Author Topic: Case Study - how much should I worry about health care?  (Read 1277 times)

hydra

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Case Study - how much should I worry about health care?
« on: June 12, 2018, 06:41:44 PM »
My age 50, husband 60, 1 child finishing up junior year of high school.

Gross Salary (including bonuses and stock)--$700K
Within the last couple of years, we both nearly doubled our income, having moved from smaller companies to a big one that is wildly overpaying us.

Tax-deferred savings: ~800K
Taxable savings: ~1.4 million
Total: 2.2M

College savings for our child: ~260K (not included in savings above)
Paid off home worth ~650K (we stayed in our "starter" home.)

Rental Income: ~25K/year (not included in gross income above).

Am likely to inherit mortgage-free real estate worth ~800K.

No debt at all.

Spending: ~120K/year (we live in a high COL area).
Includes travel, clothes, food, home improvements, and pricy summer camps.
We could cut this down, but I don't really want to.

We're currently shoving about $300K/year into savings, including employer 401K match. When our incomes doubled, we didn't much change our lifestyle very much, so we have a big surplus every month. We are invested with moderate to low risk: mostly index funds with some cash, bonds, and long-term CDs. Would like to hit 3 million in a couple years from now and then retire. The job is fine, but I'm pretty tired of it. Have been doing it what feels like a long time, and am eager to develop different talents. That said, it's tempting to stay where I am and keep being lavishly overpaid like a spoiled lap dog.

Specific Question: How much should I worry about health insurance now and into the future? I'm currently healthy, but my DH is receiving high-cost treatment for a condition. We currently have excellent insurance through our employer. I see in the news that the justice dept is trying to mess with Obamacare's preexisting condition clause, and I'm starting to worry.

Paul der Krake

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Re: Case Study - how much should I worry about health care?
« Reply #1 on: June 12, 2018, 06:54:23 PM »
No one knows. Many of us are speculating over at this thread, currently standing at 88 pages:
https://forum.mrmoneymustache.com/welcome-to-the-forum/what-comes-after-the-aca/

Given your assets and income, you're probably in the group of people that should be least worried.

maizeman

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Re: Case Study - how much should I worry about health care?
« Reply #2 on: June 12, 2018, 07:14:21 PM »
Specific Question: How much should I worry about health insurance now and into the future? I'm currently healthy, but my DH is receiving high-cost treatment for a condition. We currently have excellent insurance through our employer. I see in the news that the justice dept is trying to mess with Obamacare's preexisting condition clause, and I'm starting to worry.

Are you planning to both retire in the next five years? If not, your husband will be old enough to qualify for medicare, at which point concerns about pre-existing conditions coming back to the commercial health insurance market shouldn't be an issue for your household personally anymore.

hydra

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Re: Case Study - how much should I worry about health care?
« Reply #3 on: June 12, 2018, 11:12:07 PM »
Thanks for the link. The thread is super interesting.

Yes, I'd like us both to retire at the same time, in around two years. DH won't be 65 yet, though he will be close.
I'll only be 52, so I'm more concerned about my situation. I wish we lived in a more humanistic country.

avedaprincess

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Re: Case Study - how much should I worry about health care?
« Reply #4 on: June 24, 2018, 10:26:21 AM »
what field are you in? I would love for my husband and I to make salaries like that!

RedwoodDreams

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Re: Case Study - how much should I worry about health care?
« Reply #5 on: June 24, 2018, 07:59:52 PM »
Do either of your employers offer retiree health insurance? Mine does, and it's a horrifying $1600 per person, BUT in your situation, it's perhaps more important to maintain health insurance until Medicare age and *at least* it puts some boundaries around your out of pocket annual costs.

Still, shudder. The pre existing condition thing is huge.

I hope it doesn't happen, but if your husband's condition makes him eligible for SSDI eventually, he would also be eligible for Medicare within two years.

There's also COBRA coverage, I think that can last 18 months. That can be another bridge...

If your child goes to college, I think usually kids can get some kind of coverage through their school?

Beyond that, because ACA isn't means tested, if you can make your income look lower, you might qualify for a subsidy. You can have 10 million in the bank, but in CA for example, if you can live on 65k, you're eligible for a subsidy.

It's incredible, but despite the fact that you've done a superb job of earning and saving, without health insurance, expensive medical conditions can still be so be devastating. We live in such a weird and confused country.