Need advice on health insurance

[FormerOstrich]

After nearly 20 years at the company I work for I had enough and resigned when they insisted return to office two days a week. My last day is 2/5/2025.

They had recently downsized our offices. They removed the larger cubes with tall walls and placed us in the middle of the floor where it is nearly impossible to work. Long story short, I maybe should have prepared better (sigh) because I didn't check into my health care options. My understanding is COBRA is very expensive...but won't have more info until my exit interview.

I'll be 64 in May. I have an HSA account with what I think is enough to cover premiums until I go on Medicare. I have enough in savings I don't think I'll draw Social Security just yet. Plus, I might pick up some gigs if I get restless.

In the back of my mind I thought I'd just hope on the exchange shop different options and signup. Instead I went through a wizard (step by step verification process). It ended up telling me I probably will qualify for Medicade (presumably because I predicted virtually no income beyond February.

Can anyone give me sort of a run down on how I can approach things better. I am a little confused and afraid I may be going about this all wrong.

Thank you in advance for any help!!!

[thinkingagain]

1. I don't know where your located

But where I live we have a couple that have worked as brokers for the ACA since it started ( they have now branched out to do more insurances)
Any how they are amazing they help navigate through the system and explain the options
So look and see if you have someone like that in your area

I think that on the ACA sight they may have a place to search for them in your area.

I’m not totally sure because it is my daughter that goes to them for help.
I have talked to them over the years for questions and may need them my self this year if I retire early


Only worry if T and GOp get rid of the ACA

[Journeyman]

2. Years ago, disgusted with my job, determined to start my own business . . .

I was on the verge of quitting. But without a sustainable clientele, I knew I'd be screwed.

At a Chinese place for lunch, I got a fortuitous fortune cookie. It said:

"Put up with small annoyances to gain great results."

It gave me the fortitude to stick it out until I'd built my client base enough to confidently moved on.

If the option is available, give a thought to toughening it out. Make it to 65 and you'll qualify for Medicare. And if they fire you before then, you'll get unemployment for a short period, maybe enough to carry you over.

Private insurance for my family and I was a nightmare throughout the years before we had Medicare. I spent thousands of dollars a month, since my wife had many pre-existing conditions and I was erroneously diagnosed with diabetes. Under Medicare, we pay $185 a month each. A pittance compared to what we paid for private insurance, and our care is far better now than before.

Good fortune with whatever you decide to do.

[Skittles]

3. just so you know

Medicaid eligibility is based on both income AND assets.

[Tadams01KC]

4. Cobra

I just went thru this with my wife when she retired at 64. There is a way to estimate cobra payments by looking at what you pay a month for health insurance PLUS what your company pays. That total x 2% admin fee is what you pay for cobra. In my wife’s case that ended up being around $800 a month. Ouch.
ACA is another option but if you make a lot of money it will be expensive also.
Also you can have Medicare start on the first day of your birthday month when you turn 65. So you won’t need Cobra for May.

[HighFired49]

5. Talk to someone in your HR dept.

If your company is large enough and has a Human Resources Dept., someone in that department will be able to tell you about your options. Someone born in May of 1961 probably cannot collect full Medicare and Social Security until age 67. Until then, health insurance is pretty expensive, and your may not be eligible for COBRA..

[Skittles]

7. you can still get Medicare at age 65

only SS has been raised to age 67.....for now

[Frasier Balzov]

6. COBRA is my choice for you in this situation.

(That is, IF your employer is required to offer COBRA continuation to you because they have 20 or more employees.)

Because of the time gap you want to bridge until Medicare.

Because it doesn't require medical underwriting, and will be a smooth continuation of your existing coverage.

Because of the difficulty of disproving your future income if you attempt to enroll in an ACA plan and the ACA robot consults its trusted databases to verify your eligibility for subsidized coverage.

Private insurers have been whipsawed by the back-and-forth ideologies of the changing politics, and right now are effectively prohibited from writing new short term policies exceeding three months in duration.

COBRA should carry you eighteen months, which is more than enough time to get you covered by Medicare.

Finally, my universal advice is to enroll in traditional Medicare Parts A & B with a supplemental policy rather than that Medicare Advantage Part C scheme which is so aggressively marketed.

Yes COBRA is expensive, but you live in a problematic country where the best interests of someone in your situation have not been adequately protected.

The alternative is to go without coverage and to risk catastrophic medical debt.

[UniqueUserName]

8. If you qualify for Medicaid and your state did not expand Medicaid. . .

. . . You may be able to purchase your health insurance on the health insurance Marketplace and get a subsidy that will basically deliver a silver plan for free.

If you make at least 100 percent of the federal poverty level (currently about 15,100) you qualify for a subsidy. You can use whatever method possible to get up to 100% of the federal poverty level. Let's say you were at $12,000 in earned income, you are allowed to take out 3,100 out of your 401k to make up the difference to qualify for a subsidy. You will, in many circumstances, get that additional 10% penalty for early withdrawal from your 401k. But that will qualify as ordinary income to get you over the $15,000 Mark to qualify for a subsidy.

Hope that helps!

[FormerOstrich]

9. Thank you very much for all your comments

I am in Arizona!

Thank you, all!