How does medical work for retirees?
Had trouble finding this info in HR website. Thank you.
Man, you guys really don’t know much, do you? You must get as much as possible wherever you can get it. Why do you scratch your way up the ladder in your career and in life? Not to do better than the next guy? Of course. It’s no different if you can get something from the government, so long as you play by their rules or outfox them for it. Remember this simple thing in life, nobody will give you anything for free or cheap. If you are fortunate or smart enough to be able get medical good insurance cheap or free, don’t be a dope. Take it before someone else does, silly.
It takes some finagling but ACA is definitely the smart choice. It will save us more than six figures before we are 65! I prefer that to funding more golf trips for the mo–n in the oval orifice.
Yes, me too. I enjoy being a parasitic leech on others who are less fortunate than me even when I can afford to pay my own way without any change in lifestyle, but I am just selfish like that. I always come up with that same line "I paid my dues", I love to use that one. It really doesn't matter to me that it's actually the hard working middle class trying to feed their families, most all less well off than me, who are footing the bill. Doesn't bother me one bit - lol!
I also paid my own way through life to a point that I've earned it to recoup some of it. The government allowed my hard earned tax money to be squandered in so many bad ways, that getting some of it back by playing poor on the ACA Exchange is a welcomed thing.
I had the same issue, as someone below, I cannot get a good deal on the exchange because of my income and there's literally no "stopping" it. I suppose that's a good problem to have. On the other hand, it's probably not too bad to be able to mooch off others like a parasite when you get old as one person put it. That's not exactly my cup of tea, though. I prefer to pay my own way, I've earned it. To each his own....
Yes, I am ignorant and blissful that I have the best insurance that other people's money can buy for me. I love being a parasitic leech on the rest of society, It's simply "Blissful"!
Yes, I am ignorant and blissful that I have the best insurance that other people's money can buy for me. I love being a parasitic leech on the rest of society, It's simply "Blissful"!
As they say, you are blissful.
As they say, ignorance is bliss.
Well good for you @dedw. That’s why Baskin Robbins has 31 flavors of ice cream. There’s something for most anyone. You found yours and I found mine.
Yes, that certainly make sense, if you are "not sickly" and never need to use it, then you should be ok with having little to no usable insurance. just knock on wood and hope you never need it. - lol. On a different note, I am happy to be paying less for my Anthem blue-cross than the ACA cost was and my annual deductible per person is maxed at less than $1900 to $3000. I guess I got lucky. I am also not very sickly either, so that may help.
The ACA has been working well for me and spouse for the last 4 years. I plan to keep my ACA plan for two more years until I’m 65 and can switch to a Medicare Advantage Plan until post-65 Chevron Retiree Medical. We are not sickly people and often go years before seeing our Doctor, much less a needed procedure. The way we are using the ACA to stay insured and save big bucks in the interim is choosing a Marketplace plan that is accepted by our PCP Doctor, the specialists we would use if needed and our hospitals of choice, and which policy works with set copays for PCP, Specialist, Emergency and Pr-scrip-ion D–gs without first having to pay the annual deductible. Our intent is to only pay copays for preventive medicine and doctor office consultation only to get a needed d–g pr-scrip-ion. Our plan’s annual deductible per person is maxed at between $1900 to $3000 which won’t break the bank if God forbid, a medical procedure is necessary. The money we’ve saved in premiums so far in 4 years will more than cover any annual deductible that may be needed if we require an operation or non preventive medical procedure. In two more years when I switch for the first time to the Chevron post-65 retiree medical, our premiums will be just as low as they are now under the ACA and I can rest more assured my medical coverage is good and I don’t need to be playing games with my income to get affordable coverage.
@6iin, Yea, I had the same experience. I looked at the ACA plans and prices and could not find anything there that was comparable for the same price as the retiree plans, which is the same as the employee, as far as I know, just at a higher cost. I stuck with the retiree for a smooth transition and to have a better quality insurance plan in case anything happens. The plan that I am getting for me & the wife is better than the ACA offering at about the same price. I would not trust the ACA plans, haven't heard much good about them. They are fine if you don't get sick, as they say.
The enhanced COBRA will cost same as it costs you as an employee, which is less than private insurance but more than ACA. Shop for ACA after you are fired and switch over in 2021 when your income will be nil.
6tdw: Cobra allows you to keep Chevron’s health ins. for a time after your employment ends (typically 6 mo.), but you have to pay the full cost. Chevron’s extended Cobra extends that coverage option for a year and pays a significant percent of the costs (same amount is pays for active employees). After Cobra ends you have a one time option to continue on Chevron’s plan until 65, but if you ever drop you can not rejoin. At 65 you have another one time option to join the post 65 plan. So short answer, Cobra coverage is the Chevron health plan for a limited time after employment ends.
Will the enhanced cobra for a year cost more then just using the cvx medical during that time frame?
@6qnu, I’ve been retired from Chevron for 4 years. I’m not 65 yet, so I’m on the ACA and have nothing to complain about. My premiums all along, after the subsidy, have ranged between $45 to $85 per month. I’ve had no service or billing problems or complaints with our doctors or hospitals to date. Both my spouse and I use our ACA plan each year and are very satisfied. We live in the Greater Houston area, Texas.
I shopped around with the ACA on the exchanges and really couldn't find anything that I was happy with at a comparable price with the ACA, they both were reasonable, the ACA and the CVX retiree options, and I would have been happy accepting either one that fit the bill but the ACA did not offer as good of a deal for the top tier plan that I wanted. I suppose it varies from person to person and how much subsidy you get.
There really is no retiree medical. You can get a better plan on the open market, to be honest, even without the generous ACA subsidies. Shop around.
@6cjy, The Medigap policy covers coinsurance only after you've paid the deductible (unless the Medigap policy also pays the deductible). There’s no reason why you not go on the post-65 Chevron Medical Plans. See this reference here — https://www.medicare.gov/supplements-other-insurance/how-to-compare-medigap-policies
If at 65 i go on medicare and medigap G, is there any reason to still maintain my chevron medical as a secondary insurance?
I’m going for ACA as well. I can use the $150k it saves me over ten years on my car hobby. Sweet!
https://ournextlife.com/2016/02/01/the-moral-ambiguity-of-obamacare-subsidies-for-early-retirees/
Since when is tax optimization unethical? ACA is part of the tax code.
Have at least 5 years of expenses in a taxable account. Have those funds in a combo of cash and the most tax efficient funds possible.
Then you take your 401k and turn it into rollover pre-tax Ira, and then put your lump sum pension in a pre-tax IRA. You start converting about 35000-40000 a year (or whatever you’re comfortable with based on your family subsidy cliff — see below) into a Roth IRA from your pre-tax IRAs. This will constitute your entire yearly income and keep you qualifying for ACA subsidies and maybe other things if you have dependents. In 5 years, all of this conversion is available to you without the 10% penalty and before age 59.5. This works best for those in a position to be retiring very early, but the principle holds as well for those just trying to get to 65 without outrageous ACA costs.
More info:
https://www.brandonrenfro.com/roth-conversion-ladder/
https://www.ehealthinsurance.com/resources/individual-and-family/who-is-affected-by-the-aca-subsidy-cliff
Enjoy.
There are very few with high capital gains that can not shield these gains from income tax because you only play when you sell. Without an estate tax the really well off would never pay any tax on most of their gains, because they structure all gains to never become “sold”. That said, the Roth rollover loophole is the mechanism most available to the less than 1% (but upper %20) to “play poor” enough to apply for government poverty benefits... for those low life’s how would do such legal but unethical things.
If you are the grantor and trustee all the trust income will be considered your personal income, even if you have spouse as co owner. Any other bright ideas? If this is about rental income maybe incorporate.
@4ftp. Some trusts are co ownerships some are not. But with a trust you can keep the money out of your name and in the trusts name. i.e. you lower your personal income. You overall tax personal and trust together it’s the same but you as a person it is lower. Meaning you can take advantage of all this free stuff we hand out in this country to people at the bottom 44% who don’t pay taxes and yet somehow show up Driving a nicer car then I drive holding nicer and newer iPhones then i have in my pocket. Look I have paid a lot of taxes over the years but when I retire and can take advantage of this messed up Robin Hood system we have I will. And with all this stuff going on these days it’s probable only going to get worse for those who do pay taxes and support the other 44% of Americans.
ACA is healthcare as it should be - nearly free. Only a s—er would pay. I guess if you had a really big rental income or something that would be a different matter but most don’t.
@3imb, That would be 100% false. Do some more research. Sure, there are ways to set up a pure cash or Roth diet, but at some point you would have needed to pay the taxes. It's only a matter of when you will pay those taxes. As has been mentioned here already, in many cases, if not all, the money you save by playing poor to use the tax-payer subsidized welfare type health insurance is less than what you lose in taxes to set that up. The difference in the welfare, low rent bottom feeder loser insurance is not that much from the comparable retiree plan for the few years that you need it. Did you guys work hard all of your lives to basically go on Welfare/Medicaid for health insurance?
Not me, I would rather pay for the premium stuff and know that I can afford it. what are you saving it for, a fancier coffin 20-30 years later, lol?
Um, living trusts do not impact taxes. Nice try. But you don’t need one. Unless you are working in retirement you will have little or no taxable income.
The key. Start a living trust.
The trust owns everything. You have nothing but the trust actually pays for all fixed expenses. Then you have little to no income in your name but the trust has a lot of income or gains on it. You qualify for all the stuff our Democratic system provides, heck you paid into it more then the others, take advantage of it.
The popular Medigap F is no longer open to new enrollment. It is being replaced by slightly cheaper G which will not pay the approx $185 deductible. I believe there is also the option for plan n which is similar.
Do any post-65 Chevron retirees take medigap plan such as plan F or G instead of medical advantage? Or Is it even offered as as option. Also based on these posts, the only “benefit” with 100% vested is $100+ from Chevron and nothing else which is barely enough to cover Part B.
Insurance is quite boring until you find out you don’t have enough or are overpaying. Then it can become very exciting,
I don’t think that’s true. The subsidies get smaller and smaller and then phase out at 48k.
I agee, Obamacare is the smart choice. Some of the plans are quite good and all cover hospital and emergency. You don’t have to take 401k RMDs until age 70, by which time you are on Medicare. You can have $48k in any type of taxable income and still get full Obamacare subsidies. It’s a great deal and has saved retirees a fortune.
You can get good plans on the ACA exchange (gold), and also not very good one (bronze)... you get what you pay for. If you get, for example a United health plan on the exchange it is no different than one offered by an employer. In Texas a gold ACA plan is a little cheaper than Chevron’s pre-65, but one can never be sure what any of these plans will be next year, which is a problem. Chevron’s plan can change also but I expect it to be bit more stable than ACA plans. Note however Chevron Pre-65 is no longer the same plan as active employees: today it is similar but it is officially a different plan as of last year.
“why does @1mar+15un28jP think that a retiree's income will be well lower in retirement to qualify for low Obamacare healthcare”... this has been well covered in previous thread. There are some that brag about lowering their reported income so that they qualify for ACA subsidies despite being millionaires ... not hard to do as you can convert IRA moneys to Roth one year and then ROTH withdrawals subsequent years do not count as income. I consider that unethical (but it is not illegal)....besides for most the loss of tax free Roth growth probably more than offsets the ACA subsidies by the time you die.
@1qiy FYI The enhanced severance package extended cobra coverage from 6 mo to a year.
Does medicare have more then plan A and plan B? If so, how much do they cost and which ones are best to have?