Healthcare during retirement?

[Deleted]

Alternatives are good.

First, you may decide to retire (or have to retire) before you reach Medicare age. It will save you having to pay full price for individual coverage. I'm now eligible for the company to pay the amount they paid in 2010 towards their health insurance when I retire. That's a huge perk to me- I intend to work to 65 but Medicare/SS don't kick in till I'm 67. Unfortunate that they froze it at 2010 levels but I'll take it if I need it.

Second- the benefits may be better than Medicare. DH is on my plan so Medicare doesn't pay a dime for him even though he's 74. I know we're doing a whole lot better on prescription costs.

Find out what you're opting out of. How good is the plan? How good will it be when you need it? What % of premium do they pay? ("Premium subsidy" tellls me you'll still be paying something for coverage.) Do you have to have worked a certain number of years or be over a certain age to get it? I got this only after 10 years and because I'm over 55. Surely your plan wouldn't allow a 62-year old part-timer to retire at 65 with this coverage available the rest of their lives. And what weasel words do they use about their rights to change the plan in the future?

More questions than answers, but worth asking them. I'd be interested too hear what they say!

[The Walk of the Penguin Mich]

Medicare only pays 80% of expenses, so many have a co-insurance to cover what Medicare does not cover, normally called Medigap.

So yes, it is prudent to carry some sort of Medigap policy. I know it is part of my retirement package when I retire and the cost of it is significant enough that it's a very nice carrot dangling in front of my nose.

FWIW, if I had Medicare with no co-insurance policy, I'd be looking at about $100,000 in out of pocket costs for myself this year.

[Deleted]

I'll sort of echo what Athena says. My 68-y-old husband has much better insurance than I do. I have co-pays. Because my insurance policy is primary and Medicare is secondary, he paid $4.44 for more than a thousand dollars worth of chiropractor bills. We are expecting his recent AAA surgery to be in the $500,000 range with 12 days of hospitalization with a cardiologist, hospital doctor, and cardio-vascular person attending plus rehospitalization because of internal bleeding due to Coumadin. He had minor surgery to correct the site of bleeding and filters put in to prevent blood clots and take him off Coumadin. That was another 5 days hospitalizaiton. We are expecting our share of the bill to at most be about $500 (and that is an exaggerated, make-believe number that mostly factors in our copays on more prescriptions).

But all this shifts when you only have Medicare, and it is primary. It may shift when my plan becomes secondary (when I retire). I would pay extra to keep health benefits intact. I know it is hard when you are in your 30s and 40s to visualize those Medicare years, especially as they won't look like they do now. But if you do cut insurance to save money, SAVE THE MONEY. Trust me, you will need it.

[Deleted]

A couple of things I noticed: you need to work 20+ years to get any subsidy if you don't retire from the school system. Even then, they don't pay a large % of your premium till you've been in closer to 30 years. I'm sure that time worked is reduced if you're part-time. I'd ask HR some questions specific to your situation. Example: "I'm 30 years old. If I continued working 30 years part-time with the same hours I do now, what subsidy would I be eligible for if I retired at age 60?" If you'd collect nothing unless you worked to age 80, you have your answer.

[Deleted]

Aug 21, 2012 20:07:27 GMT -5 @wrongsideof30 said:

Even though I'm only working part time, I still earn a year of service every year. So, I'm 8 years in. Also, I am buying 5 years of service this year. I really don't see myself leaving this place. But I guess those are usually the famous last words...

OK, that sounds better. You also need to think about the likelihood that you'll leave to do something else after you have, say, 25 years credited, then retire a few years later. They appear to pay a lower % of your premium if you don't retire directly from your current employer. If they're paying 50% but your share is $12,000 a year (not an unreasonable estimate), would it be worth it to you to pay that?

In general, I'm all for trading certain amounts of money now in exchange for someone else paying an uncertain (and likely to increase) amount way down the road, but you need to decide how it's likely to work for you.

[973beachbum]

I intend to work to 65 but Medicare/SS don't kick in till I'm 67.

The age of eligibility for Medicare is 65. SS plays around with the age you can retire and get benefits but medicare is still 65 and most retiree plans require that you sign up for it as soon as you are elgible.
www.medicare.gov/MedicareEligibility/home.asp?dest=NAV|Home|GeneralEnrollment&version=default&browser=IE|9|Windows+Vista&language=English

Wrongside I think you should talk to HR and explain that since you are part time you are not eligible for healthcare benefits. I know you still get pension type benefits so your years of service being pt are a big help but my question is if you retire after 30 years of part time work would you suddenly be eligibile for health insurance from them?

The answer to that question could make your decision for you.

[Bluerobin]

Medicare part A pays 80% of hospital expenses.
Part B pays doctors
Other parts pay the 20% or prescriptions.
Nice and confusing - you have to cover 4 parts.

Then there are plans that pay the whole thing, but generally lock you into an HMO type thing.

[Deleted]

Aug 22, 2012 8:25:32 GMT -5 973beachbum said:

The age of eligibility for Medicare is 65. SS plays around with the age you can retire and get benefits but medicare is still 65 and most retiree plans require that you sign up for it as soon as you are eligible.

Thanks- good to know.

[973beachbum]

Aug 22, 2012 9:47:49 GMT -5 @wrongsideof30 said:

Aug 22, 2012 8:25:32 GMT -5 973beachbum said:

I intend to work to 65 but Medicare/SS don't kick in till I'm 67.

The age of eligibility for Medicare is 65. SS plays around with the age you can retire and get benefits but medicare is still 65 and most retiree plans require that you sign up for it as soon as you are elgible.
www.medicare.gov/MedicareEligibility/home.asp?dest=NAV|Home|GeneralEnrollment&version=default&browser=IE|9|Windows+Vista&language=English

Wrongside I think you should talk to HR and explain that since you are part time you are not eligible for healthcare benefits. I know you still get pension type benefits so your years of service being pt are a big help but my question is if you retire after 30 years of part time work would you suddenly be eligibile for health insurance from them?

The answer to that question could make your decision for you.

I called HR yesterday and they weren't able to help me. They told me to call the State of Michigan retirement offices directly.

I know I'm only part time now (cuz of the kiddos), but down the road I definitely plan on working full time.

That stinks that they don't understand the ins and outs of the benies they offer. I guess this means you get to spend the day on hold and pray the person who answers the phone at the State knows their stuff. Good luck!