9 Health Insurance Options for Early Retirement
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- เผยแพร่เมื่อ 5 ก.ค. 2024
- For those who retire before 65, they must cover their health insurance until they qualify for Medicare. That's exactly the situation my wife and I are in. So I put together 9 options to consider if you are an early retiree.
Here are links to the sources I referenced in the video:
www.kff.org/medicare/issue-br...
www.dol.gov/agencies/ebsa/law...
www.cms.gov/CCIIO/Programs-an...
www.healthcare.gov/lower-costs/
finder.healthcare.gov/
www.thepennyhoarder.com/make-...
www.mass.gov/news/what-you-sh...
www.ehealthinsurance.com/smal...
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Timestamps
0:00 - 9 Health Insurance Options for Early Retirement
0:34 - Spouse's insurance
0:54 - Option 2
1:53 - COBRA
3:57 - Public market/Medicaid
5:54 - Plan Finder
6:32 - Part-time job with health insurance benefits
7:14 - Health care sharing plans
8:23 - eHealth insurance
9:41 - Financial Freedom
#earlyretirement #healthinsruance #robberger
ABOUT ME
While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (amzn.to/3by10EE)
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I am 53 and retired at 50. 1 thing I did do to retire early was to get out of the 401K and IRA programs. Bought rental real-estate and I am now a Limited Partner in about 3500+ units. I do not work.
I only contribute 5% to receive the full company match, and that's the extent of my participation.the 401K plan is structured to keep you working until retirement age, and fortunately, the government can't tap into it... yet!"
My wife and I live off of our 401K. We don't work. I recommend highly to everyone to build your 401K or Roth IRA's as an alternate revenue stream in retirement to your Social Security. An observation on 401K's is when it gets over 300K it starts to accelerate. When you get over 500K it can really accelerate as the stock market grows.
@robertharry6971 Did you completely liquidate your 401K and IRA accounts, withdrawing all the funds? If so, could you share the reasoning behind that decision? I'm curious to understand your thought process.
I gained insights into govt. actions from jennifer alaine a certified wealth manager. Sh enlightened me on the benefits of long-term Treasuries nd alternative invstmnts, which the govt. doesn't publicly disclose. Recently, they've been investing in promising startups, bonds, digital currencies backed by tangible assets, nd precious metals, while manipulating stck mrkt decisions influenced by Congress and driven by recurring events nd consumer sentiment ovr the past five years.
I agree the mrkt is manipulated that’s why I never contribute above 5% I try to enjoy the ride while I invest.
Rob, I retired early about 60 in SC. I learned that as a SC resident I was eligible to enroll in any SC state owned university for free. As a student then, I was eligible for the student health plan, a very comprehensive Blue Cross policy which only cost about $450 month for wifey and me.
That was a lucky break because I soon found out I had cancer, then the wife did too. BC was excellent.
I was only required to take 1 class as a grad student. Interestingly I did not have to get good grades or even pass, but I graduated with a 4.0 and an MA in early American History, then published my thesis into a book…The Intrepid Patriot, Captain Jacob Milligan of the SC Navy in the American Revolution.
This is really interesting, do you know if you can get the health plans thru the Tech schools or is it just the 4 year universities? Thanks!
Great story! That is an interesting thing if other can do the same depending on their state.
if the idea is to build an income stream to use as complement for retirement, or at any given point if needed, then building a dividend growth portfolio always buying adding to it could be a good and peaceful path. On the long run consistency and perseverance could guaranty the desired income stream goal with little worries
the idea is to Look for stocks that have paid steady, increasing dividends for years (or decades), and have not cut their dividends even during recessions.
Well said, with the help of the an investment advi-sor, I diversified my 62K portfolio across many markets and in a matter of months, I was able to produce over 356K in net profit from high dividend yield equities, bonds, and exchange-traded funds (ETFs).
wow massive gains! my partner recently hinted on going same direction.. what did you invest in, and who is your investment advisr please, if you dont mind me asking? in dire need of asset allocation
Just research the name Angela Lynn Schilling. You’d find necessary details to work with a correspondence to set up an appointment.
I looked her up, and I have sent her an email. I hope she gets back to me soon. Thank you
Im retiring early, I interviewed 5 different financial advisors and it was amazing to me how little they knew about this subject. You would think they would know a lot about this but the ones I talked to knew less than I did. I decided to just keep managing my own finances.
An additional benefit of running a small business is that you can deduct your health care costs. After I retired I started a small business and deducted my health insurance costs to save on taxes.
This video just helped me resolve my insurance cover ! Thank you so much --- unexpected, and appreciated!
Something I've not seen mentioned in various videos on HSA accounts in early retirement years (59.5 to 65) is that funds can be transferred from your IRA to your HSA effectively tax-free (up to $8,300 per year for families in 2024, plus $1,000 catch-up). This is because the HSA contribution credit cancels the IRA distribution tax.
For those facing high RMDs, this is a small but tax-free conversion from your IRA. Before age 59.5 it's even possible to do a penalty-free one-time direct transfer from your IRA.
Thank you very much for your creative thoughts on how to find health insurance before qualifying for Medicare.
Another excellent content video. Thanks for this important information.
Great information, thanks Rob!
Nice video Rob. Just as comprehensive as James Conole’s a few days ago.
Rob, thank you for all your valuable content you put out! I hope you don't mind me posting this information about veterans and spouses of veterans healthcare options. This is for 100% Permanent & Total (P&T) disabled veterans. Your spouse should be eligible for health care through CHAMPVA. Once your spouse turns 65 they must apply for medicare and then CHAMPVA will become a secondary insurance. It's a little bit of a hassle getting the CHAMPVA setup but well worth. You may also qualify for long term healthcare also. Do your research.
I would warn against any faith based plan. People are attracted to it due to cost. It’s not regulated in any way and everyone thinks they are healthy so it should be fine. It’s like putting money in a cookie jar for car insurance if there was a way not to need it. But when you do need it for a catastrophic event you are dealing with something that is not health insurance. If at all possible buy from the marketplace and get and HSA plan and fully fund that. That is a major tax benefit.
In the US, the healthcare industrial complex seems to be set up to make retiring early more difficult. Many companies have dropped retiree health plans. The cost varies widely. The monthly premium for retiree coverage for a family at my company was $3.2k. The company has now dropped retiree coverage altogether. Obamacare can be good but you need to manage your MAGI so it isn’t too low or too high. Plan options vary greatly by ZIP code and subsidies can change dramatically from year to year depending on the cost of the 2nd lowest cost Silver plan in your ZIP. The subsidy cliff at 4 times FPL will come back in 2026 unless Congress acts. (Trump still wants to fully repeal the ACA.) Medicaid usually has an asset test so even if your taxable income is low it can be difficult to qualify for and many good doctors don’t take Medicaid.
The plans in Florida are among the worst, which is very unfortunate as the state has a high retiree population. Granted most retirees are over age 65.
Another excellent vid. I am very fortunate to have an affordable retiree plan after earning 95 'points' (age 59 + 36 years of service). Now it - and me - just need to last until 65.
Thanks, Rob great info! Go Buckeyes!
Thank you!
I’m on ACA
awesome vid
Does Medicaid in some states (not all) have a take back component? I thought they did. This is different than the 5 year look back federal rule used mostly for nursing home care cost recovery. So I am not talking about that.
If you go back to work and have insurance or, I think more typically, after you die, the state you got it from, which runs Medicaid, goes after your estate to take back as much as they can based on your Medicaid cost. (The thinking is that, you do not need it to pay rent, eat, etc. so, they will take what is left back!) But I am not sure if this applies to the beneficiaries listed in your investment accounts though, as this is not part of most estate plans. I may be wrong on this but, just to be aware of it.
The last I read about it, many states have the rule but have published or put regs in and say they will not be taking back from anyone. Some states have made laws against take back.
The reality though is that, you need health insurance so, it is what it is in almost all cases.
I used the Kaiser family foundations health insurance calculator for an estimate to plug into my New Retirement plan.
Quick question how comfortable are you having account directly inputed it to New retirement I’ve been doing them manually but it’s tough to keep up. Do you feel it’s as safe. Your mint or empower account?
Myself, I would never enter login credentials from one financial web site into another financial web site. Sure, you need to add account numbers for ACH transfers, but not the actual login credentials to allow one web site to retrieve account details from another. By linking accounts like that, you are just increasing the blast radius of any account compromise in the future.
retired at 55. opted to buy hdhp private insurance through broker. allows me to contribute to HSA. aca income restrictions was too limiting as well as a very concerning tax subsidy cliff. you can't do significant roth conversions. cobra too expensive and no interest in faith based health sharing. i toyed with the idea of doing roth conversions and generating capital gains every other year and going on aca the other years but may be too much work and lead to interruption of care( not sure but my concern).
I hear you! I retired at 55, went on an Bronze HSA ACA plan with BCBS. I can’t really do big Roth conversions or make too much with my brokerage account on ACA.
Any thoughts on this scenario: one spouse is 10 years older than the other and has been the primary career in the family, providing insurance for the family; how to plan on bridging that 10 year gap for the younger spouse until they reach 65 without having to get it through employment.
Does anyone know if small business plans screen for pre-existing conditions and a rough idea of plan cost per person?
Hi Rob, do you offer any one-on-one financial advice consultations?
What about moving to a country with universal healthcare and low cost private health insurance?
A lot of people are heading over to Europe and places like Costa Rica that have universal health coverage. Portugal is a popular destination for retirees.
I completely agree to move to another country with free health care and it is what I plan to do when I retire early
I feel fortunate that I enjoy my job, am a part owner in my company, and plan to work until Medicare is an option!
I would really like to see someone do an in depth informational video on using a roth or some other income manipulation method to make ACA coverage affordable.
I tried to answer your question but, I can seem to see what you mean. The ACA cost is based on your true and lawful income. Manipulation would be illegal.
@@mongo2044 it's based on taxable income. So say I have a $39,000 pension and I pull $16,000 from a roth. I could spend $55,000 but my income in regards to the ACA would only be $39,000.
@@mongo2044 I think you are misunderstanding his use of the word "manipulation". Using Roth income, post taxed funds, income, and retirement distributions, you can control your MAGI to get you to your desired income level to qualify for what type of ACA plan you desire. This is not illegal and is a part of retirement planning.
I am doing this. I chose a Bronze HDHP+HSA plan. As long as I keep my MAGI under $55,700 it will be fully subsidized. I chose this plan as I have always been in good health, and it will allow for a higher MAGI for me to do Roth conversions up to the $55,700 level. Will also allow me to additionally contribute $5,150 to an HSA account. If something were to happen to me, it has max out of pocket of $7,050 then 100% coverage.
@@mongo2044”manipulation” does not necessarily mean illegal. It can simply be choosing which kind of tax-advantaged account to withdraw from in order to minimize your taxable income.
Just live off savings then your magi is low and subsidies are high.
I’m retired military and have Tricare. It is the best coverage pre 65 and after. I in no way planed on having Tricare later in life when I joined the military when I was 19. If there is anyone out there that is in the military and not sure if they want to stay in 20, think about having health care coverage for you and your family the rest of your life.
If your gonna be on a Govt pension like myself when I retire in a few more years then you can carry your current insurance over when you retire as long as you have at least 20 years in. So if you plan on retiring at 62 there's a 3 year gap until Medicare but you should be fine if you choose to carry your Insurance over...I know I plan on doing just that.
Navigating the ACA website was not that straightforward. After entering necessary meds and doctors, I still had a long list. The filter did not eliminate plans that did not meet my needs, just a red X. Just seems clunky.
I would see competing plans from same provider with varying premiums based on OOP or deductibles. Had to line up and review, review again and then decide.
Any resources for families who do qualify for Market Place (Obamacare) and have to self pay health insurance? We pay $42,000 a year for 3 people.
Im 33, my job doesmt offer health insurance. I bought a plan for $130 a month directly through blue cross blue shield
That is very cheap so I assume it is high deductible. Fine if you are young and in good health and don't have any issues. I pay nearly 500 for two with Blue Cross. We are older and use the insurance.
@@eddenoy321 it's 5000 for my deductible. I only go to the doctor like once or twice a year so I never get close
@@eddenoy321 he could have used aca to be partly subsidized if his income is low enough (it doesnt have to be that low). but, many aca plans are pretty terrible as well. imo you would use that as catastrophic coverage for eg if you get cancer.
@@cryengine_x Yes $5000 deductible (more or less) . It's good for those who are young, healthy, and low risk. No coverage for dental. So great living in the USA , isn't it ?
@@eddenoy321 yep, we could probably afford dental if we didnt just send 70 billion to ukraine. and yeah the usa so bad, wonder why all these immigrants beating down our borders
I've used Christian Healthcare Ministries for 30 years. My wife and I had two babies and a surgery during that time. Worked just fine like they said and very low cost.
Move to a civilized country that has universal healthcare.
At the point in life when you're just beginning to enter higher medical risk?!? Yes, you'll have missed the extreme taxation if you move after retirement, but you won't have quality care at the time in life you need it most. Awful plan!
All these options suck. I'm going to end up paying $12K/year for a high deductable plan that I will probably never use (I hope). I think its time to move to another country where healthcare costs are reasonable, and just pay as I go. If I let my US insurance lapse, they will screw me if I ever need to get back on a US plan... Thanks Obama for "fixing" the health insurance system. I wonder what an ex-president's health insurance plan costs? Probably $0.
Obama pays the same as every other federal retiree which is around 250 plus per person. He is also very rich so there is that as well. ACA doesn't help very much.Thank your GOP party also for keeping insurance high as hell for everything.
Don't blame Obama. Blame the GOP for doing everything they could to destroy the program. My Obamacare worked great until Trumps dumb tax cut for billionaires got rid of the individual mandate which resulted in my policy doubling from $300 to $600 a month. Not to mention SCOTUS letting states choose to not expand Medicaid. Because of that, people with insurance are paying for people who don't.
Typical MAGA rant. 🥱
Don’t worry Trump is releasing his healthcare plan in 2 weeks
@@eddenoy321 yeah it's funny how when the dems jammed obamacare through they and their allies in the media portrayed it as covering everybody. healthcare was solved. 20 years later nothing was solved, but thats always the case with any govt solution. then they always tell you the only solution to fix the broken thing that was supposed to be fixed by the last govt bill, is even more govt.
btw the reason healthcare costs are so high is govt involvement. govt already pays the vast majority of healthcare expenses in america through medicare and medicaid so thats a recipe for skyrocketing costs. just like college it's similar, the govt pays most college and it's also extremely expensive. housing is next lol oh wait it already is.