Now that my sister’s only child is graduating college and has a job, my sister is thinking about retirement. Basically, at this point, she’s only working for the health insurance (although her $100K/yr salary doesn’t hurt) and could afford to retire. Her health history isn’t wonderful (2 cancers in one year - she’s a cellular overachiever) and insurance is a must. How and where does one get private health insurance, and how spendy is it?
StG
I am self employed, a cancer survivor with a hospitalization for bleeding ulcers, and the last quote I received for decent insurance was $1400 per month.
Really hard to say without knowing what state she’s in. I would guess a lot of insurance companies will simply not cover her because of the cancer. Some states have deals where they have one or two insurance companies that will take anyone. And everything is going to change in a year when the health care reform stuff really kicks in.
If she hasn’t been cancer free for a decent amount of time, the answer might be that private insurance is unavailable at any price right now. Fortunately this changes once Obamacare fully takes effect in 2014 and you can’t exclude because of pre-existing conditions. She could always retire now, take cobra, and get in on the initial insurance exchanges for year 2014.
If she is retiring, she may be eligible for insurance as a retiree from her company. Depending on the company and how long she has worked there, she might even be eligible to have them pay for all or part of it. Even if they won’t pay for any of it, I don’t think they can turn her down. However if they don’t pay for any of it, the cobra pool is likely to be cheaper than the retiree pool, so she should do that for as long as she can.
the pcip plan stopped taking applicants. but many states have high risk plans too.
moving overseas is a drastic option,. but one that lower income Americans take. adecent plan that covers pre existing conditions only costs $200 a month in South America.
In 2014 obamacare is supposed to eliminate pre existing conditions, but there is no telling what will happen politically. she can use cobra as a bridge to 2014
young people may opt to pay the fine over buying overpriced insurance so that means they can’t subsidize the older people which means rates go up, just like is happening now.
How old is your sister now?
My sister is 55. Her husband is a military retiree who is insured through the VA, but she’s not eligible for that. She has lived abroad and had at one time thought about retiring in Turkey (she’s fluent in Turkish), but I don’t think that is still the plan. If she has to work another year or two, that wouldn’t be a problem, I think, if she had a light at the end of the tunnel. She’s just frustrated and burned out. However, since the daughter is graduating this Spring, she’s planning a trip to Europe and/or Turkey as a graduation present. A vacation would do her good. Like too many executives, she rarely uses all her vacation time, and takes her laptop with her when she does go away.
ethelbert - I don’t think there’s any law that requires companies to provide insurance to their retirees. Her boss recently retired to start his dream proprietorship and is living on COBRA right now. I’d guess her company doesn’t provide it.
StG
If it were me, I’d keep working for another year or two and see what shakes out with the new health care stuff. Theoretically, that would solve her problem. IRL, who knows what will happen.
Yeah, tell her to take several good vacations. I’m sure she’s got the time saved up.
She will probably qualify for pre-existing condition insurance. She will have to go for 6 months without insurance to get it, though. www.pcip.plan.com
Pre existing condition insurance stopped taking new applicants for budgetary reasons. Even if it were open, quitting her job immediately and going without insurance for 6 months, finally qualifying in august 2013, seems a bad plan vs just sticking with the job to January 1,2014 or taking cobra for the interim.