How do you get early retirement health insurance? The question should be, how do early retirees find affordable health insurance? We all know that health insurance can be one of the highest expenditures we will have in retirement before we are eligible for Medicare at age 65. It can be a budget crusher.
Based on all my conversations with people before I retired. Medical insurance issues was the number one thing keeping people in a job they despised. It caused them to delay their early retirement dreams. I stayed far longer than I wanted to with my company because of health insurance.
The new company that took over my company whittled away at benefits and passed more of the retirement medical health cost to retirees. At least I knew I could still get it. In 2009 when I retired the insurance companies could and would exclude people. For anything from treatable high cholesterol to arthritis. Even if you could afford to buy medical health insurance on your own.
Early Retirement Health Coverage through Affordable Care Act (ACA), aka Obama Care
Then came the Affordable Care Act (ACA), aka Obama Care.
Love it or hate it, it is here. Or at least for the start of 2017. I do not want to get into the politics surrounding the ACA. The one thing I think everyone should get behind is an available health insurance benefit brought to anyone wishing to retire early while they are still young. That benefit is that Medical Health Insurance companies cannot now exclude you from buying Medical Health Insurance. The last of the Corporate Golden-Handcuffs have been unlocked.
I could have left my company years earlier. Accepting opportunities that were available to me and received a higher salary rather than endure what was occurring post-merger with a corrupt and now convicted felon ex-CEO Clown who ruined a great company to work for.
I digress. I did retire early with a Retirement Health plan. In the year 2010 it cost me around $475 for Medical and Dental insurance for my wife and me. For the year 2016 it cost me $851 for a lesser insurance. My 2017 early retirement health insurance has again increased to $970 for the same lesser health insurance. I am not complaining but it is my biggest monthly budget expenditure.
How do you get early retirement health insurance or find affordable medical insurance?
If you have a retirement Health Insurance benefit you should look very closely at it. I would hope that you are getting a better plan for less money than anywhere else. However your share of the premiums may be so high you could benefit from using the ACA site and qualify for an early retirement low-income subsidy. Again, I do not want to get into the politics associated to this. I am just offering a solution to Early Retirement Health Insurance.
I know my Leisure Freak fully retired taxable income when I am not practicing the Retire Often part of the Retire Early and Often lifestyle is within the low-income subsidy thresholds. Since I have no mortgage or debt and aside from a couple of hobbies, I live a simple life free from all the trappings of commercialism. That means my expense footprint is small and thus my taxable income is very low.
Some things depend on where you live. Some States established their own ACA sites and health insurance exchanges. Other States did not set up their own Health Exchange. You will then need you to look at the Federal government Health Exchange site.
You may want to investigate this further by going to the healthcare.gov web site (https://www.healthcare.gov/) .
There is drop-down to your specific State. You want to research basic information from either the federal exchange or your state’s exchange. Whichever is applicable for the state you live in. I have another page called Affordable Care Act Subsidy Thresholds. You can get an idea of whether you will qualify for any health insurance subsidies.
What to look for.
The idea is to find details about the various plans offered, cost and what it takes to enroll. Insurance plans grouped as Platinum, Gold, Silver and Bronze will cover identified essential benefits. However, your premiums and out-of-pocket cost will vary.
Just remember your retirement budget. Calculate what you can afford to pay for monthly premiums, any out-of-pocket deductible expenses, and co-pays. It all has to be part of your budget. Also look at and plan around the things that may not be covered by any health plan you are considering.
Finding an Early Retirement Health Insurance Plan outside of ACA.
Finding your early retirement health insurance and being able to compare various insurance companies, plans, coverage, and monthly costs is easy when using the web site eHealth. (affiliate) The site is straight forward and all you need to enter is your Zip Code so you don’t have to divulge any super personal information to see the plans and get quotes.
You can find the right health insurance plan for you and your family. Different plans cover different expenses. Let eHealth find the right coverage at the best price.
eHealth has the answers to your health insurance questions.
What happens if you retire early without having health insurance?
Not having health insurance could cost you thousands. All Americans without insurance must pay a penalty or qualify for an exemption. The “no coverage penalty” for 2016 is 2.5% of your total household adjusted gross income, or $695 per adult and $347.50 per child. This is up to a maximum of $2,085. Looking forward beginning tax year 2017 the percentage option stays at 2.5%, however the flat fee adjusts for inflation.
I am sure that everything ACA will still continue to be heavily debated in 2017 even as ACA’s “repeal and replace” AHCA bill is being reworked in the Senate. At this time ACA is under threat so counting on it may need to be throttled back.
Finding your early retirement health insurance is an important financial and non-financial aspect of your retirement. The plan you choose MUST meet both your budgetary and health needs.
I wish you great luck and hope this gives you some ideas on early retirement health insurance and that Health Insurance doesn’t keep you from Retiring Early while you are still young.