Medical Insurance for those that Retire before age 65?

[ultrarunner]

Just wondering how those retiring before medicare eligible and no pension related health insurance make a go?

One couple I know are both 63... the 16k they pay for coverage is a tough nut to crack as the premiums continue to go up each year.

For those pension eligible with Health Insurance may find themselves working for less than minimum wage when you take the difference from bringing home a paycheck to the value of their pension and benefits.

A lot of my friends are retired police officers and they get as much as 96% of wages/benefits after 30 years so staying on the job is really working for nothing...

 

[RNeumann]

One of the biggest costs between retirement and age 65 is health insurance. Most government employees don’t get lifetime medical insurance so they too are in the same boat. The typical way to pay for health insurance is with your IRA, 401K etc.
Those with insurance that allows for a medical savings account can save that money and use it for premiums once retired- I don’t recall the age as this rule changed in the last 4-5 years if I recall correctly.

 

[Gary Fowler]

I retired at 60 1/2 and due to the high cost, I went without insurance for 1 1/2 years. My routine medicine and doctor visits were much less than any insurance premium and I would still have had to pay the co-pays. I even had to have a bone marrow biopsy (negative results thankfully) which turned out to be outrageously priced. Doctor charged $250 then lab fees came in $2500 for one test and $5000 for another. When we called and asked if that was the charge if I had no insurance they came back with a total of $1250 for all. Ever wonder why insurance is so high? There you go. I took a chance that I wouldn't have any major medical bill and made out well with it (as they say "Your mileage may vary").

 

[George2615]

When I retired from the hospital at age 63 I was grandfathered in to receive partial coverage. The hospital paid the first $250 and I picked up the balance. It cost me about $520 a month to have the same insurance as an employee (roughly $6,240 a year) . When I turned 65 Medicare kicked in at $134 a month and my supplemental ins. also through the hosp. now costs me about $71 a month (about $986 a year total). I was happy when I turned 65 and was able to save that extra $5254 a year.
If I didn't have the partial payment from work and had to shop for my own ins. The best independent private plan I found at the time would have cost me around $950 a month or $11,400 a yr. $16K a year for both (8K each) is cheaper than what I would have paid with private ins.
Once they turn 65 they should be the same $134. a month from SS plus whatever supplemental plan the get.

 

[k0ua]

We are on Christian Health Care, $300 per month for both of us. Of course you negotiate those charges as Gary above outlined.

 

[ultrarunner]

Keep hearing more about medical sharing... don't know anyone personally that has it.

Know a lot of people on the country low/no income come to the Hospital just like anyone else and they are well covered for the Hospital portion of the bill.

The idea of insurance is to make the unbearable bearable and provide peace of mind.

Growing up not many I knew had insurance... sure there were those kids from school that had Kaiser but most older people in the family circle were what is called cash pay...

 

[kcflhrc]

I have no delusions of retiring before 65. Especially where I live, the Nickel and Dime Ranch.

 

[fishheadbob]

Retiring before 65 without health insurance is very expensive. Once you reach Medicare age the cost drops dramatically.
I have Medicare and a good, free Medicare Advantage plan that even has limited dental coverage.
Had some lab work done, paid my $5 copay for each of three tests. Lab billed the insurance $900 , Insurance knocked it down to $160 and paid it. The lab ate the rest but if I didn't have insurance the lab and their collection agency would come after me for the entire $900.

 

[Paddy]

Ultrarunner,

Not sure if you are saying your retired police friends have no insurance, or was that from example above. If you joined the force at 22 and retire at 52, that's a long time until the government benefits kick in. I'd say it time to start a second career. Get a double paycheck and insurance.

I plan to work until 70, many engineers hang on in some capacity. I'll delay S.S. for a few years so it increases in value.

Clearly people need to look at the whole picture when it comes to retiring. With our aging population, it will get worse before getting better.

 

[oosik]

I was fortunate beyond belief. I quit work in 1982 at age 40. I and all of my family have complete medical coverage, free for life, as a benefit from working for the government in Anchorage. Coverage started the day I quit work. If I had to pay 16K per year for medical coverage - the answer is simple - I would have to sally forth without coverage. Medicare became my primary coverage at age 62 with my government coverage as secondary.

At the time "big oil money" still paid for many perks............