Healthcare in retirement is a pickle

[Goldy1]

All this talk about "am I saving enough for retirement" got me thinking. One thing that always kinda bugged me is how we have to be 65 to get medicare. Ok so that means presumably unless you have a pension and employee healthcare in retirement(none of which me and my husband will get) one of us has to work FULL TIME just for benefits unless we want to pay for our own healthcare. WE ae only in our 30's now.
I mean even if house is paid for and we have tons in the bank, you can lose it all with one emergency or illness if not insured and you can't retire if insurance cost inhibits that.

Not many places offer healthcare for part time. In fact at my last position, I worked 32 hours and I HAD to work 40 to get healthcare or even one single vacation or holiday pay so I literally got just my hourly wage.(although it was my choice since hubbie worked f/t and it left me extra time to do ALL 100% of the cleaning, shopping and cooking)

I just don't want to make him work f/t forever. LOL it's not fair.

[jIM_Ohio]

Save more- I plan on paying my own health care for aroun 12 years while retired.

[maat55]

I'm figuring that my house payment will change to my healthcare payment. I'll have a few years between to save extra, if I can't afford it then, DW can work while I play golf.

[disneysteve]

I'm figuring that my house payment will change to my healthcare payment.

I think that's a good plan, though I'm pretty sure our mortgage payments aren't enough to cover what healthcare will cost by the time we retire.

[MonkeyMama]

Just be glad you get health insurance. I've never been offered anything decent working full-time - have always self-insured. I am starting to think this is preferable since so far I have been pretty loyal to my insurer. (Best rates; best coverage - by a mile). If I can be loyal to them to 65, might be my best best. (Yeah, not counting on it).

But this is why I wonder:

My dad is looking at this. He found out California COBRA runs 3 years. So he can retire at 62 and use COBRA for 3 years. Otherwise, because of pre-existing conditions (even though it is the SAME insurer they have had for 30 years+) they would need to pay upwards of $30k per year!!!!!! For just the insurance. Dad has all sorts of genetic things - high cholesterol and such (has always had). Mom has Type 2 Diabetes. Mid-50s.

So yeah, if he switches from employer/COBRA to self-insurance, he gets slapped with pre-existing condition rates. If I self-insure and stay with the insurer forever, the rates won't depend on employment. But that is assuming I can afford it when I am 40/50/60. It's god awful for age 30.

Anyway, what people don't know is premiums for Medicare Part B are rising very rapidly.

Either way, healthcare is a huge, expensive issue for retirees. Sometimes I feel I have an advantage being young and having time to plan. I feel largely we have to just fend for ourselves. You don't know how many people I know who were working certain jobs for "health benefits for life" and all that was pulled out under them the year before they retired. I could not imagine having the rug pulled out form under me like that. Ouch!

[Goldy1]

At the rates healthcare are increasing, who knows what it will cost. We were paying $65 every two weeks out of paycheck for BC healthcare. IT had a $500 deductable and max out of pocket of $1500 after deductable per person. AFter deductable we had to pay 80% and BS paid 20%. I have paid out so much money for even preventative . My DH got charged over $200 for lab work for his cholesterol to do his cholesterol b/c cholesterol lab work wasn't covered in my plan.
By the time I pay all the fees, I am could generally better off with a catastrophe plan and going to the local health clinci for my preventative stuff. LOL who knows. eat your veggies.

[trueknight]

That's one big reason i'm thinking I'll stick with my State job. The pay isn't all that great, but healthcare coverage for me is paid in full and will be when I retire. I'll just keep my fingers crossed that the Texas Legislature doesn't make any detrimental changes to our healthcare within the next 12 years! Now, I'll have to pay a little extra to cover my wife, but it won't be alot of money. I think that benefit alone kinda outweighs crappy pay if you look at the big picture.

[Like2Plan]

All this talk about "am I saving enough for retirement" got me thinking. One thing that always kinda bugged me is how we have to be 65 to get medicare. Ok so that means presumably unless you have a pension and employee healthcare in retirement(none of which me and my husband will get) one of us has to work FULL TIME just for benefits unless we want to pay for our own healthcare. WE ae only in our 30's now.

First of all, I congratulate you for thinking about this in the first place. A lot of folks in their 30's think they are going to stay healthy forever. I think when you hit your 50's reality starts setting in.--all kinds of illnesses start to pop up--like cancer.

Probably the biggest surprise when you get closer to being on medicare is that it doesn't cover very much. Part A pretty much just covers inpatient hospital expenses link to medicare coverage

Part B is optional medicare ins. that you have to pay another per-person premium and the premium is based on your income (from two years prior). Part B typically covers outpatient health care expenses (but, it only covers a percentage). link to medical part b premium information.

Then, on top of that in order to have good coverage you can pay for a third supplemental insurance. Your supplemental insurance may or may not cover prescription drugs, in which case you can sign up for a Medicare prescription drug plan. Some plans allow you to opt out of part B, but others require you to sign up for it. But, if you opt out of part B, there is generally a penalty to get back on it: "The cost of Medicare Part B will go up 10% for each full 12-month period that you could have had Medicare Part B but didn’t take it, except in special cases. You will have to pay this penalty as long as you have Medicare Part B."

The bottom line is even when you hit 65, it is going to cost you. I think health care costs is one of the biggest unknown variables when it comes to retirment planning.

[biff]

Christmas is an annual holiday that is celebrated all over the world. Modern customs of the holiday include gift-giving for family members and friends. That well then, do you know what kind of Christmas gifts you are going to order this year?The gift is heathy of everyone.

EH?

[Ima saver]

Well, my husband and I have never worked anywhere to get health insurance. We self insured and after paying over $90,000 in premiums, we had never collected one dime. We dropped the insurance and just decided that we will never get sick. Finally, I picked up a high deductible policy (over $10,000) for my husband only.

[Joan.of.the.Arch]

Is there no point in your life at which you plan again to get insurance, ImaSaver?

[disneysteve]

We dropped the insurance and just decided that we will never get sick.

Good luck with that.

My 50-year-old brother-in-law who had no health problems had a heart attack the other day. I'm sure the hospital bill for the ER, cardiac cath, ICU stay, etc. will be well into 5 figures if not over 6 figures.

My wife needed her gallbladder out a year or so ago. That bill was $28,000.

Being a physician, I see the suddenness with which illness can strike in people who were the picture of health.

[Goldy1]

Disney Steve, surely you have health insurance for your wife and didnt' have to pay the 28 G for her gallbladder removal?

Yes, you never know with health. I got into a conversation where we were talking about healthcare at work. I mentioned something about how some kind of universal care would be nice even if minimal although I generally totally avoid "politics" at work. One of the gals about my age(30ish) just kinda said "thank God for health insuarance) when folks were talking about fees if not covered and waits in Canada. She took it for granted. If she gets her wish to have kids and stay home later and her husband gets laid off she might rethink her position. People only think of today. Surely if I was an m.d. I may noy want universal care if it cut into my bottom line. I already think many types of doctors are underpaid and overworked, but there is a big picture.

[disneysteve]

Disney Steve, surely you have health insurance for your wife and didnt' have to pay the 28 G for her gallbladder removal?

Absolutely. That was my point. You need insurance because you never know what might happen. Our share was a little over $2,000 as I recall. It was more than that, but I was able to negotiate it down about 30%.

[frugal saver]

I work for the state and like many, stay because of the health benefits. But we've been hearing that the benefits are likely to be cut or ended to save the state money, and I'm not sure if I could afford to pay for my own health insurance at my age.

As for Medicare, I used to review all of my mother's receipts and statements, and even when she was fairly healthy for her age, her medical premiums and prescriptions ran over $8000 a year.