Question for Retirees

[BarryBobPosthole]

Is anyone who retired buying private health insurance? Just trying to get a ballpark idea of how much it costs. I am thinking $800-$1000 a month for premiums for me and my spouse. any idea if this is in the ballpark? Of course, we'll likely only buy a supplement when we're eligible for medicare. Maybe, or maybe not depending on what medicare even is when I get to that age.
BKB

[Buckrub]

What?

I presume you mean PRE medicare???? yes? no?

A) If/when you retire BEFORE age 65, I have no doubt that Verizon has an option for "Retiree Insurance". That's what I have, for another 5 weeks. It costs me $972 a month just for me but includes pharmacy/drug coverage. It started at $743.00. It is basically same insurance as I had as an employee, drug coverage, all that..........but no vision, and dental is extra.

B) If/when you get to Medicare age 65, those costs are pretty similar. Come June 1, I am going to pay $127 to MofOmaha for "Medigap" coverage. I could have converted my current corporate insurance to that type of Medicare Part B Gap Coverage for $154.00/month, but it wasn't half as good. On top of that, I will have Coventry/First Health Part D pharmacy coverage.........my wife already does, and most of her drugs are free. That premium is $26.30 a month. When Obamacare kicks in, these premiums are expected to triple at a minimum.

You will ALWAYS have to get a "Medigap" supplement policy. BCBS is always the highest and not always the best. Many companies offer these plans. My phone rings night and day. You will also have to have drug coverage, Part D. There ARE companies that sell both as a combo package (Advantage Plans). I have stayed away from them because many doctors offices have signs saying "We will not accept Advantage Plan insurance from A, B, C, D, E, and so on.............". SO, I have opted to have simple "Original Medicare", plus a "Medigap" type offering, plus a Part D plan, all three separate. Social Security will deduct the cost of Medicare Parts A (free) and B and D, but not the Medigap. I have to pay them directly.

[BarryBobPosthole]

Yep, that's what I'm talking about, what you have to pay for private insurance until medicare. Is the insurance fromyour employer the samething as Cobra? How long a time can you get that? Isn't it like a year? Gosh have you been retired only a year? Seems longer.
BKB

[Buckrub]

Nothing to do with Cobra. The company has a "retiree" insurance option. Cobra is retaining exactly what you have when you leave, but you pay 100%. It has a time limit, I think a year, but something.

This is just another option in the cafeteria plan. I guess it's sort of like Cobra in that the retiree pays all the premium, no corporate kick-in. But it's just another choice, but one that can only be made if/when you retire. Our company had a fund set aside for older employees to accumulate, which could only be used if you retired and then you used it to pay retiree health premiums, till it ran out. It paid 100% of mine for the first year, and about 75% of this year's premiums. It's why I took the package, because I knew I had that fund to pay my health insurance mostly, till I turned 65. Now it's here.

I can get it forever. When I turn 65, it reverts to a less-desirable plan, but much cheaper......no option, but I can continue it. I can't continue it AS IT IS (including drug coverage) if I'm 65, because they assume I have medicare. But I can keep what it morphs into if I want, forever. I don't want to, because it won't cover drug coverage. So, to heck with it. I got a private option that's much better, but I had to get B-supplement PLUS a D plan to make up same coverage as I had/have.

Heck, I THOUGHT I could have gotten back on the State plan at age 65.......and it's a humdinger of a plan that covers drugs and everything, for retirees, but they won't let me on it UNLESS I can prove I have lost 'creditable coverage' for no fault of my own. I haven't lost coverage, I've just decided to get something else. So I won't be able to get back on the State plan. However, I really think what I got is better for drug coverage anyway, so I'm happy.

I retired officially Dec 1, 2011. I quit work Feb 25, 2011.

[BarryBobPosthole]

I need to see what we have, if anything in that area. Thanks for the info. I don't wantto wait a year and find out there was something I should have done.
BKB

[Buckrub]

Most corp retiree deals are done by a paid third party. I get a check from some outfit in Minnesota, not my company. They are not the insurance company, but they hold the 'trust' for the money put back for pensions (maybe you don't get any defined pensions because of Bernie, I can't remember, but if you do..........) and answer any questions about withholding, pay, 1099's, benefits, insurance, etc. See if you have one of those (I'd NEVER have known who this was before retiring, never heard anyone mention this name). Maybe you have a similar company and you can call and ask.

Also, all HR's have a group dedicated to answering questions about retiring. I remember emailing some lady about this and that question for a few months before I finally retired. Remember, though, I was technically "laid off" for 10 months, so I wasn't an employee that had access to anything during that time. "Laid off" means "Fired, with a package", so I was on my own for a while. You won't be that way. So, go engage someone in HR Pension Section and start asking questions.

[BarryBobPosthole]

That's exactly what I want. No way I'm going away without something in my hand.
BKB

[Buckrub]

Unless it's your hat.

:)