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How much to budget for health insurance/expenses in early retirement?

Home Personal Finance and Budgeting How much to budget for health insurance/expenses in early retirement?

  • Avatar snowcanyon 
    Participant
    Status: Physician
    Posts: 530
    Joined: 10/22/2018

    I’ve had individual insurance both before and after the ACA in several states, and while the ACA has many, many issues, it’s actually made solo insurance useful IME. Prior to the ACA there were tons of problems with rescission in states like California, among others. If you incurred big expenses, they would simply rescind your policy. Not exactly insurance IMHO. Pointless. They took your money and ran. It just wasn’t worth paying for.

    And while many may whine about guaranteed issue, one day you might well be that person who is rejected for insurance because you had one high blood pressure reading last year. Not great for you, then, either.

    I agree with @cm that people are “whistling past the graveyard”, as his link states: https://www.bogleheads.org/forum/viewtopic.php?f=2&t=213839&newpost=3428004&start=150

    Not saying the ACA is a panacea, but the individual market was way worse before unless you were perfectly healthy and just wanted to pay money for a junk plan that might disappear at a moment’s notice. I don’t understand why that is preferable.

    #225168 Reply
    Avatar snowcanyon 
    Participant
    Status: Physician
    Posts: 530
    Joined: 10/22/2018

    I believe the United States will eventually transition to a single-payer government run health care program with cost controls, rationed care, and higher taxes.

    Until then, and if I decide to retire before age 65, I’ll either take advantage of the much lower costs of a healthcare sharing ministry, or if I develop a costly pre-existing condition, I’ll budget around $20k per year for health insurance on the individual marketplace for me and my wife.

    If costs on the individual marketplace exceed this or I can’t afford health insurance in early retirement, I’ll work 20 hours per week at REI (a fun low stress gig) and get full health insurance benefits (https://www.rei.com/stewardship/report/2013/workplace/employee-pay-benefits.html).

    If REI decides to stop offering health insurance, that means the whole system has collapsed and a single payer system is imminent.

     

     

     

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    Are you concerned about the lack of regulation and actuarial standards for health sharing ministries? Or the extremely low max reimbursements (often as low as 125k) per condition? Are there ministries that don’t have these issues?

    #225180 Reply
    Avatar Kamban 
    Participant
    Status: Physician
    Posts: 2487
    Joined: 08/01/2016
    Ask if he knows how that worked out for Steve Jobs.

    Click to expand…

    Jobs might be a genius of a inventor / designer but he was a nut case initially as far as his healthcare was concerned. This is what happens when you think being a genius in one field translates to other fields too. He had the rare pancreatic cancer that was a curable neuroendocrine type rather than the common garden variety adenocarcinoma. But he wasted 9 months with holistic therapy, acupuncture, herbs etc etc not wanting to undergo surgery to remove the head of the pancreas. By dilly-dallying for 9 months he let the cancer spread to the liver, and even a liver transplant did not save him.

    A simple minded Joe six-pack would have followed physician’s orders and would have been alive today.

     

    #225205 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 8134
    Joined: 01/09/2016
    Ask if he knows how that worked out for Steve Jobs.

    Click to expand…

    He had the rare pancreatic cancer that was a curable neuroendocrine type rather than the common garden variety adenocarcinoma.

    Click to expand…

    Wow, I didn’t know that part. Interesting to learn a physician perspective. It was really sad to me. He was a nutcase in many ways, maybe just to a mere mortal like me, but no question brilliant and one of the few that truly found his calling and optimized it.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~
    http://www.fox-cpas.com/for-doctors-only ~ [email protected]

    #225208 Reply

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