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@Dave, from what I have found, this Premium Tax Credit is for people not yet 65. Income is what determines the credit. I've run a few tests at this website. https://www.healthcare.gov/see-plans/#/
From this morning's test, if you make $22,700 a year, you don't qualify for the PTC. You have to deal with medicaid. If you make $22,800 in 2018 you qualify for the largest credit. $1,410.07
At that income that same Silver plan i quoted above for $67 a month with a $3,700 deductible and $3,700 out of pocket would now be $0 monthly with a $1,200 deductible and $1,200 out of pocket. Those numbers are true if you live in the 89014 zip code, and are 62 with a 53 spouse and a $22,800 income for 2018.
Hello Everyone, I have an interesting situation and hoping someone can give me some advice. I turned 62 last Christmas (12/24/55) and chose to continue working mainly because of the cost of medical benefits. My wife doesn’t work and is 10 years younger than I. I thought I would work until 63 and hope that the premium tax credit would help me with medical benefits until 65 when I could apply for Medicare. Unfortunately for me, I really dislike my job. It is a challenge every day lately to get through the day.
I live a very simple life, and over the last 15 years saved everything I could. I was able to pay off my home last year. I have no debt and need about $1,200 a month to live the life I currently lead. When I log into the Social Security website, my estimated benefit is currently $1,707 a month at the age of 62. That number has slowly risen over the last years. A couple years ago it was $1,585; last December on my birthday it was $1,679. If I was to work to FRA (66 and 2 months) my benefit would be $2,289. I have an IRA and 401k at work and I hope to not have to touch it the first few years of retirement to see how things go.
So here is my main question, if I was to quit my job today, what should I do? So far this year I have earned $25,000. (Typically earn between 55 and 60k a year) This year I have taken a few extra early outs so I will probably come in between 50 and 55k for 2018. I understand that if I start my social security now, I will be penalized 1 dollar for every 2 earned over $17,040. If I’m at my breaking point at work, should I just quit and not start my social security benefit until next year because of the penalty phase that I am now in? I’m worried that starting now and being penalized, somehow will affect my future benefits. I’m not sure how it works. Or would you start your benefits as soon as possible and just pay the penalty for this year? I have some money in my emergency fund that can get me through the rest of 2018 if it would be better to delay the start of SS benefits until the New Year. I realize the $1,707 will probably decrease as it is based on my making the 60k I made last year.
I’m pretty clueless to how this all works, I really appreciate any advice that could be given.
Thank You!
You say you need $1200/month to live. Did you leave out the cost of paying for your wife's health insurance? I think you need to figure that in and estimate how long your money will last.
Is that tax credit you speak off ($1296 per year/$108 mo.) different from the estimated tax credit (not your premium) of $1,334.94 per month. I see that number at the top of the screen above the plans available.
Looking through the plans it appears to me that the silver may be the right choice for us. The bronze choice with the higher deductible and 14k out of pocket look scary. I guess if i had confidence in our health that would be the way to go. The silver Ambetter from SilverSummit Healthplan - Ambetter Balanced Care 4 looks attractive. $67.07 per month with a deductible of $3,700 and out of pocket of $3,700. Emergency no charge after deductible, but there is no charge for generic drugs or primary doctor and specialists are $5. I take a blood pressure and thyroid medication. My wife doesn't take any medication at all though.
So that number of $67.07 per month is for both of us? Not 67.07 each?
Thanks again for your help!
Ok I ran the numbers again for you & your spouse $31K per yr
for your specific plan. SilverSummit Healthplan Ambetter Balanced Care
$79.12 per Month For you both $3700 deductible $3700 out of pocket.
Last edited by SamTheSchmuck; 06-05-2018 at 12:18 PM..
You say you need $1200/month to live. Did you leave out the cost of paying for your wife's health insurance? I think you need to figure that in and estimate how long your money will last.
Yes I hope she qualifies to be able to get on his plan or they are going to spend alot more $$
@Dave, from what I have found, this Premium Tax Credit is for people not yet 65. Income is what determines the credit. I've run a few tests at this website. https://www.healthcare.gov/see-plans/#/
From this morning's test, if you make $22,700 a year, you don't qualify for the PTC. You have to deal with medicaid. If you make $22,800 in 2018 you qualify for the largest credit. $1,410.07
At that income that same Silver plan i quoted above for $67 a month with a $3,700 deductible and $3,700 out of pocket would now be $0 monthly with a $1,200 deductible and $1,200 out of pocket. Those numbers are true if you live in the 89014 zip code, and are 62 with a 53 spouse and a $22,800 income for 2018.
It does seem to good to be true doesn't it.
But you are making 55 grand this year. Is the plan to quit before you reach $22,700 to get these rates? if so you can thank the former President for making health care affordable to low incomes.
I think the plan should be to gut it out and get through this year. And then apply for the medical in the open enrollment period planning on an income in the low $23,000 area. If I get 1700 a month = $20,400 a year. I either pull a couple grand from an investment or work that first month of 2019 to get me into that bracket.
That would be the perfect plan. Unfortunately, after my next paycheck i will be around $27,000 and I still have 2 weeks vacation owed to me which at least will put me around 29,000. If I quit my job and applied for SS in the near future and say got 5 checks of 1700, I'm now around $37,000 for the year. The plans would now be around 200 to 300 and the deductibles and out of pocket are much higher.
So, I'm not sure what to do, and today was my Monday at work, and it was brutal.
You might want to check out medicaid. It's cheaper on you and on the taxpayer. $60 to be on the rolls regarding months you aren't using it (if you choose traditional medicaid, no private insurance co. involved). It depends upon whether you have any doctors in your area accepting it.
Thanks for the reply Sam, I looked up Medicaid for the Clark County. (Las Vegas Area) It appears there are several doctors that accept Anthem Blue Cross. Is income what determines eligibility? Since I'm around 29k for 2018 including vacation pay that's due if I was to retire now. Will what I've earned so far eliminate me, or I'm hoping its based on what will be coming in after retirement.
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