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No Employer Supplemented Inurance - 2020 Health/Dental/Vision budget for 56 yo couple

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    No Employer Supplemented Inurance - 2020 Health/Dental/Vision budget for 56 yo couple

    For 2020, I'm budgeting $2,100 per month for health/dental/vision for our 2-person household:

    - $1,150 per month health insurance premium through the ACA market place (not eligible for subsidies), bronze HDHP HSA-qualified plan with $13,500 family deductible and out of pocket max in-network (out of network: $20K deductible and $50K max).

    - For peace of mind, I want to be prepared to cover $20K out of pocket (up to the out of network deductible) this year. We currently have a $10K balance in our HSA, so I'll budget $833/month for "additional to savings to cover out of pocket." I'll contribute what I'm allowed to the HSA and keep the rest in regular savings. Going forward, 2021 and beyond, I'll continue to contribute the max allowed to the HSA. Assuming we carry over more and more of the HSA balance each year, eventually we'll have enough in our HSA to cover the out of network max. (In the unlikely event that we hit the $20K out of pocket early in the year, we have enough in our general EF to cover us.)

    - $100 per month for dental, vision, OTC meds, and first aid supplies.

    $1,150 + $833 + $100 = $2,083 per month … I'll round to $2,100

    *We will save approx. 2,000 on taxes due to the HSA contribution.
    $2,100 x 12 months - $2,000 tax savings = $22,200

    Hopefully this information is helpful for any of the younger forum members who are contemplating FIRE, or self-employment, and wonder what health insurance costs when you get older if you don't have employer-provided or employer-supplemented health insurance. I think self-employment is great, and I think FIRE is fine, but only if you go in to it with your eyes wide open.



    #2
    Wow, definitely eye-opening. Appreciate you laying out the numbers. That's basically a part-time job just to earn enough for health insurance. Makes me grateful for the military healthcare coverage, but even that only covers most things, and only while I'm active duty...

    :::Mentally adding an extra half-million to my "number":::
    "Praestantia per minutus" ... "Acta non verba"

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      #3
      Originally posted by kork13 View Post
      Wow, definitely eye-opening. Appreciate you laying out the numbers. That's basically a part-time job just to earn enough for health insurance. Makes me grateful for the military healthcare coverage, but even that only covers most things, and only while I'm active duty...

      :::Mentally adding an extra half-million to my "number":::
      Tricare for retirees is great and affordable. So no half mil needed. I have been on Tricare for retirees since 2008. We still have 4 on the plan. There is a cap of $3k for out of pocket expenses (might be higher since I last looked). There were many years where our health care "costs" were north of $50k and we only paid $3k. And the wonderful part was I didn't need to get health care through work which saved us about $12k / year. How awesome is that? Still have to get dental and vision, but that is a lot cheaper. And once you hit 65, it turns into a medicare supplement, so it keeps on giving. It's worth at least a half mil, but it won't come out of your pocket.

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        #4
        Appreciate you sharing. That is positively insane. It's disgusting that we allow this to be a reality in a country that is supposed to be the land of opportunity. You're paying more for annually for healthcare than many American's spend on their combined monthly expenses. Hate that employees are forced to work for a corporation just in case something were to happen and they were to need extensive medical care.

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          #5
          Originally posted by riverwed070707 View Post
          Appreciate you sharing. That is positively insane. It's disgusting that we allow this to be a reality in a country that is supposed to be the land of opportunity. You're paying more for annually for healthcare than many American's spend on their combined monthly expenses. Hate that employees are forced to work for a corporation just in case something were to happen and they were to need extensive medical care.
          Yep. Insurance needs to be uncoupled from employment, but still remain affordable. Employers could still give you a "healthcare stipend" as part of your benefits package, but your insurance shouldn't be provided by your employer. You shouldn't lose coverage when you leave your job. And yes, you could get COBRA for 18 months but most people can't afford that.
          Steve

          * Despite the high cost of living, it remains very popular.
          * Why should I pay for my daughter's education when she already knows everything?
          * There are no shortcuts to anywhere worth going.

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            #6
            DS you and I agree. I also want to point out if we decouple employment and healthcare we may have a true health market economy which another poster has mentioned. I think this is a reasonable option to try in lieu of single payer system. I don't think it'll work in the US because people will not be able to be responsible however I think we need to try it because so many people believe that single payer is not the answer I think the US has to try a truly free market system where EVERYONE buys health insurance. Where everyone isn't tied to military, federal/state governments, and private company insurance. Like "obamacare" tried to do was make it so the markets had enough people participating instead of only sick people. If we decoupled insurance and forced people to buy insurance we in theory would have the right pool of everyone participating.
            LivingAlmostLarge Blog

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