Author Topic: family health insurance  (Read 1447 times)

lamboel

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family health insurance
« on: November 24, 2014, 02:09:07 PM »
Good afternoon, I am relatively new to the site and am looking for some guidance on family health insurance.  I get it through work but it is pretty expensive and if I retire young, I still need insurance for my family (wife and 3 young kids), right? I think my wife and I could pull off living for 30k or less per year except for the health insurance but keeping a policy will be a substantial cost and it would likely still not cover braces, etc. which could blow a gigantic hole in the budget. It did not seem to be included in the historical MMM budgets from 2010 and 2011 that I found on the website.  Surely, people with kids are not uninsured, right?  Is there anyone out there living on a budget of 30k or less with multiple kids who is not self insuring?  thanks

beltim

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Re: family health insurance
« Reply #1 on: November 24, 2014, 02:48:32 PM »
I think this is the most recent article on MMM insurance: http://www.mrmoneymustache.com/2013/10/28/obamacare-friend-of-the-entrepreneur-and-early-retiree/

It costs MMM about $460 per month for health insurance premiums for his family of 3.

If your income really is 30K, you're likely to get considerable subsidies to help make health insurance more affordable. 

johnhenry

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Re: family health insurance
« Reply #2 on: November 24, 2014, 03:08:27 PM »
Do you live in the US?  If so it's very likely that you'll be able to buy coverage for 3 kids and 2 youngish adults MUCH cheaper your state's healthcare exchange after early retirement, compared to what you pay now through your employer sponsored plan.  Is there a reason you haven't already checked this out????

That's the good news.  The better news is, as long as you make over 100% of the family poverty level for your household size, you'll be eligible for a subsidy once you are retired and don't have access to an employer's plan.

Using 2014 FPL numbers it looks like your ($30K) income would be just over 100% of the threshold for a family of 5.  That's perfect.  But it means you may need to be careful to make sure you have enough "control" of your retirement income to make sure your make/claim enough income to stay above the threshold and not become eligible for Medicaid.

If you are shopping for insurance NOW, while you are still employed where you have access to a plan through work, you will discover one very frustrating thing.  Even though insurance for your family of 5 may be very expensive through your plan at work, insurance to cover your spouse and children through a plan through the exchange CANNOT be purchased at an income-based, subsidized price as long as you have access to an affordable work plan for yourself!! 
As you get closer to retirement you may find yourself in a situation where it makes sense to look for employment from yourself or a small employer that does not provide insurance.  Your income can be all the way up to 400% of the FPL ($111,000 ish) and still get a subsidy for a family of 5. 

Keep in mind that buying through your employer's plan does likely to allow you to pay with pre-tax dollars, which can be a big deal.  But even with that advantage, due to the age of your family, buying a plan for your spouse and kids on the exchange will likely be cheaper..... even without the subsidy.