The reason you need insurance is because one serious accident/illness could wipe out your entire savings. I'm in California, so I'm not sure this is relevant in your state, but when we retired, we got a high deductible HSA plan through the Obamacare exchange. It has varied in cost over the last 4 years, but in all but one of them, it has been under $100 per month for a 55+ aged couple. The key is to keep your MAGI low enough to get premium subsidies. Yes, we are on the hook for $6k deductible, but we have never spent more than $3k in any year so far. If we do have a serious problem, we won't be bankrupted as a result.