Mystery of early retirement

[Anonymous]

Anonymous wrote:We retired in our mid 40s. We live in VA and have the only PPO plan offered here to individual marketplace insurance buyers. (An HMO was available but we didn’t retire to change our options or lifestyle). It started at around $4800/month, increased yearly until around $5300/month and then it has gone down the last few years to around $4000/month. Two more things:

It is for a family of 4.

There are two level options for the PPO: gold and silver. We have the lower/silver one.

Crazy...we are in DC and pay $1700/month for family of 3 for a silver plan (the kid is only like $200/month as part of this).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You just buy insurance. It’s not very complicated but it is expensive, especially as you get older.

When you don’t have a pool, medical insurance is expensive and you pay for a ton of stuff because they just reject paying for covered items.

This doesn't actually happen, at least with any regularity.

Yes, in large part because of ACA standardizing plans and coverage, thankfully. The downside is that the costs continue to spiral upwards because there is no big picture concept of controlling them. In 30 years half the economy is going to be health care, it's insane.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The wealthier ones buy ACA health insurance. Or they are retired teachers, gov, military, police, fire, etc.

While they can probably keep their plan they might have to plan on a large increase in the premium costs.

Usually they get to pay the current employee rate.

[Anonymous]

Anonymous wrote:These people who retire early in their 30s, 40s, and 50s; what do they do for health insurance? I could in theory retire early but my medication is $7k a month without insurance so I would blow through my retirement savings quickly.

Are these meds you could get privately for cheaper overseas (Canada)?

To answer your question, I plan to retire at 50 as a Fed and will keep my health insurance.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You just buy insurance. It’s not very complicated but it is expensive, especially as you get older.

When you don’t have a pool, medical insurance is expensive and you pay for a ton of stuff because they just reject paying for covered items.

I’ve been on a few employer plans and now ACA for several years (self employed) and have never noticed a difference except for general differences between plans. I had a BCBS ppo through work and I have a BCBS ppo now. They’ve never rejected anything covered.

OP here. Ah that must be it; the ACA. We were self employed and carried our own insurance and we live in DC, which isn’t a state. We had Aetna and paid $2600 a month (this is before I got sick) but I constantly fought with them over denied billing. It was terrible. I think the ACA has really been beneficial then. I’m a government employee now so will retire with them eventually with their benefits.

So what‘s the point of asking the question, OP. MYOB

Because I would love to retire early but don’t want to blow all my retirement savings on medical bills. I’m working essentially for health insurance.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You just buy insurance. It’s not very complicated but it is expensive, especially as you get older.

When you don’t have a pool, medical insurance is expensive and you pay for a ton of stuff because they just reject paying for covered items.

This doesn't actually happen, at least with any regularity.

It did for me.

[Anonymous]

If you retire and have no or low income, an ACA plan will have no or low premiums regardless of assets. That's how many people have been able to retire early. It's strictly based on income, so if you receive a large pension that would affect your premium.

[Anonymous]

Most of them use ACA policies or Christian Health Ministries. I know one with MS who shells out for an individual policy with UCH.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You just buy insurance. It’s not very complicated but it is expensive, especially as you get older.

When you don’t have a pool, medical insurance is expensive and you pay for a ton of stuff because they just reject paying for covered items.

This doesn't actually happen, at least with any regularity.

It did for me.

Did you appeal the decision?

[Anonymous]

Anonymous wrote:

Anonymous wrote:The wealthier ones buy ACA health insurance. Or they are retired teachers, gov, military, police, fire, etc.

While they can probably keep their plan they might have to plan on a large increase in the premium costs.

Why? Wouldn't they pay the same premium as they paid while working? Or do just assume premiums will go up generally?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The wealthier ones buy ACA health insurance. Or they are retired teachers, gov, military, police, fire, etc.

While they can probably keep their plan they might have to plan on a large increase in the premium costs.

Why? Wouldn't they pay the same premium as they paid while working? Or do just assume premiums will go up generally?

In some workplaces the retirees would also have to pay the employer portion of the premiums.

[Anonymous]

Anonymous wrote:If you retire and have no or low income, an ACA plan will have no or low premiums regardless of assets. That's how many people have been able to retire early. It's strictly based on income, so if you receive a large pension that would affect your premium.

What about the PP that was paying $4k a month for a family?

[Anonymous]

By playing with how much you are withdrawing, you can qualify for highly subsidized Obamacare plans. And you ride that until age 65

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The wealthier ones buy ACA health insurance. Or they are retired teachers, gov, military, police, fire, etc.

While they can probably keep their plan they might have to plan on a large increase in the premium costs.

Why? Wouldn't they pay the same premium as they paid while working? Or do just assume premiums will go up generally?

It's this kind of question a PP had in mind when she wrote:

"Something I’ve learned from dcum is that our system keeps people on W2s a little in the dark about their healthcare and taxes. The info is there, but I do wonder how the politics would change if people had to pay their healthcare premiums and taxes directly."

I'd put it differently - the level of ignorance of many people regarding health care costs is staggering, and unsettling.

[Anonymous]

Anonymous wrote:The wealthier ones buy ACA health insurance. Or they are retired teachers, gov, military, police, fire, etc.

I'm a teacher thinking of retiring next year. I will have no health insurance after I retire. That has been the biggest detriment to us retiring early, even though we have pensions.