[quote=UCGal]
That said – I suspect FLU will benefit because of the ban on pre-existing conditions. He’s relatively young – and premiums are based on age. His medical issues will not jack his rates up or allow insurers to not insure him.
This will give FLU the opportunity to do consulting, entrepreneurial ventures, etc – and not be tied to an employer for healthcare.
As far as retirees – Any non-government retiree that was firmly counting on retiree healthcare hasn’t paid attention for the past decade. It’s gone away along with pensions. And it was NEVER protected under PBGC, the way pensions were.
I know a lot of folks on the early-retirement.org board who are waiting till October to verify the exchange rates – then turning in their notices at work… Access to insurance for the early retiree has been the big crap shoot preventing people who would otherwise retire from doing so.
Lots of discussion over on that board about 4x poverty rate thing (and the cliff on the other side if you don’t manage it right.) How that effects the roth conversion plans (don’t convert to roth because it might kick you above that threshold.)[/quote]
Yes, that freedom from insurance being tied to employment is a huge item.
The crap shoot on costs is the other. That cliff, when the parents are in the 40s is a $193/month for a family of 4. But in the mid-50s, that cliff is $548/month. Or about $6500/year.
For a two 60-64 year olds, that tipping point is $62,039/yr. The cost is $1600/month (for gold) and $1366 (for Silver) and the credit is $863/month. That’s huge.
Since I have a young child if I retire and push my realized income below $78,120 (today) I would get a $664/credit or $0 if I hit $78,120 or more. The difference is my insurance $750-$950/month between ages 40-64 or is it $950-$1750/month.
CD laddering and realizing five years income in one year will become necessary so that you pay high one year and reap benefits the other 4.
Or plan B, just insure you have $200K/yr in income.
