Health insurance ??!!??

We retired early at 60 years old. For the two of us, we have been paying $1600 per month. The Blue Shield plan is a great plan, but you pay for it. We knew we would be paying a lot for insurance until Medicare, but the early retirement has been worth it. We could have signed up for a cheaper plan but less coverage and high copays.
We get to go on Medicare soon and we will be paying $109 per month each for a "F" rated supplemental plan (best one offered). Go see an insurance broker, it doesn't cost a thing.

Thank you for the new info. I know that i am not in control of all this. I will leave it in God's hands. If I have to eat dog food to be able to travel this great nation. Then so be it.

I would say don't give up on your dream. I retired at 58 and paid $18.500/year for healthcare prior to turning 65. Went through the same fears of not being able to make it. It was tight until I turned 62. Remember if you can make it to 62 your get a raise of about $20,000 plus for SS. Once you make it to 65 you get another raise of $20,000 by going on medicare advantage plans. If you have no house, MH or other payments early retirement is very doable. A $40k increase with no debt is a lot of money added to your retirement.

Thank you all for the great adivise. I am 52 and my wife is 59. She is getting so depressed over this insurance issue. I am going to share with her everything I learned from all of you. I know I am not young enough to retire. But I can not stay in this state any longer. They are currently working on a bill that will tax you for the miles you drive. Just mind blowing. And this is a tax charged to travel roads I paid taxes to BUILD. My wife will have 26 years with the Sherrifs department. So my prayer is to move to West Virginia, Kentucky or someplace like that. Lots of land, big workshop and modest home. I will work from my shop hoping to sell stuff I make from wood. Maybe build and sell Adorondack furniture. I am not looking for a free ride. I will work for my life. But I do not want to pay for some politicans porsche or hooker. I am very angry right now and need to get this resolved quickly. I truly appreciate all of your input.

Dave

This reminds me of an error that I think some people are making (and, I can't say that it applies to you; too many unknowns). People go straight for the Bronze plans, because they are "cheaper." But, if they qualify for a subsidy, they may also qualify for cost sharing (reduction of deductible, max out-of-pocket, etc.) But... the only plans qualified for cost sharing are Silver plans. For some, then, a Silver plan will turn out to be far less expensive than a Bronze plan.

Louba wrote:
...I was then able to retire at 62 and got a BCBS bronze level plan for $293 for the two of us after subsidy. It's $5000 deductible, not the best health insurance I've had but it "hopefully" will protect us from getting wiped out by a major illness which was what our goal was...Lou

My company supported pre-65 retiree "Traditional" medical insurance cost me $2200 a month for two of us, back in 2004, rose to $2400 before I got to Medicare age, was $1400 the year it covered wife only.

Most of us are clueless about what our employers are actually paying to provide us with health insurance, until we have to pay it all, or at least more of it, ourselves. Premiums are age-graded in most states, just like life insurance.

Unless the insurance ties you to a location, you might lower the premiums by "moving" to a place with lower cost of care, for a policy tied to a lower-cost provider network. You might also reduce the coverage to reduce the premiums, but that option is now more limited, minimalist plans can no longer be offered.

My policy was so expensive because it was "take it anywhere" with global coverage, 80/20 for most things. I chose high deductibles and out of pocket limits (2500/10,000), otherwise premiums would be even higher. But one year, we both got sick, and ended up paying more than $20,000 that year for "our share" so be aware of the risks, when trying to reduce premiums.

Ropdoc wrote:

bgum wrote:
Who is "they" as in "they want $1600"?

Kaiser is the "THEY". I really like them but looks like they will be hitting the road. I appreciate all your advice and comments. I just don't understand this. Looks like we are better off dead instead of trying to enjoy life. I had so many plans of RV travel with my wife. But looks like that is just a dream. I will be working right up to the point my heart stops working permently I guess. I can not explain how devistating this is. Half out money goes into Health care. WOW.

You've received a lot of good information here about looking for a new state of domicile and how you can get health insurance cheaper than what you have been quoting. BUT you seem to be looking for a way out so that you won't have to try and 'live' your dream. There is a way to do it, but not if you want to put roadblocks in the way. You have to decide if you really want to make this a go or not.

Barb

Check out healthsherpa.com web site. It is an unofficial, but fast and easy to use site that shows the ACA plans for all states. It lets you quickly research plans.

Ed

Dave,

I don't think I saw anywhere about what ages you and your wife are. I assume you are younger than 65.
I had planned on retiring in 2012 but found at the last moment that I was going to be denied coverage because of pre-existing conditions (not very serious ones either). I wound up having to stay on my semi-retirement job for another year until the pre-existing conditions portion of the ACA went into effect. I was then able to retire at 62 and got a BCBS bronze level plan for $293 for the two of us after subsidy. It's $5000 deductible, not the best health insurance I've had but it "hopefully" will protect us from getting wiped out by a major illness which was what our goal was. I haven't been particularly happy with BCBS for a number of reasons and plan to switch to another company next open enrollment even at a higher cost. Surely thru the ACA with subsidy you could get coverage for less than $1600/month even in California.

Lou

wildtoad wrote:
Wow! $550 a month for TWO retired people, Silver BCBS PPO plan, no subsidies! That's great. Here in SC BCBS was the highest of all the plans available. BY comparison, I signed my wife and I up for a Silver plan from Coventry, no subsidies, we're 60, 62 and the monthly premium is $1,163. The comparable BCBS plan as I recall was in the $1,600 range.

So I guess it does matter where you live.

It absolutely does. For years, Maryland has regulated the prices insurance companies and health organizations can charge. It and a couple of other states have been able to control costs this way, resulting in lower premiums.

An additional factor is the amount of competition in the area. There are multiple for-profit and non-profit health organizations in our area and over a dozen hospitals within 30 miles. I priced plans 100 miles away but still within Maryland and the price was $20 more per month.

I found lower prices for health insurance close to large metropolitan areas with good access to health care and really high prices out in rural areas with little or no health care access. Much of South Dakota was expensive - there is less competition for patients, less patients, and less health services. My DH, who really doesn't want to pay state taxes, admitted that it was cheaper to stay here and pay them than change residency to South Dakota and take a chance on a catastrophic health event outside the state.