Author Topic: Help me out with healthcare!  (Read 1168 times)

Fire1018

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Help me out with healthcare!
« on: May 20, 2022, 08:54:07 PM »
Well it looks like I'm about to FIRE next month and I don't have my healthcare nailed down yet...

I am a veteran covered by VA healthcare, fully enrolled and using that system.

I am currently using my employers healthcare as the primary for myself and my family.

DW is disabled on SSDI using Medicare as a secondary insurance.  She has very recently has some additional serious medical conditions pop up that are under investigation so future medical bills are expected to be high for a little while.

I have two kids currently covered by my employers plan.

I'm planning on FATFIRE but the market has been pretty crazy lately, so I want to be as conservative as possible with my spending.  Current spending is pretty high because I have two clown car payments at near zero interest and two other short term zero interest loans.  Once those bills are gone I can get my expenses pretty low and I'll have reliable transportation for the next decade or so!

It looks like there are no subsidy caps for the affordable care act for this year, so my severance package will be OK, but I probably don't qualify for healthcare subsidies due to VA coverage.

It looks like I'll need some supplemental coverage to fill in the gaps for DWs Medicare.

I'm not too sure what to do about the kids yet.  We live in Michigan and my severance package will probably kick us out of CHIP or anything like that.  I'm not sure on this though.

I was planning on just keeping COBRA for a few months because all the deductibles are met and the coverage would stay the same until we figure out what's going on with DW, but HR is taking their sweet time to get me the COBRA quotes so I don't know what they will be.

I'm also behind the 8 ball because I don't have my healthcare.gov account set up yet or any quotes for that.

I know we can't make decisions without all the quotes, but what kind of recommendations do you have?

Should I just continue with COBRA until we get my wife's new problems all squared away?

Should we hop right into the exchange now?

Can I get a subsidized plan that just covers my wife and kids while I use the VA?

Are there special Medicare supplemental plans that I need for my wife, then something else I can get for my kids?

Any help would be GREATLY appreciated!  Thanks!

Sibley

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Re: Help me out with healthcare!
« Reply #1 on: May 20, 2022, 10:09:45 PM »
For Cobra, go back to your open enrollment documents. The monthly premium is often listed in there, along with the breakdown of what the company and employee pays.

Fire1018

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Re: Help me out with healthcare!
« Reply #2 on: May 21, 2022, 06:30:50 AM »
Thanks!  I believe I have electronic copies of those!

Dicey

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Re: Help me out with healthcare!
« Reply #3 on: May 21, 2022, 08:57:12 AM »
There are people who specialize in Healthcare coverage. Someone here has given recommendations before, but I don't remember who it was. Perhaps @lhamo knows?

firestarter2018

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Re: Help me out with healthcare!
« Reply #4 on: May 21, 2022, 10:53:51 AM »
If the employer insurance premiums aren't on your open enrollment materials (my company always just shows the employee's share, not the employer's), check your W-2 from last year -- employers now have to report the total value of health insurance premiums on there. I think it's box 12.

For the Exchange, here's a site that will estimate any subsidies you might be entitled to based on your income: https://www.kff.org/interactive/subsidy-calculator/

So that's a useful starting point- but to get real data you'll need to sign up on your state's Exchange website and start getting quotes. Depending on how generous your employer coverage is and what kind of subsidies you're eligible for, your ACA premiums may actually be cheaper than your employer coverage, but generally your deductible and OOP max will be higher.  But you really have to check on the specifics because it varies a lot state by state.  I've mentioned this before but I've run estimates for states with lots of insurance carriers participating in the Exchange, vs states where there's only one or two companies, and the differences in cost for the coverage provided are striking.

Continuing with COBRA for a few months while you sort out all your options will be expensive but easy, as long as your company sends you the forms to fill out in a timely way. But honestly, since your situation is a bit complicated (wife on Medicare, severance, kids needing coverage), you might want to google "independent health insurance brokers" and your state to see if there's someone who could walk you through your options. Generally these brokers get paid by the carrier that you end up choosing, so you may not have to pay anything. Just an idea to look into.

Fire1018

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Re: Help me out with healthcare!
« Reply #5 on: May 21, 2022, 10:15:25 PM »
Box 12 of my W-2 says the healthcare cost is over $27K!  I better start looking for an insurance broker!  Thanks for the help!  Still no official COBRA estimate from HR.

feelingroovy

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Re: Help me out with healthcare!
« Reply #6 on: May 22, 2022, 06:19:05 AM »
This all varies a lot across states, so YMMV. But a few things I've come across that might be true where you are.

Independent insurance brokers don't get paid if you purchase on the exchange, so they aren't all that knowledgeable about those plans. At least that's what my broker said a few years ago.

In my state kids can be on CHIP at any income level. It just costs more at higher income levels.