Skip to main content
No. of Recommendations: 3
This may be better on another board, for while it has to do with how we spend our investments, it has nothing to do with growing them. However, this is the most active retirement board I am on, and in the hopes of reaching someone who knows what they are talking about, I am posting it here.

When we retire next year, DH has access to retiree health care that is 70% subsidized by the company. The catch is that it only covers the two of us, and we will at retirement have two kids in college, aged 18 and 20. We are not sure how to go about insuring ourselves. If we have retiree health care, can we still be eligible for ACA subsidies? If the kids are still dependents, but DH and I are not on ACA, are their policies eligible for subsidy? There is no longer dental coverage for any of us through the retiree health care, but I have heard references to it under ACA.

We will be living in a pretty rural area in retirement, though traveling 3-4 months a year. Because there is currently exactly one insurer for the area, and it is not great coverage for the price, we would love to keep our current work insurance.

I would appreciate it if anyone could point me in the right direction to get my questions addressed.

TIA,

IP
Print the post Back To Top
No. of Recommendations: 0
I believe your kids would qualify for medicaid under your scenario - though no positive.

If you are covered by an employer plan, you are not eligible for a subsidy via an exchange.

Regarding dental:

https://www.healthcare.gov/can-i-get-dental-coverage-in-the-...

You may shop for such while remaining on your employer plan.
Print the post Back To Top
No. of Recommendations: 5
I'm not sure about the ACA, but I know that when my kids were in college, the school had a medical insurance plan that the kids could get. They were required to be covered by a plan, and so we waived that since they are on my health insurance, but it was available.

I'd ask the college what they offer in the way of health insurance for the students.
Print the post Back To Top
No. of Recommendations: 0
I'm not sure about the ACA, but I know that when my kids were in college, the school had a medical insurance plan that the kids could get. They were required to be covered by a plan, and so we waived that since they are on my health insurance, but it was available.

I'd ask the college what they offer in the way of health insurance for the students.


Thanks 2Gifts. That is definitely part of our search. Since Eldest has been covered by our insurance, we never bothered to check it out, but I remember something like that from my days in school. It will be interesting to see if it covers them when not at school as well.

IP
with about 15 months to get all the ducks in a row
Print the post Back To Top
No. of Recommendations: 0
Thanks for the link.

IP
Print the post Back To Top
No. of Recommendations: 0
Consider shopping for private insurance instead and look at the whole package. That 70% subsidy can be very attractive, but perhaps insurance exchanges will give you more choices.

As to dental insurance, once you get on Medicare, you will have no trouble finding dental coverage for $20 to $30/mo.

Most retiree insurance is a one time option. Once you decline it it is no longer available. But you can also carry it for a while and switch later.

Be aware that health insurance premiums rise with age. When I retired at age 53, my employer offered inexpensive group health insurance. The bump at age 60 was quite sharp. And eventually they capped the subsidy which made insurance very expensive. But any use of the insurance made you uninsurable elsewhere. So you could not shop around for lower cost insurance. The change in preexisting conditions rules should give you more options if circumstances change.
Print the post Back To Top
No. of Recommendations: 0
...but perhaps insurance exchanges will give you more choices.

Just one choice at this time. The ACA currently does not do a fabulous job in rural areas. There is quite a bit of upset over it as insurers pulled out of the area when the ACA came into play.

IP
Print the post Back To Top
No. of Recommendations: 2
>>>>The ACA currently does not do a fabulous job in rural areas. There is quite a bit of upset over it as insurers pulled out of the area when the ACA came into play.

IP<<<<

It was especially sharp in states that chose not to expand Medicaid.

Pre Medicare eligible retirees will love the ACA since they can go on an exchange if their health costs rise.
Print the post Back To Top
No. of Recommendations: 1
Pre Medicare eligible retirees will love the ACA since they can go on an exchange if their health costs rise.

Don't get me wrong...even with it's issues I am thrilled to have the ACA back up to retiree health care. One thing that has been made abundantly clear is that the company has the right to pull that benefit at any time, and as healthy as DH is, with pre-existing conditions from childhood he is simply not insurable outside of group health. Well, that's probably hyperbole, but short of moving to a high risk plan state and paying through the nose, or getting coverage by going back to work, it wouldn't have been possible. We budgeted an extra $20,000/year for extra insurance costs in the event retiree healthcare got cancelled on us.

I do however think the ACA will be the final death knell for retiree health care benefits. When Medicare came into play, lots of companies dropped the benefit, or minimally eliminated it once the employee qualified for Medicare. Not many industries offer it at all anymore, and soon it will be none.

Hopefully the ACA will be better understood and have more options by the time we need it. Either way, something had to be done to improve the current system. I confess I am happy that our kids will have more choices in the jobs they choose to do, no longer restricted by the potential need for group health insurance.

IP
Print the post Back To Top
No. of Recommendations: 0
As a caution, when making your inquiries be sure you not only tell them you are retired but what ages you are. There may be options available to a 58yo retiree which are not available to a 66yo retiree.

Someone also mentioned student insurance and that may be a great option but check to see when it's in effect. For example, if your son is injured in a car accident coming home between terms, is he still covered or did coverage end when the school term did?
Print the post Back To Top