How does medical work for retirees?
Had trouble finding this info in HR website. Thank you.
No, it’s called optimism. Don’t look like you’re dead before you’re dead.
@1ncg+15un28jP, Really? Why not think about needing medical coverage positively? Doesn't even make sense. You must come from that land of gum drops and sugar plum fairies I hear about.
The pre-65 100% Chevron match is not $100/month. @1omk+15un28jP is way off and it is much higher. Must be looking at the post-65 benefits.
Also, why does @1mar+15un28jP think that a retiree's income will be well lower in retirement to qualify for low Obamacare healthcare? Obamacare limits income to about $138k for a premium credit, and long time Chevron workers retiring likely have that or more in pension, 401K distributions, and passive income to start.
Also the majority of higher end Obamacare policies don't cover full hospital stays or emergency situations, and leave you holding risk of somewhere around 20% of those costs, which could k–l a nest egg. If you know of good ACA policies that don't, let us know.
Instead of thinking about sickness, poor health, healthcare, obamacare and whatever else, why not think positively about good health, exercise, good diet, living well, etc.
Cobra ends 6 months after lay-off, not one year. You can join the ACA after Cobra ends. No need to wait for Obamacare open enrollment on November 15, but you will have to keep your federal MAGI as low as possible to get maximum premium tax credits to keep the monthly premium low. Not everyone retiring will manage to do this. After 65 you switch to a Medicare Advantage Plan under Chevron retiree medical and pay a bit over $100/month and Chevron will contribute a similar amount if you have 80% plus match. Look into info now while you can and prepare yourself ahead of time. You can contact HR if you want, but from experience, they won’t be too helpful. They will give you vague information, maybe a little guidance, but not specific enough info to answer your questions adequately. Start researching outside sources now. The info is available, especially from other Chevron retirees who went through this already.
Check HR for all the details, lots of questionable info here (including probably my post below ... ;-). I priced out pre-65 coverage to be about $1200/mo. for myself and spouse (including deductibles of PPO and the 100% Chevron match, the latter which is only about $100/mo.). If you get laid off this round Chevron funds most for one year (you play the same as an employee). After that see numbers above. You can not join ACA insurance and then switch back to the Chevron plan if you do not like it (two years ago that was the case but no longer). Now you have narrow windows to join Chevron’s plans (once when you retire or Cobra ends after lay-off and a second time when you start Medicare at 65). After 65 you pay a bit over $100/mo. and Chevron pays similar if you have 80% plus match, for an Medicare advantage plan. It is enough money you need real numbers for planning...contact HR or visit their web pages!
Since your income should be very low in retirement you can get Obamacare for next to nothing. If it ever ends you can sign up for the speedy Chevron plan.
@1qxq, My Dad worked for Chevron for 33 years. He retired at 65 and as such, stayed with the Chevron retiree medical plan he had, which was converted to a Medicare Advantage Plan. His Doctors and Hospital remained unchanged. My Mom was a few years younger than 65 at the time, so I don’t know how that worked out premium wise. But I can tell you that when both of them were post-65, their premiums were under $100 per month, after Chevron applied the 100% Chevron medical contribution amount. They had Medicare Part B included in their plan. Today, it’s only my Mom on the same plan after my Dad passed away. She receives the same medical contribution amount each month and her monthly premiums have reduced. I’m not sure where you are getting the notion that it’s expensive and not much different in cost than a pre-65 Chevron medical plan. That’s not the case at all. It’s much more affordable. The means testing thing you mentioned is also foreign to me. My Dad was a highly paid engineer and yet, the medical coverage for him and my Mom was and is still very low.
Between retirement and 65 you can maintain the same insurance you had as an employee. The difference is the cost sharing between the employee and Chevron. As an employee Chevron picks up 90%. Upon retirement Chevron pays 50% if you have 90 points. I currently have the BCBS PPO plan with coverage for myself, wife and children. I had 82 points at retirement. My monthly cost is $1092. The children only add about $150 to the monthly cost. When you turn 65 you go on Medicare and Chevron pays you a monthly stipend of $90 to $100 to use on supplemental insurance or you can just keep the money if you don’t buy supplemental insurance. As the earlier poster said your Medicare cost is based on your income. Its based on the two previous years before the current year of coverage.
If your wife is younger she can stay on the Chevron insurance as a spouse until she reaches 65. Not sure the cost but should be equivalent to an individual.
I believe you can check the Benefits Connect site for an estimate of post retirement insurance costs.
One final point, Medicare Part B is means tested. The minimum you pay is about $130 per month. However, the higher your salary in your final year of employment, the more you pay in Medicare. Bottom line, if you are expected your medical premiums to reduce significantly post-retirement, prepare yourself because it likely won't decrease that much.
When you go on Medicare you get a small amount that helps you pay for your premium. It isn’t much, most likely less than $120/mo. If it is that much, you make a lot of money which means that your Medicare premium will be very high too... between retirement age and 65 there is pre-retirement insurance through Chevron, it is expensive, like $600+/mo