Maybe it's been 30 years as a Federal employee.
Or maybe 15 years at the State or with an employer.
We're going to save you some of that dearly earned free time that comes with retirement.
Let's understand your health insurance options after retirement.
Everything has changed with the ACA law passage so get's get started.
Age affects the options available to California retirees so let's start there.
We'll contrast the options with retiree benefits and Cobra typically available to many people.
So you are retiring from work. What are the common options available to you?
Most people have some continuation of the group health plan.
The type of offered coverage depends on where you are retiring from?
These are the Common continuation options:
Each option has its own set of eligibility requirements and you will like receive confirmation of the plans and rates available to you.
Here's the deal.
The options can be really expensive!
This is especially true for Cobra which is basically the full cost of the employer health plan that you pay now.
FEHB and CalPers can also be very expensive depending on how long you worked there, vested amounts, and the like.
So can we do to reduce our health care costs after retirement?
The big issue we had before the ACA law passed had to do with health eligibility.
Most retirees were FORCED to keep their continuation of coverage options such as Cobra, CalPers, or FEHB.
That's all changed.
More options is always better.
That goes for Retirement benefits as well.
So what changed?
ACA Law affects options for Retirees
With the passing of the ACA law, coverage is now guaranteed issue.
All good news.
But wait! (we're not going to offer a bonus anything if you act now!)
Even better than another set of steak knives.
This really is the deciding factor.
Take a look at the income levels below.
If your income is within this range, you'll likely qualify for very large tax credits.
We're finding that retirees are qualifying for very large tax credits for two reasons:
Let's look at each piece for a retiree and then we'll look at any downside.
A few key points specific to retirees when it comes to income levels:
Those are the broad points but with a 5 minute call, we can quickly size up what to expect for your situation.
We need to include spouse's income in the calculation even if they are not enrolling.
The tax credit is based on household income.
When trying to calculate your tax credit, estimate your w2 income for the full calendar year.
Self-employment income is the net business income (after business expenses are removed). This can have a big impact on the final number.
Again, the number that flows to the 1040 for self employment income (including rental income) is what we want to use for our estimate.
Split year income during and after retirement
Keep in mind that your tax credit will likely change for the following year.
The next year might be very different!
Working income goes away and most individuals or couples rely on retirement income, interest, and Social Security.
We may have one tax credit for this year another one for the outgoing years.
Again, we can analyze all of this for you.
Even though Social Security is generally not taxed (doesn't show on the 1040 line 37), we still need to include it in our income estimate.
This can be trickier. Is the gain taxable?
That's the key factor. Many retirees are taking gains or assets from retirement accounts such as 401K's.
If the money is taxable, we include it.
If not, we generally do not.
This becomes a tax issue. The line 37 on the 1040 is a good indicator except for tax free interest which IS included.
Again, there are many wrinkles to everyone's income situation so call us.
Here's the little secret that became pretty obvious after funning a few 100 tax credit quotes for Californians.
Why is this?
It has to with the structure of the law but there's actually a though process behind it.
Health insurance rates have always been tied to age.
On average, a person's health care costs double with each decade of their life
Rates became really expensive as we got into our 50's and 60's.
The law looked at ways to protect Californians that are getting doubly hit
People in their 60's were finding that they could not afford to retire purely because of health care cost!
The ACA law basically says this:
For a retiree, the rate could be $800/month for a Silver plan.
If a person has retirement income of $2400/month, health insurance would eat up 1/3 of gross income!
That's the issue for many retirees and the ACA addressed it.
In the above situation, the premium might be capped at $240 worst case.
It's on a sliding scale.
So let's see what you might eligible for. Retirees are definitely one of
the intended groups that the ACA law is designed to help.
There is one item we want to check first.
We want to check doctors first to make sure that critical doctors or hospitals are in the new network.
There's no way around this since both Covered Ca and off-Exchange plans have the same narrow networks.
We can quickly check your doctors. Email us their name and city.
The drug formulary or list of doctors is also smaller so we'll want to check this as well.
In most cases, the premium savings is so large, the network and drug formulary difference becomes a secondary issue.
There's a big difference for people over age 65.
Have you heard of it?
If you're nearing 65, you probably get attacked with brochures.
If you are over 65 or older, the calculus changes in terms of retirement and health benefits.
Now, we can get Medicare (Part A and B), a Supplement or Advantage plan, and a Part D (for RX).
A person should have very little out of pocket for medical expenses with this set-up.
For people who are more budget constrained, the Advantage plans can be low or no cost.
You can quote both Medicare supplements and Advantage plans here.
Medicare versus Retirement benefit plan networks
What about doctors?
Basically, if the doctors take Medicare, you're fine with a supplement.
Advantage plans work more like HMO's so they will have more narrow options but the trade off is that the pricing can be....well ZERO.
So Med Sups...nationwide Medicare network.
Advantage plans....smaller local networks but low/no cost as a trade off.
We can look at your particular situation and find the best value for your
Make sure to speak with a professional before losing for forgoing retirement benefits.
For most retirement options, if you decline the coverage, you may not be able to get them back.
It's important to know the pro's and con's of each plan.
Put together a list of your doctors (and their cities). We can quickly make sure your doctors and/or hospitals participate in the plans available (including Medicare). Email this to email@example.com and we'll get to work right away.
There's no cost for our service as licensed California health insurance
agents. Call us at 800-320-6269
Again, there is absolutely no cost to you for our services. Call 800-320-6269 Today!
YOU MAY STILL BE
ABLE TO ENROLL
In just 15 minutes:
We can help you:
Current Years Estimate; All those that file together on one 1040:
|Single Person:||$16k - $47k|
|2 People||$22k - $64k|
|3 People||$27k - $80k|
|4 People||$33k - $97k|
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20 years of experience in the California health insurance market has taught us one thing...Competent and experienced guidance is Invaluable
We can quickly (very important) size up your health insurance needs and clearly explain the options available to you. Our focus is finding the most coverage at the best cost to you.
We are licensed Covered Ca agents with in-depth knowledge of their plans, process, and tax credits.
Call us...you will be Pleasantly Surprised. 800-320-6269
We'll quickly see if you have the best priced plan available and if you qualify for a tax credit800-320-6269
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