Medical costs during retirement

[MooseBucks]

Are there any reliable sites out there for estimating future health insurance costs during retirement? I'm thinking my wife and I could survive on less than 70% of current income but depending on health insurance costs we might need to adjust that.

[Gailete]

Well you should be able to find some info via the AARP website. I would think just doing a Google search would work well. The thing that you have to remember is the cost of Medicare A&B (I think it is B) comes right out of your SS check, You NEED a supplement (mine is through AARP) and they all seem to be changing and this past year I could barely figure out what they were talking about so I called AARP about the supplement and I am on it again this year as I always am. Doctors offices love AARP as they aren't pokey to pay. Then you get the joy of Medicare D the prescription program to figure out.

With those four items, other than some co-pays on your meds, your costs should only be for the policies themselves. If you expect to have your company covering your health insurance, be VERY familiar with the rules about that and Medicare including the D program. Check out the Medicare website and read up on everything you possibly can ahead of time.

Your Medicare A&B can flucuate according to your incomce (nothing I have to worry about). This year it is $109 for me. If you and your wife are both retiring at the same time and going on Medicare at the same, there is NO discount for married couples. So $109 + $180 for the supplement + $29 for the prescriptions plan= $318/month just for that. If you see that you will be getting a SS COLA raise don't get too excited. This year it wasn't worth the paperwork and it just went into the increase in the MC premium. My check never changed a penny, BUT at tax time I am liable for that $5 or whatever it came to is our income is high enough to pay taxes on. Since you are on this board, I hope that you have a lot of retirement money set aside.

The good news is that with the policies I have, I do have some co-pays on my meds, but every 6 weeks I get an IV for my arthritis and it is running close to $10K per dose and I don't pay a thing. I had a bad fall a few months ago and got some in home services and they covered it all. I've had several surgeris, all completed covered. Some think if they don't have anything medically wrong with them that they can skip the supplement policy. But then if you do have a problem I don't think you can get onto a policy until the beginning of each year (other than your first year on Medicare).

Probably didn't answer your question but hopefully gave you some foundation to know what you are looking for. Holler if I can 'help' some more

[TexasHusker]

If you are Medicare age a supplement will cost you $ hundreds a month, unless you opt for a tightly managed HMO, in which you might pay zero.

If you aren't Medicare age, expect to pay over a thousand a month for Obamacare, but put another $1000 a month away for your deductibles and coinsurance.

There is no such thing as "good" individual health insurance any more. The only thing you can buy without penalty is Obamacare, and all of the plans suck. That was a requirement.

[Spiffster]

The plans all suck because insurance companies all suck... its a requirement.
Not a fan of Obamacare either.

[Gailete]

=TexasHusker;459864]If you are Medicare age a supplement will cost you $ hundreds a month, unless you opt for a tightly managed HMO, in which you might pay zero.

If you will look at what I wrote up above, My supplement is only $180/month and I am not in a an HMO at all. I've been on Medicare for about 12 years now. This is the highest I have paid. This past year, many of the options were rather strange from what I was used to seeing, so I didn't change a thing, just went with my AARP supplement again. They pay the 20% that MC doesn't cover.

[corn18]

Don't forget about dental and vision. I budgeted $500 / month for medical. I have Tricare for life from my military retirement which is $600 / year deductible and 20% copay. That covers me until 65 when medicare kicks in. I added another $500 / month for self insured dental and eyecare. So $12,000 / year from 65 on.

[Gailete]

Forgot the dental and vision as those are two things that regretably get pushed into the background unless they are a neccessity. Saving cash is much better that most so called dental 'insurances' which barely covers a thing.

[disneysteve]

If you aren't Medicare age, expect to pay over a thousand a month for Obamacare, but put another $1000 a month away for your deductibles and coinsurance.

I know several people who are early (pre-65) retirees and if not for the Affordable Care Act, there is no possible way they could have afforded coverage. They would have had to go back to work just for insurance. Essentially, it is only the existence of the ACA that allowed them to retire early.

And they are all very worried about what will happen if the ACA gets repealed. They may end up having to go back to work which would really suck. My cousin retired 7 years ago and is now 62. He's got 3 more years before he can get Medicare. And he had colon cancer last year. He's going to be screwed if he loses his ACA coverage.

[disneysteve]

Saving cash is much better that most so called dental 'insurances' which barely covers a thing.

Agreed. We dropped our dental insurance years ago because the annual premiums were actually a bit more than our out of pocket costs paying cash.

I did get dental insurance at my new job because the rates were a little better but it will still only save us about $200 over the course of the year.

[MooseBucks]

Agreed. We dropped our dental insurance years ago because the annual premiums were actually a bit more than our out of pocket costs paying cash.

I did get dental insurance at my new job because the rates were a little better but it will still only save us about $200 over the course of the year.

Same here with it being expensive through work. For eye insurance I only get it every other year when we need new glasses.

Thanks for all the replies we are still VERY far away from retirement but it is good to get a sense of what people are paying.

[Like2Plan]

Don't forget about dental and vision. I budgeted $500 / month for medical. I have TriCare for life from my military retirement which is $600 / year deductible and 20% copay. That covers me until 65 when medicare kicks in. I added another $500 / month for self insured dental and eyecare. So $12,000 / year from 65 on.

Not to derail this thread, but did you know that there is a TRICARE plan that is called "TRICARE for Life" that kicks in for folks who are eligible for both TRICARE and medicare? (see details below). Interestingly enough this program was facilitated by legal efforts by Medal of Honor recipient Colonel George "Bud" Day, USAF, Ret.

Here is a brief history:
"After being passed over for selection to Brigadier General, Col. Bud Day retired from the Air Force in 1977 and returned to the practice of law in Florida.

After he retired, Day published Return with Honor, an autobiographical account of his POW experience.

Day focused his law practice on veterans issues, and was instrumental in the creation of the Tricare for Life program, restoring military medical care for retirees. Day won a class action suit in 1996 on behalf of military retirees against the federal government for breach of contract, after military retirees were stripped of their medical benefits by the Clinton administration and told to apply for Medicare. After the case was overturned on appeal in 2002, Congress responded by creating the Tricare for Life program, restoring military medical benefits for retirees, as they were promised."

http://www.military-money-matters.com/bud-day-medal-of-honor.html#axzz4lOe3HF4z

"TRICARE For Life is Medicare-wraparound coverage for TRICARE-eligible beneficiaries who have Medicare Part A and B.

Enrollment not required
Coverage is automatic if you have Medicare Part A and B
You must pay Medicare Part B premiums
Available worldwide:
TRICARE pays after Medicare in the U.S. and U.S. Territories
TRICARE is the first payer in all other overseas areas
Meets or exceeds the requirements for minimum essential coverage Basic health care coverage that meets the Affordable Care Act requirement...."
TRICARE For Life

The latest NDAA passed in Dec 2016 has some changes coming for TRICARE, but I don't think the law will impact TFL (other than maybe requiring enrollment). There are also changes to the other TRICARE plans in this law.

[AnnieG]

I know several people who are early (pre-65) retirees and if not for the Affordable Care Act, there is no possible way they could have afforded coverage. They would have had to go back to work just for insurance. Essentially, it is only the existence of the ACA that allowed them to retire early.

And they are all very worried about what will happen if the ACA gets repealed. They may end up having to go back to work which would really suck. My cousin retired 7 years ago and is now 62. He's got 3 more years before he can get Medicare. And he had colon cancer last year. He's going to be screwed if he loses his ACA coverage.

My brother (retired at 60) is one of those. He would've been ineligible for insurance due to preexisting conditions. He called around and got a plan that he could afford (the exchange ones cost more). It's probably bronze based on his copay, but covered most of his stay at the hospital in ICU for norovirus (which almost killed him). He is very worried about the next 2 years before he is 65!

[Like2Plan]

Same here with it being expensive through work. For eye insurance I only get it every other year when we need new glasses.

Thanks for all the replies we are still VERY far away from retirement but it is good to get a sense of what people are paying.

MooseBucks, I think there are going to be a lot of changes coming to health care in the coming years which will make planning very tricky. Even getting to the age where Medicare kicks in-- I have worries about Medicare such as 1. the cost for part B and 2. whether there will be medical providers who will accept medicare for payment because they can't afford to run a practice on medicare reimbursement schedules.

[Gailete]

I know several people who are early (pre-65) retirees and if not for the Affordable Care Act, there is no possible way they could have afforded coverage. They would have had to go back to work just for insurance. Essentially, it is only the existence of the ACA that allowed them to retire early.

And they are all very worried about what will happen if the ACA gets repealed. They may end up having to go back to work which would really suck. My cousin retired 7 years ago and is now 62. He's got 3 more years before he can get Medicare. And he had colon cancer last year. He's going to be screwed if he loses his ACA coverage.

I had a friend retire when he hit 62. I think with some it isn't that they can't keep working (he certainly could, he was just tired of doing it) and take it as soon as they can and then seem to think they will be healthy for the next few years. In reality would you buy a 60 year old house without expecting something to go wrong? Why do 60 year olds think nothing will go wrong with their bodies? Those that retire much sooner than 62 are setting themseves up big time if they think they can get along without both SS or MC, unless they have saved a couple of million -- and with no insurance, I would suggest at least $2 million set aside until their MC can kick in. One really bad stroke can eat up money like nobodies business especially if they have to go into a nursing home. You can't get Medicaid to pay for them there until pretty much all assets are eaten up by the home, only enough to not completely improvish the spouse. The spouse may be able to keep the house, but when both of them die, there will be a lien on it. When I worked utilization review, I was astounded by the costs etc., as well as how most families think that somehow they shouldn't have to pay down until almost broke. They think the govt. should step in and pay the bill. Whether people like to think of it this way or not, the money was set aside for retirement and this is that person's retirement as unfortunate as it sounds.

[corn18]

Not to derail this thread, but did you know that there is a TRICARE plan that is called "TRICARE for Life" that kicks in for folks who are eligible for both TRICARE and medicare? (see details below). Interestingly enough this program was facilitated by legal efforts by Medal of Honor recipient Colonel George "Bud" Day, USAF, Ret.

Here is a brief history:
"After being passed over for selection to Brigadier General, Col. Bud Day retired from the Air Force in 1977 and returned to the practice of law in Florida.

After he retired, Day published Return with Honor, an autobiographical account of his POW experience.

Day focused his law practice on veterans issues, and was instrumental in the creation of the Tricare for Life program, restoring military medical care for retirees. Day won a class action suit in 1996 on behalf of military retirees against the federal government for breach of contract, after military retirees were stripped of their medical benefits by the Clinton administration and told to apply for Medicare. After the case was overturned on appeal in 2002, Congress responded by creating the Tricare for Life program, restoring military medical benefits for retirees, as they were promised."

http://www.military-money-matters.com/bud-day-medal-of-honor.html#axzz4lOe3HF4z

"TRICARE For Life is Medicare-wraparound coverage for TRICARE-eligible beneficiaries who have Medicare Part A and B.

Enrollment not required
Coverage is automatic if you have Medicare Part A and B
You must pay Medicare Part B premiums
Available worldwide:
TRICARE pays after Medicare in the U.S. and U.S. Territories
TRICARE is the first payer in all other overseas areas
Meets or exceeds the requirements for minimum essential coverage Basic health care coverage that meets the Affordable Care Act requirement...."
TRICARE For Life

The latest NDAA passed in Dec 2016 has some changes coming for TRICARE, but I don't think the law will impact TFL (other than maybe requiring enrollment). There are also changes to the other TRICARE plans in this law.

WOW! I have Tricare for life but did not know that it continued after Medicare kicked in. That will save me some coin. THANK YOU!!!!