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Health Insurance Costs In Retirement Question & Answers

2013 November 1
by Sarah Fields

Donna asks…

Retirement, health care, & bankruptcy how does it work?

I heard you have to go bankrupt before the government helps your medical bill after retirement. In the first place, if you have health insurance, wouldn’t it cover your medical cost? (on average how much of the cost they would cover?) Secondly, what kind of income would you have earned that you cannot pay your part of the medical bill?

What is your advice for a younger person who wants to avoid bankruptcy and wnats to maintain good health and some money at retirement.

Thanks in advance.

Sarah Fields answers:

I just read that a person aged 30 will have to have saved
200,000 just for medical expenses in retirement (out of pocket).
The best bet for this sum is a ROTH – since you can take out as much as you want without tax consequenses.
The gvt provides medicare for everyone – I think.
It’s just some people think the out of pocket is too much and they take out extra insurance. – don’t quote me.

“retirement calculator” and have some
I think msn money has one too.

Lizzie asks…

If there was affordable health insurance would there be early retirements and jobs for the youth?

I know several that work just for the health insurance.

Sarah Fields answers:

Years ago for my parents and most people who grew up in the last 70 to 80 years, when you retired, most companies paid a pension and continued your health insurance. So when you hit 65, medicare kicked in and your old employer picked up the supplement health, you had a pension plus social security. That’s pretty good since like in my fathers case, he retired at age 55 with all of the above benefits.

Today that is not the case, most employers are dropping health insurance for retirees due to the high cost. Very few employers provide pensions anymore and now we have 401K that we have to pay a high percentage of the cost with some help from our employers, but we are at risk that the 401K we choose makes money or loses a lot after the financial crisis a year ago. With a pension it was guaranteed just like social security that every month you would receive a check in a certain amount.

Now many people are being forced to work to age 65 or fear if they retire early, could lose their health insurance and the cost they pay to their employer is about 1/2 cost vs a private plan if you are healthy enough to buy.

If you could take out the health insurance out of the equation on retiring or keep working, yes, many might choose to retire early, but that is not going to happen as health insurance just keeps rising and will continue till someone figures out a way to get it under control.

George asks…

What kind of health insurance USPHC offers to the family? I checked on the web and is says at low cost….?

But low cost doesn’t explain a lot. And when you retired from US Public Health Corps do you have all the same privilages like army, air force, navy and marines like retirement and health insurance for spouse?How does it work?

Sarah Fields answers:

I’d suggest calling them. They’d probly give you all the answers you need.

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