Today I will be ranting, so if you don’t really want to hear it, I will understand if you walk away now. I just need to get this off my chest.
When we retired, we were on Cobra, a costly but good insurance program. We aren’t eligible for Medicare yet so when our Cobra expired, we had to buy health insurance to bridge the gap until we were eligible for Medicare.
We found a policy. It was double what we were paying per month and there is a $13,000 deductible before the insurance kicks in. Obviously, we bought it because we needed something in case of a catastrophic event.
So Medicare is on the horizon. But that’s not straightforward or free like some people think. Part of it that covers hospitalization will be at no cost, but any doctors visits, deductibles and prescriptions are all something you need to buy.
If only it were simple and easy to understand.
Some people buy insurance managed by the Federal Government. Some people buy from an Insurance company that manages the healthcare offered by the government. That means you deal with the insurance company for claims. You might be required to go back to using an approved network of doctors. And that network may only be available in the state you live in.
If you want to cover non-insured costs like deductibles and services that Medicare does not cover you need a gap policy.
There is Part A, Part B, Part C, Part D, and today we received paperwork for Plan F, Plan G, and Plan N. What????????
Guess what? Not all doctors and hospitals even accept Medicare. That’s fun.
Eyes, Ears, and Teeth
Most plans do not cover eye exams, hearing aids or dental. And all those parts of our bodies get worse and in need of attention the older we get!
If you are young and healthy, try to stay that way. Watch your diet and get some exercise. If you haven’t been going to the doctor, go while you can avoid insurance. My insurance would cost 50% less if I was 10 years younger.
Also, SAVE, SAVE, SAVE. Your cost of living does not go down when you retire. The only money you don’t need to spend might be for work clothes and gas to get to and from work. Insurance is definitely more expensive the older you get. If you can retire with no car payment and no mortgage, I would highly recommend you try!
Right now I am fortunate to be as healthy as I am. I have some things I need to be better about and I am working on those things.
Health care is a BIG BIG business. And we are two of the fortunate people.
To enjoy a long, comfortable retirement, save more today.