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Old 05-20-2014, 04:42 PM
 
676 posts, read 746,160 times
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I retired when I turned 62 my health insurance is 244.00 a month just for me. When I turn 65 it will be much lower. It is a strain on me right now to pay this much. I am very healthy and am on 2 medications. Can I drop my insurance now and pick it back up again when I turn 65 ??? Is that legal...?
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Old 05-20-2014, 04:57 PM
 
Location: MMU->ABE->ATL->ASH
9,128 posts, read 17,152,817 times
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Can I drop my insurance now and pick it back up again when I turn 65 ???

Yes
Is that legal...?

Not with ACA (obamacare) you are required to have insurance or pay a tax

If you can you might want to "Limit" taxable income, and see if the ACA will give you discounted ins.

you might want to read over:
Retiring at 55 with Obamacare?
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Old 05-20-2014, 04:59 PM
 
4,574 posts, read 7,063,489 times
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well, you would be eligible for Medicare at 65. But Part B is like $107 a month, then you would have to pay another cost for a supplemental plan (cost would vary depending on what you want). Honestly, to me health insurance is right at the top of the budget list because you never know when your health will change, and it can very suddenly some times. Are you prepared to cover all your insurance expenses yourself should you get sick or hospitalized? That could run in the many thousands of dollars. What about Obamacare?

I know insurance is expensive but maybe there are things in your budget that you could cut back on to keep it for a few more years. It might end up being the best money you ever spent.

Oh yeah, I forgot about the Obamacare tax, that's a couple hundred dollars, isn't it?
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Old 05-20-2014, 05:02 PM
 
Location: OH>IL>CO>CT
5,238 posts, read 8,413,404 times
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You should repost this to the Health Insurance forum at http://www.city-data.com/forum/health-insurance/ to access the "experts" that help there.

Also provide at little more detail.. Insurance plans vary for many reasons.
Is this an individual ACA/Obamacare plan ?
A retired employee benefit plan ?
Why will it be lower at 65 ? (maybe Medicare becomes primary payer, and retiree plan becomes secondary ?)
What do your meds cost if you pay 100% ?
What will your total income be at age 65 ?

Also, per your other thread re divorce, if your only income is $1400/mo, you may eligible for Medicaid now.
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Old 05-20-2014, 05:53 PM
 
2,601 posts, read 5,296,825 times
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> Can I drop my insurance now and pick it back up again when I turn 65 ???

Apart from the issues of penalties...it really depends on your risk tolerance and how much you have in assets. A serious but survivable illness could put you hundreds of thousands of dollars in the hole.
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Old 05-20-2014, 06:59 PM
 
Location: Vermont
1,018 posts, read 1,421,901 times
Reputation: 1994
Would you feel comfortable dropping insurance on a $50,000 car? How about your house insurance? Insurance is about managing risk. You could do fine or you could be devastated financially. I personally wouldn't risk it.
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Old 05-20-2014, 07:21 PM
 
Location: Lakeland, Florida
6,973 posts, read 12,494,406 times
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I would not even consider canx your insurance. Believe me when I say one never knows when huge medical bills will hit you. They can come out of nowhere, and it seems as we get to our 60's we start to realize just that. I don't understand what you mean, things will be cheaper when your 65. Do you plan on just getting A and B and not having a supplement? I know in my case my Blue Cross thru my pension is currently $150 a month plus $45 for Dental. In 6 months I will be 65 and I will take Part A and B for the current cost. So my health insurance costs will go way up from what they are now. So I'm not sure how yours will be cheaper other than what I mentioned. You really need a supplement to Part A and B or things could get real expensive.
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Old 05-20-2014, 07:53 PM
 
11,137 posts, read 8,551,921 times
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To clarify, it is perfectly LEGAL to not have insurance. You may have to pay a small fee (as low as $99). That's little to pay in case you end up sick while uninsured and we (the taxpayers) have to pay the rest of your bill.
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Old 05-21-2014, 09:59 AM
 
Location: Florida
4,366 posts, read 3,706,500 times
Reputation: 4111
I would be afraid to drop the plan. See if your (or any) company has a high deductible plan at a lower cost. Maybe the gov. plan will get you a better price as your income may qualify you for a substudy.
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Old 05-21-2014, 11:22 AM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,618 posts, read 39,986,663 times
Reputation: 23772
Dropping INS will come back to bite you.

There will be a gap in coverage. While ACA is supposed to be 'take all comers', it really isn't, and it favors ins companies and lobbyists that have a whole lot more to say about your ins than you do.

If you drop, keep some $$ to leave USA for care. The fine for not having ACA coverage is tied to IRS, and you will pay dearly (maybe for many yrs) the talk is that the longer you delay coverage, the longer and more expensive the fines, and they can GET it (IRS) from ANY of your assets / income.
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