Medical Insurance between retirement and Medicare?

[disney junky]

I'm 63 and DW is 59. Currently, our plan is for her to retire at 62. I'm retired and on her benefit package through work. At 65, I'll begin Medicare, and she'll continue working for that additional year. I expect she'll get to keep more of her pay because she does pay a pretty good portion of our benefits.

My question is, if she retires at 62 and we need to pay for her coverage, what are some options that are available to us? Has anyone else done this? What might we expect to pay?

 

[mom2rtk]

You should be very sure of your insurance options before finalizing the retirement plans. The ACA is an option, but costs can be high and benefits very low already. No way to know what it will be like in a few years. And those tend to be years when medical needs can start growing.

 

[mnrose]

Short answer: LOTS of money. Probably upwards of 2K per month, and that's not going to be great coverage. It will have high deductibles. It's the number one reason that my husband continues to work. It will also depend on what state you are in, as costs vary significantly by state. I'm retired, with medical insurance as a retiree....although it is very bad "insurance." His insurance through work covers himself, our children (age 19), and myself as secondary. It is wonderful insurance. We really don't want to give it up and go in the open market. Yes, the ACA is available, and we might even qualify for subsidies to bring the cost down, but one really does not know how long the ACA is going to be available (the Trump administration wants it declared unconstitutional in it's ENTIRETY, and filed briefs in court last week in support of exactly this outcome, meaning it could flat out go away with little to no warning), or what it's provisions will be even if it survives. My husband and I are in excellent health with no serious issues whatsoever, but both my children have pre-existing conditions which mean it would be very very expensive to insure them (without the ACA and it's mandate to cover those with pre-existing conditions), so we want to maintain them on group coverage as long as we possibly can. Hopefully, by the time they age out of the ACA's provisions to remain on our policy (at 26....assuming the ACA lasts that long), they will be employed in jobs that provide group health coverage.

Sigh. Our health care system is a mess. It's a shame that retirement decisions are so impacted by all this stuff.

 

[mjkacmom]

When my mom passed away, my dad lost his supplemental health insurance through her state plan, and had to pay $500 a month to supplement his Medicare plan.

 

[jerseygal]

You can possibly do Cobra, length of time depending on your state. Some Cobra plans I am familiar with are 18 months, some are 36 months or one of the ACA state exchange plans. Cobra for a husband and wife, depending on your existing employer plan, could run from about $1500 per month to $2000 per month. We will be doing Cobra starting October 1st till end of year. When we become Florida residents as of October 1st, will investigate a multitude of plans, some with dental, some with vision through the ACA Florida plan and investigate during "open enrollment" period which is typically October-November. I have already been on the web investigating the Florida ACA plans versus what the cost will be for 2 of us for Cobra. HOPING for the best! CANT WAIT until 65 for Medicare! Will have to "bite the bullet" till then.

 

[sonnyjane]

My mom in Florida is physically, mentally, and financially ready to retire at 62, but for her and her alone, her health insurance was going to be $1,100 a month. She decided to just work three more years...

 

[Skippy918]

My coworker is getting ready to retire. He’s on a part time schedule mainly due to being able to keep benefits. His wife already is retired and is on Medicare. He plans to work until 64 and then go on cobra till he hits Medicare age.

My parents had medical coverage thru my mom’s union so they were able to retire at 55 for mom and 60 for dad.

 

[longboard55]

Cobra tends to be real expensive. Not always a solution

 

[sjrec]

I was able to stay on my employer’s insurance but had to pay the full amount. For an individual it was about 600.00 a month.
I had several pre retirement meetings that explained a lot of our options. She might want to check with her employer.
Good luck, it’s a big decision, for sure.

 

[sjrec]

You can possibly do Cobra, length of time depending on your state. Some Cobra plans I am familiar with are 18 months, some are 36 months or one of the ACA state exchange plans. Cobra for a husband and wife, depending on your existing employer plan, could run from about $1500 per month to $2000 per month. We will be doing Cobra starting October 1st till end of year. When we become Florida residents as of October 1st, will investigate a multitude of plans, some with dental, some with vision through the ACA Florida plan and investigate during "open enrollment" period which is typically October-November. I have already been on the web investigating the Florida ACA plans versus what the cost will be for 2 of us for Cobra. HOPING for the best! CANT WAIT until 65 for Medicare! Will have to "bite the bullet" till then.

My husband reached 65 a year and a half before I did, and we found it was cheaper for for me to pay the full amount through my employer and have him “Cobra’d” than to pay as husband and wife. My HR person actually pointed this out-they can be a great help sorting through everything.
I loved my job, but I was done at 62! Good luck, it can be so overwhelming!

 

[barkley]

I'm 63 and DW is 59. Currently, our plan is for her to retire at 62. I'm retired and on her benefit package through work. At 65, I'll begin Medicare, and she'll continue working for that additional year. I expect she'll get to keep more of her pay because she does pay a pretty good portion of our benefits.

My question is, if she retires at 62 and we need to pay for her coverage, what are some options that are available to us? Has anyone else done this? What might we expect to pay?

THIS-LOOK AT THIS AND KEEP IT IN MIND-

and had to pay $500 a month to supplement his Medicare plan.

i read on these boards all the time about people's plans/concerns 'until i get medicare'. medicare alone is NOT ENOUGH. take time to familiarize yourself with what it does/does NOT cover-esp. when it comes to things like prescription meds. there are deductibles and co-pays that most of us on it rely on other forms of insurance to cover in whole or part.

 

[tvguy]

Cobra tends to be real expensive. Not always a solution

Actually, with the advent of the "Affordable" Healthcare Act, Cobra may be less expensive that buying other insurance. So check. Cobra at my wife's work would be $13,000 a year for the two of us. Private insurance would be $23,000. We are looking to retire next year at ages 63 and 62 1/2. Our financial planner ran the numbers 10 years ago, and private insurance was half what Cobra was then. When we met with him in January he said for a lot of his clients, Cobra is now a much cheaper option, usually with better benefits.

 

[DanInMN]

I have almost the same situation as the original post. A few months ago we bought our future retirement house on the south side of Kissimmee. We planned on retiring in 1-2 years, but a recent change in our family situation has accelerated the plan. I’m 63 and my wife is 59. I will retire from my very high stress job in about 3 months. My wife likes her low stress field and just accepted a job offer in Orlando and starts on June 3rd. She will work 5-1/2 more years. She will cover our medical insurance at a cost of $800/month for family coverage, where my Cobra would cost double that.

I don’t know of any way to obtain heath insurance at a economical rate to bridge until Medicare, other than have one person working. However, if you have an HSA you can use it to pay Cobra premiums - if that helps.

 

[jerseygal]

I have almost the same situation as the original post. A few months ago we bought our future retirement house on the south side of Kissimmee. We planned on retiring in 1-2 years, but a recent change in our family situation has accelerated the plan. I’m 63 and my wife is 59. I will retire from my very high stress job in about 3 months. My wife likes her low stress field and just accepted a job offer in Orlando and starts on June 3rd. She will work 5-1/2 more years. She will cover our medical insurance at a cost of $800/month for family coverage, where my Cobra would cost double that.

I don’t know of any way to obtain heath insurance at a economical rate to bridge until Medicare, other than have one person working. However, if you have an HSA you can use it to pay Cobra premiums - if that helps.

Good Luck to you, exciting. We can relate to "high stress jobs", our motto is "have to smell the roses when we can". DH will be retiring July 31st after 30 years with the same company, high stress position. We will both be "semi retired", true empty nesters as of this August, living in Orlando starting October 1st, brand new adventure, 6 weeks to 2 months in the summer, if all goes according to plan, at the Jersey shore to enjoy our kids and future grandkids. We will be looking for part time work to keep our minds and bodies active since we are both young, 62 and 61. We are planning on either Cobra or an ACA plan. Hoping for the best till we reach 65!

 

[nkereina]

Both of my parents opted to wait until age 65 to retire solely because the healthcare was so cost prohibitive, and neither of their companies offered benefits for retirees. Even though they had to work a few years longer than they may have wanted to, it did allow them to contribute that much more to their 401K's and social security. It also allowed them to hold off on collecting social security until they retired, which gave them a bigger check each month. Pros and cons to both!

 

[disney junky]

I was able to stay on my employer’s insurance but had to pay the full amount. For an individual it was about 600.00 a month.
I had several pre retirement meetings that explained a lot of our options. She might want to check with her employer.
Good luck, it’s a big decision, for sure.

We just met with the guy who handles her 401k retirement plan through her work. He mentioned that there was a possibility of her continuing her medical coverage through her employer, which we didn't know was a possibility. So that is an avenue to pursue. I have been assuming $1000 a month. Our financial advisor has suggested this is an accurate estimate.

I have plenty of friends on Medicare, including my in-laws and older brother, and I've never heard of anyone paying $500 a month for a supplement. But I certainly don't know all the in's and out's of these supplements.

Our projected income in retirement should be adequate to maintain our desired lifestyle, but the purpose of my original post was to hear other's stories. Thanks for all your replies.

 

[nkereina]

I have plenty of friends on Medicare, including my in-laws and older brother, and I've never heard of anyone paying $500 a month for a supplement. But I certainly don't know all the in's and out's of these supplements.

I don't know the ins and outs either, but my parents pay something like $50 a month for supplemental coverage. Between that and Medicare, its probably some of the best coverage they've ever had. They have frequent doctors visits and recurring medications, and their bills are minimal if anything at all.

 

[mom2rtk]

I don't know the ins and outs either, but my parents pay something like $50 a month for supplemental coverage. Between that and Medicare, its probably some of the best coverage they've ever had. They have frequent doctors visits and recurring medications, and their bills are minimal if anything at all.

I don't know the ins and outs either, but my mom mentioned recently that they pay around $500/month for their supplemental policy.

 

[Christine]

My deceased FIL had Medicare with a supplemental BC/BS plan that he got from being a federal employee. I believe he paid about $500 per month for the supplemental. Thank goodness, because I am now going through his EOBs and I'm surprised at how much Medicare did not pay for all his medical problems for the last month of his life.

 

[nkereina]

I don't know the ins and outs either, but my mom mentioned recently that they pay around $500/month for their supplemental policy.

I know there are different providers of supplemental policies with different levels of benefits. When my parents shopped around, they found the prices were all over the place. But for what they needed/wanted, one of the more basic plans was more than sufficient and still provides better coverage than what they had while working. It may behoove your mom to shop around or look into other plans more, to ensure she's not overpaying.