Health Insurance: Here’s a Glimpse of What Health Insurance Costs

So many misconceptions out there about what ๐Ÿ‘ฉโ€โš•๏ธ โš• REAL LIFE โš• ๐Ÿ‘จโ€โš•๏ธ health insurance costs. The good news? It IS available. The bad news? The cost depends on your age and your personal/employment situation. Here’s the ๐Ÿ’Š REAL LIFE ๐Ÿฅ costs I’ve been paying over the past few years.

$1,008/month ($12,096/year)
High quality, high deductible health insurance for me (age 50+) through small group medical plan set up to cover my own independent business and employees. Costs depend on each employee’s age.

$155/month ($1,860/year)
My firm was acquired by a larger company, and I became their employee. They are subsidizing the cost of medical insurance as an employee benefit. Very similar medical insurance to what I had before, but now they are picking up most of the cost.

$705/month ($8,460/year)
Same insurance as above, but now I am paying the full cost through COBRA, which is available to me for up to 18 months after leaving the employer. No more employer subsidies. I keep the coverage until I’m eligible for Medicare.

$617/month ($7,404/year)
Medicare coverage is great, but it’s definitely not free! This is what I’m paying for Medicare + supplemental coverage + Rx. Right now I’m paying extra under IRMAA ๐Ÿ˜’, which means they’re tacking on a surcharge because of higher earnings two years ago. That should drop off with time, but the key take-away is that Medicare is not free. It will undoubtedly cost more than what you’ve been paying for your “subsidized” workplace insurance but less than what you might have paid for individual or small group coverage. Budget accordingly.

Bottom line:
Whatever your circumstances, access to good medical care and insurance coverage is essential for your financial, mental, and physical health. Thanks to the ACA and other provisions, insurance coverage IS now available to you, even if you can’t get it through work. Don’t go without, but be prepared for a crazy quilt of costs and coverage options! โ–

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