Early retirees - how much does your health insurance cost you?

[Mabouya]

I'm almost certainly going to be retiring before 65, quite possibly at 60, and I'm trying to get a ballpark estimate of what my health insurance costs will be. So, let's say a single, relative active and healthy 60 year-old male with no significant preexisting conditions (that I know of) - how much per month should I throw in the budget plan?

TIA

[ldamelio]

Variable - kind of like asking what a bike costs - depends on a number of factors including what you want in your coverage, where you live, pre-existing conditions, what you're willing to do for co-pays and deductibles, prescription coverage, etc. . Things that can keep your premiums lower include ACA coverage if you're eligible, excluding coverage for low probability, high cost items (like bone marrow or liver transplants), and not covering behavioral health. It takes a lot of shopping. Now, to finally answer your question (ballpark), figure about $1500 monthly for a decent policy. You can play around on ehealthinsurance.com to see a variety of plans. I'm not recommending this site to actually purchase, it's just a good place to plug in your parameters and get ideas of what plans cost. It's the wrenchscience of health insurance.

[Mabouya]

Variable - kind of like asking what a bike costs

How about the Shimano 105 of plans? Just as functional as Dura Ace mechanical, but a bit heavier and not as shiny.

Definitely not looking for the Dura Ace, and definitely not electronic. I could probably live with Sora.

Edit: I was thinking $2k / month as total guess, but if it's less than that, that's good news.

[ldamelio]

For a '105' plan, figure about $1200. My $1500 number was Ultegra. Really the biggest variability is in co-pays and deductibles, so look at your risk tolerance there based on savings, etc. It's like picking the deductible on your car insurance, but the stakes are multiplied logarithmically. Be very careful - in the byzantine world of American health care finance, that's your greatest risk of financial disaster. A 30% co-pay could wipe out decades of savings for many people. Take your time and research carefully with an advisor on this - without hyperbole, it could be the biggest financial decision you ever make. The premium is only a small part of the decision tree. Don't get your advice on a bike forum, even from people in the biz like me.

[Mabouya]

For a '105' plan, figure about $1200. My $1500 number was Ultegra.

I tend to go with a mix of 105 and Ultegra on my bikes, so I can live with that.

Thanks for the warning that the monthly premium is only one of several factors, and that co-pays that are a % of the total amount can be a huge hit, if we're talking hyper-expensive US healthcare.

[cny rider]

Also make sure you're using the insurance to insure against the things you can't risk having to pay for, as opposed to routine expenses.
If you're able to retire at 60, you can probably afford to pay $100 for a routine physician visit, so don't buy insurance that pays those routine, manageable expenses.
Eyeglasses, gym memberships? You probably don't need insurance to cover those even though that's the pitch that plans make to attract people.
Think about a cancer diagnosis, (not wishing it on anyone, but it happens) with lots of expensive imaging, maybe some surgery, and the possibility of an oral anti-cancer therapy that retails for $10,000 a month.
How does the plan handle those expenses? That's what matters.

[bigbill]

After a couple of years of living on your retirement income, ACA will be your friend until Medicare.

[jclay]

I'm almost certainly going to be retiring before 65, quite possibly at 60, and I'm trying to get a ballpark estimate of what my health insurance costs will be. So, let's say a single, relative active and healthy 60 year-old male with no significant preexisting conditions (that I know of) - how much per month should I throw in the budget plan?

TIA

Go the healthcare.gov website armed with your expected AGI and you can find out!

And what Bill said: The ACA is your friend.

[Ras72]

Interesting to see this thread. Recently, wife and I have been discussing the same subject.
So, if I'm understanding this info here - it's best to wait until the insurance companies begin their trickle-down plans. I'm always looking for that DA performance for the 105 price.

But seriously, I've played around on United Healthcare's website. Seems to have an infinite amount of plans.

[sailor]

Not in the same age bracket but my wife has very expensive chronic health issues so know too much about the topic. The most important number to watch is maximum out of pocket, this can vary between 1k and 20k on plans that seem otherwise similar and is the best determinant of how much things cost if you have a real issue. Deductibles vs premiums seem to wash out if you spend it so I would err high there and that way you save money if you use less care.

[vertical_doug]

There are two types of people when asked about retirement- those that think there is a number and those that know the answer is MORE.

I do think most pensions still have unrealistic return expectations. If you are young and in good health, don't retire. Keep working...