Lainey

I just got the renewals for our health insurance at my office. Almost another 20% increase for the coming year.

Neither Rick nor I work for big companies, so it's doubtful insurance would be "portable" at retirement,(which is a long way off). Right now we keep the cost down by taking individual plans at our respective places of employment. That could change in an instant, with sickness, the loss of a job, etc.

An employee premium contribution at small companies is often over $600.00/month for a family plan, which can put a dent in retirement savings.

It will make it difficult to retire before 65 when the cost of health insurance(if you have to buy it yourself) is now almost twice what many of us may have paid for our mortgages.

A health plan for two, say from age 62 until 65 purchased out of a group, will certainly exceed $1000.00/month.(taking a big chunk of retirement savings) At age 65 or later, depending on the current law, you are Medicare Eligible. Then you need the Medicare supplment, and that's not cheap either.


Can anyone fix this? Kerry? Bush? Hillary???

None of the above!

Morris

Look into medical savings accounts. You go to a high deductible plan, lowering premiums, and pay doctor visits and other medical expenses out of the tax deductible savings account. This is a quick explanation, but something I am doing January 1 as a self employed person.

Lainey

That is a thought if we get to the point of retirement and need to insure on our own.

The whole system is such a mess and truly wonder what it will be like as we baby boomers get on in years.

I've also learned that if at all possible you can't let your coverage lapse between policies even for a day, as then any medical condition you have may be considered a "pre existing condition" and you will be subject to various restrictions regarding treatment.

ralper

I too have wondered why the cost of health insurance, and the cost of healthcare, has skyrocketted. In every discussion I've heard everyone seems to blame everyone else. It reminds me of the old Thomas Nast cartoon about Boss Tweed of New York during the Tammany Hall days titled "Who took the peoples money". The men, all overstuffed, are standing in a circle, arms crossed across their chests, pointing at each other.

I wonder if anyone can really get a grip on the problem and straighten it out.

jbbrann

It is a mess, I work in the Insurance biz. I work with employers who have self funded benefit plans. Their premiums are going up while the levels of benefits are getting worse (high deductibles, $100 plus copays for ER, etc.) Want to make some major money - get into disease management. Best you can hope for is for Medicare to still exist and a to get a good cheap Medicare supplement. We've got a couple of clients who offer great benefits to their Retirees (as little as $40/month/person for Medicare supplement or $80/month for pre-65 (no Medicare)). My strategy - get as rich as possible before retirement

anarky

That seems to be happening across the board as health care costs rise.
I, personally, am not counting on Medicare to be around. I think that as costs rise either the taxes and premiums will go though the roof or the system will collapse under it's own weight and corruption.

paivag

Wow Lainey nice perspective you put on here. I mean all I know is that I pay around ~$20 bi-weekly out of my paycheck for heathcare. I do work for top 10 largest company. I'd have to check what they offer if I was to stay long enough to be vested into the company, which is one year away.

Oh btw, I won't even go into retirement savings and social security. Although I have always participated in the 401k plans and am amazed at the small fortune I am accumilating already. I still have 37 years of work before I start realizing any retirement benefits.

Lainey

Keep saving George.

We'll be broke because we spent so much for health insurance, we'll need to hit you up for a loan for gas money for the "S"'s