[ebaines]

Thinking about (possibly) retiring from the corporate world in the next year, so I started looking into cost of health insurance (too young for Medicare). I find a reasonable PPO plan for the wife and me is about $1200/month. Certainly got to factor that into our retirement calculations. So I start looking into plans that are available here in IL, and find that because of a "pre-existing condition" no one will take us. The pre-existing codition? My wife takes Metformin, which is a drug that is often prescribed for people with diabetes, and insurance companies here won't insure you if you have diabetes. But she doesn't have diabetes - she takes it to assist with weight loss. Doesn't matter - Metformin raises a red flag that causes the insurance companies to think "diabetes" and they deny us.

So then I try applying for insurance by claiming residency in NJ - which is a state that prohibits companies from denying insurance based on pre-existing conditions (although they don't have to pay for medical costs due to that pre-existing condition for the first 12 months - this makes it so you can't join up, get them to cover a pregnancy, and then drop them). What I find is that the cost of insurance is about 15% higher in NJ than IL, I assume largely because of this difference. So if I do decide to retire I guess we'll move to NJ and pay the higher insurance rate (and also higher income taxes, but that's another story). Either that or wait until 2014 when the Obamacare law prohibits denial due to pre-existing conditions nationally. Decisions decisions...

[tomder55]

I take it then that your employer won't let you stay on the existing plan even if you pay their portion of the plan ? Many companies let you bridge the gap to Medicare eligibility age .

[ebaines]

Two years ago my employer eliminated all medical insurance benefits for future retirees who had not already achieved the goal of years of age + service = 80. Since I have worked here only 6 years I didn't qualify. I can take advantage of COBRA for some number of months, but that won't bridge me to Medicare.

Maybe I'm too young to retire, dammit.

[tomder55]

Don't give up yet . Check and see if you are in any professional associations that offer group plans . Or check out some of those Senior organizations like ASA .
Medical Plans

[paraclete]

$1200 a month that is a lot of money, here's a plan for you since you are thinking of moving anyway retire in Australia, you would probably get cover for $250 a month

[ebaines]

$1200 a month that is a lot of money, here's a plan for you since you are thinking of moving anyway retire in Australia, you would probably get cover for $250 a month

Sounds tempting, but it seems I would end up paying the Australian governent more for them to provide my health care than I would pay the insurance company here:

http://www.ato.gov.au/individuals/content.aspx?doc=/content/12333.htm

[paraclete]

Well that depends on your income level, the medicare levy which provides the base health care, if you have to pay it, it is not paid by low income earners, is about 1.5% and there are rules about self funded retirees etc so if you have a million dollar income I guess you would pay more but you don't pay it if you are privately insured. Living off your capital is not regarded as income here, so I think I have blown that argument out of the water

It is hard to make comparisons between countries as there are a lot issues to take into account but if health care is the big issue we definitely have a better system than has been cobbled together in the US. In our system you are either in or out, you know what the defined benefits are, no yes buts...

[CliffARobinson]

California has a high risk pool that accepts people with pre existing conditions with a letter from a Dr or a Quote that is very high or a refusal letter. Individual Quote? $280. Thanks to "Obamacare" - a Republican idea before the Tea Party demanded the grand 'ol party run to the right.

[tomder55]

Cliff yes . There are many in the Republic party that think the role of the party should be "better managers " of the expanding nanny-state .