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At the Senior Center we have lots of interesting conversations about health and money. The big topic now is the end of Obama Care and the subsidies many of us get from Uncle Sam to pay for our Health Insurance. (The younger group under age 65)
Many of us are scared to death that under the Republican health care repeal and replace plan, middle income folks will get caught flat footed and have to cover their entire health insurance premium.
Right now we have a sweet deal that allows us to have a million dollar or more in assets and still get a subsidy because our actual income is low. Many of us only pull money out of a ROTH IRA or bank accounts to pay for expenses above and beyond Social Security. Roth or pulling money out of the bank is not counted as income. So my wife and I only pay a small amount ($200) for our monthly health insurance premium. (The rest is paid by the tax payers.)
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Originally Posted by Curious Investor
... Right now we have a sweet deal that allows us to have a million dollar or more in assets and still get a subsidy because our actual income is low. Many of us only pull money out of a ROTH IRA or bank accounts to pay for expenses above and beyond Social Security. Roth or pulling money out of the bank is not counted as income. So my wife and I only pay a small amount ($200) for our monthly health insurance premium. (The rest is paid by the tax payers.)
How about you?
'Retired' via loosely packed Parachute age 49 with 32 yrs service, No HC, No Pension
my "Sweet Deal" will be to relocate out of USA to get access to HC. (very ill spouse)
HC premium was...$300 / month for 5 different choices BEFORE A?(C)A all affordable options were removed with A?(C)A.
After A?(C)A premium went to $1600, now would be $2200/ month, so we are uninsured (in USA) as are many of our peers.
but HC is very cheap compared to my Property taxes ($44/ day. up from $<$3 day), same property, no improvements, just getting more worn out by the day.
I'm ripe for a change. Last yr was almost entirely away from USA and w/o healthcare. it was great while it lasted. We were lucky.
We signed up for it 2 years ago (age 59 then) and apparently our assets didn't matter. Just our income is what they based the premiums on, and we had low income so yes, are subsidized. I just got my statement from the ACA and the total the provider was billed was $128,800 . ACA "settled" for $28,000.
Stunning! A hip replacement and 2 ER visits. I won't say how low our premium is for fear of ticking off the anti-ACA's sect. But I paid into Cobra for many years and never used it back then. We are all worried about Obamacare going away, but are signing up for the National Health care plan here in our new country. $80 per couple per month, everything included.
the power of roths is not really known during our working careers . we think in terms of being in a higher tax bracket now and a lower one later so we want that deduction when working for the traditional .
once you get to retire you realize it isn't about tax brackets as much as all the things linked to taxable income .
you pay medicare premiums based on taxable income , you get a subsidy on aca plans if you need insurance pre 65 . use of zero capital gain brackets , getting your social security taxed . insane taxes on rmd's , etc all could be avoided with roths instead .
now it is to late , the bits of conversions i can do without triggering higher taxes anyway is very limited and does little .
This is a 'loop hole' that bothers me a bit.
Younger retired people that could easily pay for their insurance but since only income is counted, they are subsidized.
I know of several couples that retired in their late 50's and have much more in savings that I could ever have amassed but have low enough income and pay less a month for the two of them than I do for Medicare plus supplements( and high deductible ones, at that) for only one of me.
The OP needs to add a choice to the poll that the employer pays part and the retiree pays part for those of us that pay a substantial amount to a employer subsidized plan.
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. ACA "settled" for $28,000.
