is technically not an insurance company but met ACA requirements.  Downside is they do not pick up pre-existing conditions for 2 years.  Upside is it is national which was important for us as we live full-time in a motorhome and travel.  Their broad network allowed us to keep our current doctors who we will go to for our annual physicals.  We pay about $682 a month with a $5,000 deductible.  They have been pretty good to work with.  You can get info at https://www.alierahealthcare.com/
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#4
Those are just some of the conditions required by CHM.  One must follow the teaching of the New Testament in its entirety.  One cannot be using illegal drugs (Federal law still lists marijuana as a schedule 1 drug).

The $150/mo mentioned doesn't cover catastrophic illnesses (single illness where care costs in excess of $125K), though one can buy into the equivalent for a relatively modest additional quarterly contribution.   The point is not that this adds so much to the cost but rather that one should do adequate research (aka due diligence) before signing up.

See, e.g. this 2018 PBS report, 1 million Americans pool money in religious ministries to pay for health care

Clearly a million people feel this can work for them.

 

Though the payments may be described as contributions, they're generally not tax deductible - not as medical expenses and not as charitable contributions:

 
The monthly share payment is not deductible for federal income tax purposes as either a medical expense (because it is not a payment for insurance under Sec. 213(d)(1)(D)) or as a charitable deduction (because it is a payment in consideration for goods or services). However, members’ payments in excess of their required monthly minimum may be deductible as a charitable contribution. Members do not qualify for the premium tax credit of Sec. 36B, which applies only to coverage under a qualified health plan, or for federal tax subsidies for employment-related insurance under PPACA. Health reimbursement arrangements or Sec. 125 cafeteria plan deferrals cannot be used to reimburse individuals for share payments because they are not medical expenses as defined under Sec. 213; however, they can be used to pay medical expenses paid directly by the taxpayer, such as co-pays, prescriptions, and preventive care as permitted by Sec. 213.

Maintenance (as opposed to curative) drugs are not covered after 90 days.  (AFAIK, this rules out coverage for diabetes medication, including insulin.)

    Prescriptions for a chronic condition can be considered for sharing only if there is a change in medication or dosage and they are part of a qualifying incident.   The expense is shared until 90 days elapse without a change in medication or dosage, at which time the prescription is considered maintenance medication and therefore no longer eligible for sharing.
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#5
This is not an answer but more of a commiseration. I retired at 59 then went on COBRA. Now I am using Florida Blue paying $2,400/Mo with a $7K deductible per person. My wife has had some medical issues so I don't want to be caught short on insurance but the costs are brutal.
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#6
(12-19-2018, 07:09 AM)Ynari Wrote: This is not an answer but more of a commiseration. I retired at 59 then went on COBRA.  Now I am using Florida Blue paying $2,400/Mo with a $7K deductible per person. My wife has had some medical issues so I don't want to be caught short on insurance but the costs are brutal.

 
That's awful...you can expect to pay a minimum  $35.800 per year before insurance kicks in?
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#7
I retire later this year in my mid-50s. We’ll use COBRA as an initial bridge. Thereafter, we’ll be spending about $30K per year for health insurance for 3 individuals, including Medicare premiums for one family member who is eligible due to a disability.
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#8
I plan to keep working until 65 and maybe 67, healthcare costs being one of the drivers.

Plus I really enjoy my work and I think I might get bored in retirement.
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#9
(06-17-2020, 01:19 PM)frugal_c Wrote: I plan to keep working until 65 and maybe 67, healthcare costs being one of the drivers.

Plus I really enjoy my work and I think I might get bored in retirement.

I am doing the same thing, I am 66 and am in a very good job situation. Keeping the healthcare benefits for my wife and I for $250/month is great compared to what I read above. We have a lot of freedom to travel which we do so at this point I do not have a date for retirement, all is to good.
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