Health insurance for 60 yr olds

[loginname]

I'm working with some clients who want to retire at age 60 (they are 56 now). The husband works for the local school district and has good medical benefits now. What kind of medical insurance will they be able to buy at age 60? They will have to bridge the gap between retirement at Medicare (age 66).

Thoughts? Ideas?

 

[bluemarlin08]

The BIG problem is what happens between now and age 60. What if there is a change in health in either spouse. At the least I would look at rolling the non employee spouse to an individual plan, but also look at the cost to move both, assuming they are both healthy. I work quite a few clients in this position and they are often surprised at their inability to get adequate coverage due to medical conditions.

 

[J.R.]

Agreed. Look into a HSA for them if their healthy. Between the normal contribution for families and the catch up contributions they can save up a substantial amount of money to help off their Medicare costs.

Hopefully by that time MSA's will be more attractive.

 

[moonlightandmargaritas]

I'm working with some clients who want to retire at age 60 (they are 56 now). The husband works for the local school district and has good medical benefits now. What kind of medical insurance will they be able to buy at age 60? They will have to bridge the gap between retirement at Medicare (age 66).

Thoughts? Ideas?

This is a major consideration in whether folks "retire early" or not. If they're healthy and insurable at 60 - great - but many are not. In the absence of affordable coverage (or a state risk pool that's affordable) they may have to continue to work for the health benefits.

BTW-They are eligible for Medicare at 65, not 66. Their full retirement age for Social Security may be 66, but they get Medicare at 65 if they want.

 

[TXINSURANCE]

I hear this all the time "These insurance companies don't take anyone over 60..." which of course is false. The options vary drastically by state.

If they are healthy they can pick up an individual plan, if not most states have pools, they might have COBRA option, or HIPAA option / conversion.

Reminds me of a call I received from someone who moved to Texas from California to retire, early 60's age. She bought her home in CA for $40k or so and sold it many years later for almost $1mill. She has tons of money in the bank, and is not hurting.

She is medically uninsurable in the individual market.

I sent her to the Texas Risk Pool which was maybe $500/mo (or less) at the time and I get this response "I would have never moved to Texas if I knew this, I can't afford this!!!"

At $500/mo this is $6k per year, over 4 years to Medicare this is a whopping $24,000 - big deal (for her this is like a quarter in your jeans pocket).

 

[Colorado Newbie]

I'm working with some clients who want to retire at age 60 (they are 56 now). The husband works for the local school district and has good medical benefits now. What kind of medical insurance will they be able to buy at age 60? They will have to bridge the gap between retirement at Medicare (age 66).

Thoughts? Ideas?

whenever I come across this situation I always try and sell them Anthem Luminous HDHP. Great plan for someone that needs to have wellness checks.

 

[loginname]

The husband had heart surgery as a child (to fix a hole) and has been healthy since. The wife is a different story. She had a major seizure about 8 months ago and is on anti-seizure medication. I'm assuming health carriers would not even consider coverage for her.

 

[bluemarlin08]

He can probably get coverage, she would have to go COBRA, then a HIPPA plan. If he isn't on meds, I would apply with Assurant health questions only pertain to the past 5 years except cancer.

 

[moonlightandmargaritas]

The husband had heart surgery as a child (to fix a hole) and has been healthy since. The wife is a different story. She had a major seizure about 8 months ago and is on anti-seizure medication. I'm assuming health carriers would not even consider coverage for her.

They better plan to keep workin'...

 

[retread]

Please keep in mind that I am not offering advice here, just posing a question:

How about mini-meds in this situation? If they have to keep expenses down, don't have the money or can't qualify for a MajMed, and they think their risk for large medical expense is low, wouldn't this fit the bill?