Health insurance at retirement (plan, coverage, benefits, claim)

[nybklyn]

If I retire in the future, and I have 401k money I save and maybe collection social security benefit, but I don't have a job, what's my health insurance option?

[Ariadne22]

Under 65 - enroll in ACA insurance at either your state exchange or healthcare.gov if your state does not have an exchange.

65 and over - enroll in Medicare Parts A & B. Also, see an insurance broker in your state specializing in Medicare solutions. Medicare is not 100% coverage. You need additional coverage besides just Medicare. So, talk to an insurance professional in your state, as well.

[nybklyn]

Originally Posted by Ariadne22

Under 65 - enroll in ACA insurance at either your state exchange or healthcare.gov if your state does not have an exchange.

65 and over - enroll in Medicare Parts A & B. Also, see an insurance broker in your state specializing in Medicare solutions. Medicare is not 100% coverage. You need additional coverage besides just Medicare. So, talk to an insurance professional in your state, as well.

So, if I'm under 65, I won't be able to claim for medicaid if I don't have any income besides the 401k and the social security benefit?

Also, if I enroll in medicare, what's the coverage for that?

[Ariadne22]

So, why didn't you bring up low-income and Medicaid in your first post. The assumption is you can afford to retire unless you tell us otherwise.

Medicaid is for low-income below and over 65 (over 65 Medicare is primary, Medicaid secondary). No idea if you qualify for Medicaid because EACH STATE is different in its requirements. You need to apply for Medicaid through your state. No one here can tell you if you qualify.

What does Medicare cover?? See this:

What Medicare covers | Medicare.gov

[nybklyn]

Originally Posted by Ariadne22

So, why didn't you bring up low-income and Medicaid in your first post. The assumption is you can afford to retire unless you tell us otherwise.

Medicaid is for low-income below and over 65 (over 65 Medicare is primary, Medicaid secondary). No idea if you qualify for Medicaid because EACH STATE is different in its requirements. You need to apply for Medicaid through your state. No one here can tell you if you qualify.

What does Medicare cover?? See this:

What Medicare covers | Medicare.gov

Assuming that I am under 65 as of now, and retire, in NYC, with no job and no income besides the 401k that I had save in the past.

[Ariadne22]

Originally Posted by guangzl1

Assuming that I am under 65 as of now, and retire, in NYC, with no job and no income besides the 401k that I had save in the past.

We're back to this:

Originally Posted by Ariadne22

Under 65 - enroll in ACA insurance at either your state exchange or healthcare.gov if your state does not have an exchange.

First you apply through the NY ACA exchange.

New York State of Health | The Official Health Plan Marketplace for New York State
'
If your income is too low, the exchange will tell you to apply for Medicaid.

[nybklyn]

Originally Posted by Ariadne22

We're back to this:

First you apply through the NY ACA exchange.

New York State of Health | The Official Health Plan Marketplace for New York State
'
If your income is too low, the exchange will tell you to apply for Medicaid.

Thank you, that's helpful.

[LakeLifePA]

Your 401k income (converted to an annuity) could be $100k a year for all we know. You are telling us nothing and being vague on purpose. My guess is that if you retire before 65 you'll be forced to pay for insurance like everyone else if your employer does not provide it for you as part of a retirement package. Why do you think people jump at jobs with retirement benefits?

[Ariadne22]

Originally Posted by Robert20170

You are telling us nothing and being vague on purpose.

Thank you. Beyond annoying to be pulling hen's teeth for basic information.

[modhatter]

It really all depends what income you will be pulling from your 401K. If your total income is somewhere below $16,000 a year, you will probably qualify for Medicaid. If it is more, say $25,000 then you should seek out a Silver Plan on the Exchange as they offer cost sharing and everything will be reduced for you with the Silver Plan. If you make $35,000 and up, your subsidy will be quite small and maybe you should consider a Bronze plan just for major illness. I am assuming you are single. If you are married all numbers could change.

You stated "if I collect social security", so I assuming you are talking about collecting at 62 (something I would strongly advise against, unless absolutely necessary) If you collect social security, than the Federal government will count this as part of your income coupled with what you pull out yearly from your 401K. So if you pull $12,000 from social security at 62, and another $15,000 from your 401K, you will have a combined income of $27,000.

If things are really tight for you, and this is so hard for anyone to give you good advise, as we don't know what your social security amount will be and we don't know how much you have saved in your 401K, and we don't know how expensive the cost of living is where you are living, so we are all grabbing at straws here.

However, if it were me, and things were going to be tight, I might consider renting a room from someone for say $400-$500 a month (it all depends where you live) where most utilities, internet, tv etc. was included, and only draw what is absolutely nec. (say $15,000 a year) from your 401K (depending on it's size) and wait until you reach 66 to draw social security. If $15,000 is too much to take from your 401K, you might consider half that amount and filling in the missing needed income with a part time job say three days a week.