Cost of health insurance options?

[oldtoyota]

How do people cover health insurance when retiring early?

We are not government workers so can’t get it that way.

I tried to get pricing so I can create cost projections but the prices are all over the place, and there’s no guarantee regarding size of cost increases.

I’m in the US and hoping to find a decent solution.

[geekette]

You keep your income low and sign up with the ACA.  There's still absolutely no guarantee regarding cost or increases, but it's been very good for early retirees for years. 

[boarder42]

How do people cover health insurance when retiring early?

We are not government workers so can’t get it that way.

I tried to get pricing so I can create cost projections but the prices are all over the place, and there’s no guarantee regarding size of cost increases.

I’m in the US and hoping to find a decent solution.

Most use the ACA other options include healthshare which mmm covered in a recent blog post. You can estimate your costs for the ACA on healthcare.gov. Healthshare cost are easily calculated on the website that host them. For a family of 4 we're planning for 6k worst case and 0 best case. It will probably avg 3k for us over our lives based on the way it exists today.

I expect govt run plans and options to likely increase over the next 20 years bc the people overwhelmingly want a govt option.

[dandarc]

You go to healthcare.gov or your state's exchange, pick a plan and buy it. Or alternatively manage your retirement income such that you qualify for Medicaid (be sure and do your research before deciding this is the plan - in states that expanded it can be that simple. In states that did not, even if your income is very low you might still not qualify depending on other aspects of your situation).

[terran]

In addition to the comments above you can also get cost and subsidy estimates at https://www.kff.org/interactive/subsidy-calculator/

[oldtoyota]

Thank you!

[oldtoyota]

How do people cover health insurance when retiring early?

We are not government workers so can’t get it that way.

I tried to get pricing so I can create cost projections but the prices are all over the place, and there’s no guarantee regarding size of cost increases.

I’m in the US and hoping to find a decent solution.

Most use the ACA other options include healthshare which mmm covered in a recent blog post. You can estimate your costs for the ACA on healthcare.gov. Healthshare cost are easily calculated on the website that host them. For a family of 4 we're planning for 6k worst case and 0 best case. It will probably avg 3k for us over our lives based on the way it exists today.

I expect govt run plans and options to likely increase over the next 20 years bc the people overwhelmingly want a govt option.

Thank you! Is that 6k a year or a month?

[boarder42]

How do people cover health insurance when retiring early?

We are not government workers so can’t get it that way.

I tried to get pricing so I can create cost projections but the prices are all over the place, and there’s no guarantee regarding size of cost increases.

I’m in the US and hoping to find a decent solution.

Most use the ACA other options include healthshare which mmm covered in a recent blog post. You can estimate your costs for the ACA on healthcare.gov. Healthshare cost are easily calculated on the website that host them. For a family of 4 we're planning for 6k worst case and 0 best case. It will probably avg 3k for us over our lives based on the way it exists today.

I expect govt run plans and options to likely increase over the next 20 years bc the people overwhelmingly want a govt option.

Thank you! Is that 6k a year or a month?

A year but this is wildly specific to each person's family situation and agi

[nalor511]

Your states ACA marketplace.

[ltt]

If you go to healthcare.gov, you can preview 2022 plans and prices (or even 2021 plans and prices) by simply entering some information.  You do not need to create an account until you are ready to do so.  This allows you to see plans based on your estimated 2022 income.

I was mortified at seeing the 2022 price for the plan we are currently on.  It's a gold plan and the increase was close to $1200 per month.  No thanks, we'll switch to a bronze plan.  Either way, the max OOP is $17,400.  It's just that the deductible was lower with the gold, but we just are not willing to shell out at this time around $1500 per month just to carry insurance.

[dandarc]

If you go to healthcare.gov, you can preview 2022 plans and prices (or even 2021 plans and prices) by simply entering some information.  You do not need to create an account until you are ready to do so.  This allows you to see plans based on your estimated 2022 income.

I was mortified at seeing the 2022 price for the plan we are currently on.  It's a gold plan and the increase was close to $1200 per month.  No thanks, we'll switch to a bronze plan.  Either way, the max OOP is $17,400.  It's just that the deductible was lower with the gold, but we just are not willing to shell out at this time around $1500 per month just to carry insurance.

Congratulations on your increased income. At least a $300 to 1500 increase on the same plan seems likely that your income went way up to me.

[ltt]

If you go to healthcare.gov, you can preview 2022 plans and prices (or even 2021 plans and prices) by simply entering some information.  You do not need to create an account until you are ready to do so.  This allows you to see plans based on your estimated 2022 income.

I was mortified at seeing the 2022 price for the plan we are currently on.  It's a gold plan and the increase was close to $1200 per month.  No thanks, we'll switch to a bronze plan.  Either way, the max OOP is $17,400.  It's just that the deductible was lower with the gold, but we just are not willing to shell out at this time around $1500 per month just to carry insurance.

Congratulations on your increased income. At least a $300 to 1500 increase on the same plan seems likely that your income went way up to me.

Our income (husband and I alone) should increase about $4,000 from 2021 to 2022.  Overall, including our daughter's part-time income that was included on the 2021 plan (but really won't affect 2022 as she will not make enough to file a federal tax return for 2022), should decrease around $10,000 from 2021 to 2022.  That's why I'm mortified.

There are two more insurance carriers offering plans in our area.

[dandarc]

Apologies - should have remembered the whole "competition is bad for subsidies" thing since it happened in our county this past year. This is actually the first year we will qualify for any premium tax credit at all, and it is down roughly $300 per person per month because that 2nd highest cost silver plan is so much lower compared to prior years.

Maybe with time it will come out in the wash - full price insurance in California was quite a bit lower than full price here in Florida (for us anyway), and there was far more competition there.

[geekette]

For us, a slightly higher income, a year older, same plan.  The premium went up $100/mo, but our subsidy went up $260/month, which is very surprising.  There were a LOT of plans to wade through - 32 silver plans spread over 7 companies.   

[dandarc]

For us, a slightly higher income, a year older, same plan.  The premium went up $100/mo, but our subsidy went up $260/month, which is very surprising.  There were a LOT of plans to wade through - 32 silver plans spread over 7 companies.

Did you adjust your subsidy expectations when they passed the law that eliminated the PTC cliff for 2021 & 2022? It wasn't just eliminating the cliff - the expected percentage of income directed towards health insurance also went down, thus increasing PTC pretty much across the board. I think that happened in the American Rescue Plan Act which passed when we were fairly deep into 2021 - months after the usual open enrollment period closed.

Seems unlikely that 2nd lowest cost silver plan went up in a big way with that many plans available, but it is certainly possible. Maybe insurers in your area collectively had a bad year so everyone was raising prices significantly?

[geekette]

For us, a slightly higher income, a year older, same plan.  The premium went up $100/mo, but our subsidy went up $260/month, which is very surprising.  There were a LOT of plans to wade through - 32 silver plans spread over 7 companies.

Did you adjust your subsidy expectations when they passed the law that eliminated the PTC cliff for 2021 & 2022? It wasn't just eliminating the cliff - the expected percentage of income directed towards health insurance also went down, thus increasing PTC pretty much across the board. I think that happened in the American Rescue Plan Act which passed when we were fairly deep into 2021 - months after the usual open enrollment period closed.

Seems unlikely that 2nd lowest cost silver plan went up in a big way with that many plans available, but it is certainly possible. Maybe insurers in your area collectively had a bad year so everyone was raising prices significantly?

I think you're right.  I was comparing my notes from last year to this year.  We didn't change anything midyear, figuring would all shake out at tax time.

The SLSP went up $150 from last year to this year, even as 2 new insurance companies came into this market, so the PTC change accounts for the rest.

[LightStache]

I'm on an ACA plan now and that's my primary plan for FIRE. But if that goes up like crazy or disappears, my first backup is a co-op, second backup is VA, third backup is to move abroad, fourth backup is medicaid. There are good enough options for FIRE.