Opted for double medical coverage; A costly form of early-retirement insurance
Plan to retire early? Have you figured out how youll maintain medical coverage until reaching Medicare at age 65?
If the answer is no, this post may interest you...
In previous posts, Ive shared my medical insurance mess, where Im facing high costs and rapidly rising rates for individual medical coverage.
This month adds a new facet: I opted to join my employer-sponsored plan at work. And though costly, I will also continue to pay for individual coverage from Assurant Health.
Why two medical insurance plans?
I keep Assurant because:
- When the time comes -- Assurant will bridge the gap between early retirement and Medicare.
- If I were to drop Assurant (individual coverage) now, I may not qualify again when I really need it. Lacking medical coverage, early retirement would be out of the picture. [Individual health providers are notoriously risk-adverse, so any number of health events could render me or my wife uninsurable. Plus I now take several medications -- so I'm already on the bubble.]
Note: Other individual plans I considered, though cheaper, were not portable from state-to-state -- potentially limiting my ability to relocate. So if your dreams include a move to Phoenix or Boca, portability should be part of your criteria too.
Ive added the plan at work because:
- I know at a minimum I will about breakeven; And in the case of a major medical event, eliminate $4,134 / year in exposure. Specifics...
- - My Assurant plan is high-deductible at $5,000 / year, plus $850 / year in copays [(50/50) once the deductible has been met].
- - The plan at work runs $1,716 / year with low deductibles.
- - By the time my wife and I get what we need for routine medical, eye glasses and prescriptions, we will recoup most if not all of the $1,716.
- As a bonus, we eliminate $4,134 / year in exposure to unforeseen health events. And I can FLEX the premium, realizing savings in State, Federal and even payroll taxes.
Costly yes. But I chalk this one up as "early-retirement insurance".
Note: I will revisit this scenario as premiums continue to rise and new options present themselves.
about - feedback - disclaimer
• VirtualBank gives you up to 5.13% APY for your savings!
• Blue Cash from American Express: 5% Back on Gas, Up to 5% cash back on eligible purchases, No Annual Fee, 0% Introductory APR for 6 months, Pay over time
• Try Starwood Preferred Guest Credit Card from American Express. Great rewards and first year fee free!
• Bad Credit Home Loans
• Life Insurance in 10 minutes if qualified. No medical exam.
AARP has teamed with United Heath to offer major medical insurance. At least in my state the offering is unique in one key area: If you have been under a qualified plan for at least 1-year (with your employer for example), and have used your ... Read
I have written before of my medical insurance mess. I just got my next quarterly bill from Assurant / Fortis and the rate has increased exactly 27.46% from a year ago! The rate is now up to $2,193.54 quarterly* with a $5,000 deductible. And to ... Read
According to a snippet in Time magazine, Costco is pilot testing the sale of individual medical insurance. Coverage is provided in partnership with Pacific Care Health Systems. Costco states they hope to make coverage available at a cost 5% to 20% less than comparable policies ... Read
I've written of my medical insurance mess, where -- if premiums continue to rise as they have the past two years -- I'll be paying $53K/year before reaching Medicare in 2015. When it comes to rapidly rising costs, it appears that Im not alone. Over ... Read
,
