Cost of Health Insurance after Quitting Your Job
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- Опубліковано 2 сер 2021
- You need to know the cost of health insurance if you are going to retire early because the costs are significant compared to any sort of income you may gather. Watch to get a good idea how the costs change over time, as you age, and when you can expect the costs to level out if at all.
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This is a good video. It shows how outrageous it is for what middle income self-employed people pay for health insurance and health care in general. The more efforts one puts forth to get ahead in life, the more barriers the government puts up to discourage such efforts.
I'm dealing with this right now. Relative and useful video, thanks for posting!
At age 65, people are required to start Medicare unless they are on a qualified group health plan. Basically unless you (or your spouse) are getting health insurance from a medium or large employer, you must start Medicare at 65. Medicare part B has a monthly cost which is the same for most people, but goes up if your income is over about 85K. Medicare part D also has a cost and varies with the plan chosen. Most people on Medicare are in an Advantage plan where a private insurance company manages everything and provides additional coverage. It's hard to do an apples to apples comparison on pre-65 and post-65 as Medicare complicates the calculations and introduces more variables. Also unlike what many believe, Medicare is not free.
I'm 54. I had a total spine fuse at age 18. I have many chronic issues
I have 35 years of work in the system and every year seems 3x as hard as the last. I must work for the insurance so this subject is very important to me. $1000 a month is a game changer for a meager retirement like I will have with my savings.
Thanks for heads up
Im not even at this point of my life yet, but wouldn't mind knowing the insurance cost if i were self employed, thank you
That's pretty scary! Those costs ramp up above my entire current living expenses :O
Rent or health insurance, fun choice, welcome to America
Love the videos man
Off topic. Did you see the latest Sears SYW CC deal? 10% back for utilities bills. And on top of that, 10% for restaurant/gasoline/markets
Nope. I think that is a targeted offer. I have that minus utilities for now.
@@BeatTheBushI hope you get it soon. I took your advice from your vid on SYW CC. It has been really helpful in reducing internet/trash/water/electricity bills. Thank you for doing that video!
I was JUST THINKING ABOUT THIS!!! And you're video just pops up right on time! I am currently planning to quit my 9-to-5 in 1 or 2 years but wanted to start planning ahead. Health insurance is extremely crucial for me at the moment, I'm dealing with a lot of medical stuff. That's one of the biggest factors why I'm still working today. At the same time, I'm trying to focus and grow my side hustle. Once I make enough money to cover my bills and health insurance, then I can happily leave my job. I'm definitely saving this video for future reference. Thank you for sharing!
I would recommend to make a bit more than enough for some margin unless it's very steady income. Also, make sure what you make is consistent for at least 3 months in a row.
@@BeatTheBush Yes, I will make sure it's a steady income that's promising. Thank you for your advice!
@@beetle-juice If you're self-employed, you can write-off your medical insurance.
@@ssoffshore5111 There's a caveat to that. I would have to do more research on that specifically.
Nice haircut!
Thanks!
I love this channel it really helps me think about what choices I need to make in the future. Benefits is the main reason I keep my job. Which makes me think about what my networth should be before quitting
I'd like to retire early in 5-10 years, it sounds like the key might be to limit your income during an early retirement to qualify for Obama-care? I wish you would've added Obama-care to the chart...
Thanks for posting this video!
Those are all ACA plans (Obama-care)
One my friends did this the first couple of years of early retirement, but eventually he no longer qualified. To make this work is difficult as it takes advanced planning, and it's also a moving target. The gov qualification rules can and do change so even the best made plans may not work long term. And as the other person said, this video was only discussing ACA (obamacare) plans available in California.
Paying 1500 per month is INSANE! Or 700 + 700(wife) + 1000(3 kids). How are Americans able to afford it?
Be rich? Or you end up working for an employer all your life just for health insurance.
@@BeatTheBush now I see why Americans support lgbt/blm. They are holding for a job and afraid. No freedom of speech at all
BTB: You might consider doing an update, because your situation paints an expensive picture that need not be.
1.) the threshold for 2021 is more like $51,000/year max income to receive subsidies and the subsidies are SIGNIFICANT especially after the ARP, American Rescue Plan passed by Congress this year.
2.) ALL plans on the ACA (Obamacare) including Covered California exchange includes your annual wellness visit to the doctor with ZERO co-pay. The co-pays you gave are for the other visits during the year.
3.) Very few 16 year old kids (or college age people) will make more than $51,000 per year and their premium on a bronze plan is about $10/month with the subsidies, not $300+. When you checked the costs, did you put in your income or something less?
4.) AGE 65: Remember that at age 65 you go on Medicare (in the USA) and you would not buy insurance on the ACA or in your case Covered CA. Medicare premiums are very INEXPENSIVE and the regular Medicare premiums are about $150/month and deducted from your Social Security check. You can buy Medicare supplement plans for drugs or a supplement plan to cover the 20%. Medicare is for 80% of costs and includes hospitalization.
I think Medicare is actually pretty bad. I mean think of it as Medicaid for seniors. If anything, I would try to pay for private insurance and see if there is any discount.
On 1) My Kaiser premium went from $1000+ to $460 due to ARP. Tax credits will end Dec 2022.
@@wewhoareabouttodiesaluteyo9303 Nah! Medicare is not bad.
@@antdirect I hear ya. Mine went from $964 to $260 to $155 with ARP.
The problem with any of these projections is the government rules and subsidies are a moving target. One may be able to plan for the next couple of years, but costs after that are just a guess. Medicare is a whole other subject and beatthebush shouldn't have even included people over 65 in the chart. It's impossible to do a simple apples to apples comparison on costs pre-65 and post-65. Also Medicare part B is not always $150 a month, if one's income is over about 85K, the price starts going up. Medicare part D varies depending on the plan, and as @batwood mentioned, most people get Medicare Advantage which is managed by a private insurer to give additional coverage at additional cost.
Don't you get Medicare or something at 65? Is that why the line goes flat?
That’s just Medicare part A. Don’t forget Medicare part B and part D!!!! Details and fine prints. Also, look up Medicare supplemental and Medicare Plan G.
@@BeatTheBush Always look poor on paper.
@@rockyzman You are SO right! In this country, high income is punished. You want high net worth, but low income. It takes math, baby!
nice haircut francis
Hey, thanks
Years ago, I could get a catastrophic insurance policy for cheap, and just pay out of pocket. Then Obama-care came, and my insurance went up so much, that it was 4 times of the old premium for a crappy policy. I want the old policy back.
Would you talk about social security for FIRE people as well? Do we need to work for at least 10 years to get ss?
Ss website has a calculator to show you how much you would get depending on your years already worked. For me, after 15 years of my working, if I stopped now and never worked again and took social security as early as possible I would get between $700-800 dollars. If I keep working I get alot more. But you get the idea. It looks you up in the system and see's what you have already done, and then you can decide how many more years you want to work and what you will end up with.
You have to work a minimum of 40 quarters, which would be 10 years. The more years you work and the higher the pay will result in a higher benefit. Depending on your birth year, the earliest you will be able to draw it is age 62. Every year you wait, you get something like 8% more. You should review ssa.gov (for Americans).
Yes. And SS takes your 40 highest earning years to calculate your payout at retirement. If 30 of those years are zero, don't expect much! That's assuming SS is even solvent and still kicking when you do retire!
@@ssoffshore5111 Actually it's usually 35 years. It's best to use the SS website calculator after creating an account. Many of the 3rd party calculators produce incorrect numbers.
This is exceptional
I was looking at covered California yesterday
Great content! Out of curiosity, how come you did not make the lines on the chart the same color as they are for the plan? Confused my brain for a bit ha
@@BeatTheBush No worries! Still love the content. You're my role model! Haha
Super helpful! I'm planning to go full-time UA-cam in a month or two, so this helps give me more context. Thanks!
180k subs, looks like you can do it. Best of luck.
@@RickMartinUA-cam thanks!
Congrats my man! I'm trying to get there as well!
Thank you for the helpful video! Medical insurance is insanely expensive here in the US! I wonder if it’s the most expensive in the world. In UK, people has free health care. In Asia, you can just walk in to see a doctor same day without appointment and pay like 10 USD or less without any insurance. By the way, I recently check the Medicare cost. I was curious because I thought perhaps we will get free healthcare after 65 with Medicare since we pay into social security. I was stunned by it. It’s very complicated and apparently doesn’t cover everything and it really become expensive again with the all supplemental insurance. Very sad. Really hope the system can become better since everyone deserves an affordable and accessible healthcare.
you got to do more than hope.
Which Asia? I think you are misinformed. As bad as it is in US, handing it over to government (aka free healthcare) will destroy the country's future economy. If you have children, that would be the last thing you want to hand over to them. Unless may be your kid has multiple citizenship.
@@splendidsnapshot9915 nah, it's private and still 10 times cheaper. In US you'd pay 12000$/year for family and STILL have to pay some 5000$ deductable. So your kid broke an arm at the playground - your expenses are fn 17000 dollars.
@@walkersmith2791 you forgot that wages are 10x cheaper too plus the quality is not comparable. I've experienced it personally, since I am from Asia. Also, they still treat you if you are low income and have no insurance in US, (gov't and hospital absorb the cost) but Asia? Good luck.
@@splendidsnapshot9915 ok, I've been to Thailand and service was very nice. In Russia hospitals are free in low conditions, but if you pay 80$/day they will give you nice room with AC, WiFi and you'll get a good doctor. Or you can get private insurance costs 200$/year with NO deductables. All things will be covered for up to ~20000 dollars
0 euros in EU
of course, the alternative is to rely on yourself. Also, med expenses are lower in the 3rd world countries but the quality might still be good (Thailand for example)
True. But I specifically went to Chiang Mai to check out the FIRE life there and I'm not sold on living there.
Nice setup feels more direct lol
This is why even if someone could afford paying their bills and retire, they can’t, because insurance cost.
Nice new hairdo! Traveling to Phili or NYC anytime soon?
No plans for now. Delta and maybe Lamda getting big.
How is income determined in retirement? Pension income + 401k + social c security? In regards to Obama care limit. Always useful info here.
Investment income, too?
I do not think you can get Obamacare in retirement. The only options are Medio-care or private.
I realize it probably doesn't make sense right now for you to reduce your income to gain access to ACA subsidies, but having the ACA still greatly reduces your risk of premium increases. If health insurance ever gets too expensive, you can always lower your income below $40k and gain access to large subsidies.
And the current ceiling amount for 2021 is about $51,000/year. It rises each year. And BTB is definitely living on a higher income so he is not qualifying for the subsidies.
@@batwood The current ceiling amount is actually tied to your age. Try entering different ages for yourself for 2022, you'll see that the ceiling grows. For age 40, the subsidy cuts off at $62k. For age 60, the subsidy cuts off at $131k. 😲
Just work forever :0
Is the Bronze considered a high deductible plan where you get the tax savings with a HSA?
You can get that or that with HSA they are differently priced but similar.
unrelated to vid, you gona trade your M3P in since the used market is hot, then buy a MYP and or a new M3P (bc of updates and battery pack)?
@@BeatTheBush you sure? If is 10 to 20k down, of course don't do it. There are cases where used vehicle is same price as new. I mean if you're bored and need new content, this might be good. 😬
It caps out because at 65 years old you are automatically enrolled in Medicare. You can continue with Kaiser as your option though. The gov't just changed the definition of senior to 60 years of age last month. So, it may cap out sooner if Medicare changes it's qualifications too. :)
No one is "automatically" enrolled in Medicare, however one is required after 65 to either enroll in Medicare or be enrolled in a qualified group health plan, which are generally only offered through medium or large employers. If one has a spouse still working at a company that has a qualified group health plan, that may be a less expensive choice than enrolling in Medicare at 65. Everyone's situation is different and it has to be looked at individually to make the best choices, and choices often are one way, meaning you can't change your mind later.
How are you liking working at Amazon?
After age 65 social security health insurance should be covering your Premiums or they should be pretty cheap
Great video. Although u forgot to include that premiums are tax deductible if u are self employed. Very important aspect.
@@BeatTheBush something like that. If you may. It would be nice if u get some time to do a video on what qualifies as self employment. How that all fits together. It’s kind of confusing for a lot of people when they read about it. Including my self. Thanks.😀
That is an awesome share, would you be willing to share it?
What do you mean?
@@BeatTheBush sorry the chart, can you share the link to the file?
I'll move to Canada when I retire. This country doesn't treat the old folks well.
How's Amazon?
I think you did a video on this already. I don't get health insurance through any job so I have to pay almost $400/month. Crying lol this reason, I rent a room instead of renting my own place.
Crazy.
@@P.90.603 I purchased through the Obamacare system. It does ask me income.
For this video I took the time to extract all the actual numbers that was never done before.
I pay about $150 a month for healthcare and about $750 personal risk per year. I am fully covered and cost would not go up if I would quit my job.
The $750 is for small medical expenses and the insurance doesn't kick in until I crossed the $750 barrier. Doctors consultancy and dental check-ups are still covered.
That is possible, if you are young and have no history of health issues. Some health plans have "teaser rates" where it's cheap the first couple of years, then it starts to really increase. I used to on a plan like that. Was great when it was $100 a month, 5 years later it was $400 per month and I never even made a claim during that time.
I moved Hong Kong for work, one time my son had a terrible fall in the playground, totally broke his arm in a horrific way. The ambulance came, my son immediately was sent to a hospital to undergo a big surgery, and he stayed at the hospital for a couple of days. I had no insurance. At the end, I paid about USD$30 for all medical expenses for my son's incident (some people here still decide to buy health insurance because they like to stay in private rooms at private hospitals and choose doctors that they like, but for me these are not big deals enough for me to buy insurance here). Sometimes I think about moving back to the US, but if I don't have a job with good health benefits, the thought of paying so much money for health insurance premiums for my family members is terrifying. The health care cost has been a big problem for people living in the US for so long, but the US government has not made any big progress in solving this problem.
Health insurance in this country is a joke. I know many people who work just because they need a Heath insurance.
Leave america and leave your american citizenship, Go somewhere like Canada where healthcare is free. in Dubai , we have free healthcare, little to no taxes, free education, free water and electricity ( but there is a cap for each home each month ,and everything above that gets charged) so its like 50$ in total , we also have a housing system where the government gives you free land to build and they give you a loan of 300K-600k dollars interest free to build our house , we also don't have any property taxes , you don't have to pay and sort of capital gains or tax, we are much safer than the USA . To be honest if you move out of there your expenses will be much lower. try to get a canadain citizenship or a European one I'm sure they will be a 100 times better.
BTB always answering the questions you never thought you’d eventually ask.
Appreciate it. =D
I worked at my employer for 33 years so I took my employer's retirement insurance and this year I'm paying 433.00 a month. Most of the stuff I've done using it has been free or low cost and when I get to 65 I'll take medicare.
So great you can have such an option.
Medicare isn't free either and may not give you as good of coverage. Compare carefully, as once you drop the employer retirement insurance, you most likely can not go back to it.
Nice cut!
Thanks!
stupid healthcare cost >:(
We all have to work at Starbucks to afford to live lolol
But do not actually drink or eat anything offered to you by Starbucks.
This video makes me realize how lucky I am to be Canadian!
Ya you get serious disease and no availability for months
@@johnnyfive1412 - Are you on crack?
@@TougeTime - Not true. Don’t believe the bullshit you hear from right wing politicians in the US.
@@PrimalCircus I'm Canadian lmao
@@TougeTime - Then you should know better.
Very good video. Very insightful and covers what most people should be looking into eventually.
healthcare spending has been increasing drastically since 1970. it will never end because our system is corrupt.
Capitalism is corrupt? You don't say......
There is no incentive to minimize cost BUT you are getting high quality care if you pay enough.
@@RickMartinUA-cam What’s the alternative then?
Try then to hand it over to government. The entire nation will go down.
@@zloungeact CNN kool aid 🤣. Hint: study the cost of public education and medicaid, may be you'll get smarter.
At age 65 you should be on Medicare and won't need to pay a large premium for health insurance.
I have subsidized insurance through covered CA, and while it’s not the best service, I’m beyond grateful that it barely costs me anything. Im sorry but paying hundreds of dollars a month just for the privilege of having insurance that you barely use is not worth it to me. If I didn’t have covered CA, I’d just take my chances and the tax penalties. I just don’t value health insurance anywhere near what it costs.
@@P.90.603 yes, the bill for a major injury or illness would be high, but knock on wood, I’ve never had one. So every year that I continue to not have one, I’d be wasting thousands of dollars for a service that I don’t think is worth anywhere near what it costs. The peace of mind of knowing I’ll only have to pay $8k instead of whatever the full cost is if I need to go to the hospital, is not worth much to me. Because that’s still a rip off IMO.
Great video and well explained for people want to FIRE
Do like the Amish, and don't get any.
I suppose. I wonder how their life expectancy is without health care? I mean, they probably do some pretty healthy things being Amish too.
@@BeatTheBush it’s 72
The cost of insurance capped out at 64, because once you're 65 medicare start to kick in. The cost of insurance flatten when you're in college attending age, cus a lot of students choose their college sponsor health insurance. A lot of it just competition, if there isn't competition the price will keep going up.
I plan to only semi-retire because of this health insurance crap. I was unemployed a few times and had to pay for my own medical so I knew I cannot retire entirely in my 50s. My company's medical plan deductible is $300.
Barista fire 🔥
@@BeatTheBush Starbucks after amazon videos?
Do what people do with student loans, bank on the fact that the government is going to intervene and make it affordable. lol
You are too young to need insurance.
Accidents and disease happen to everyone
One accident can lead to bankruptcy and losing everything without health insurance. This happened to someone I know, they had an bad accident while on vacation and were in the hospitable for three weeks with no health insurance. They lost everything, their house, all their savings, all their investments. The person was in their late 40's and ended up having to move back in with their elderly mother. It's a personal choice to not have medical insurance, but not a smart one if you have anything to lose. If you live out your car, don't have any money or a house, then maybe you don't care if you go bankrupt, but that is not the situation for most people.
lol 420
haha laughs in UK
@@BeatTheBush its free on any income doctor, ambulance, surgery anything. In some cases you have to pay for dental work if you want it done like teeth whitening or braces as an adult
@@BeatTheBush you have national insurance, which is social security and income tax. everyone gets a tax free Lawrence of 12.5k for income tax. so if you make 20k you only pay 20% on 7.5k and if you make over 45k you pay 45% on anything over that. example 50k = 5k at 45% and 20% on 32.5k
Owned a business 10 years Covid is messing it up, I have 4 children on one income so I work amazon nights for the insurance and stability😩🤷🏽♀️
This is why America really use healthcare pricing to keep people working for their life
Not necessarily, you can always apply for Medicaid, charity care, and/or Obamacare if you fall under the income threshold. Or, you can marry a sugar daddy of some sorts in the healthcare field who'll have you and the family covered under their primary plan.
I wonder what kind of people sit around thinking of ways to keep people busy and working. The very wealthy? Ruling party?
@@BeatTheBush Actually, yes, those "behind the curtain" who pull the strings of the politicians want to keep people busy and working. It is necessary to keep a consumer based economy functioning. Encouraging consumer debt also helps tremendously in keeping people busy and working. If the economy was based on exporting some natural resource that only we have, it could be very different.
I’m determined to move overseas after retirement, before Medicare kicks in. I could save $10,000+ on US healthcare costs and additional living costs if I lived overseas.
The unspoke secret of many expats with the only downside of having to figure out your own pension plan. But if it's even an option for someone to consider, then it would mean they probably have that in order in the form of a portfolio. No American knows the joy of spending 3OO baht (9 bucks) or what ever currency for a consultation. That's what I call health insurance. It's so cheap you have the insurance, that you can pay for it and the medicine without worrying about it ever breaking the bank.
@@zeeh7438 Just make sure that stock portfolio is doling out the $.
@@wewhoareabouttodiesaluteyo9303 Yeah but you don’t even need that much $ to live comfortably in most countries.
Rather that works for any particular person is highly dependent on their interests and where they go. For some it works, for others they just end up back in the US after a couple of years. One has to be prepared for a significant change in lifestyle, many things that one takes for granted in the US are not easily available in some places. For example, take car repairs. We take it for granted, if your car breaks, it's fixed in a day or two assuming you can pay for it. In many places in the world, it can literally take weeks to repair a vehicle due to unavailability of parts which must be shipped in internationally. Enjoy getting "stuff" from Amazon in a couple of days, change days to several weeks in many places. Like going to a mall with lots of stores all open 7 days a week, not going to find that in many places. If one is talking about going to Europe, yes, most of the conveniences we are used to will be there, and medical insurance may be covered, but it's also quite expensive in just about every way.
Americans need health care for the Delta variant. Winter is coming