I got a notice in the mail yesterday from my health insurance provider. Due to increased health costs they 'have' to increase rates again. They increased them 14% in January and now are increasing another 14%. The new rate is $486/month about $79 more/month. Almost 30% increase in one year.
This is the only health insurance I can get in Colorado due to pre-existing conditions. Its state sponsored, but not cheap. If I were 55, it would be $606/month - $120 more. If I were 60, it would be $706/month - $220 more. It's insane.
I could go with a higher deductible, but that's a guessing game. The likelyhood of having two bad medical years in a row are slim, but possible. Last year was the first bad year in 25 years, I doubt if it will be 25 years until the next one, but the chance of one in the next 15 (pre - Medicare) is pretty high. But will it be this one or not for 5 years. I could go for the lower premiums/higher deductibles, but adding another $1000 deductible from my HSA actually adds a few dollars to the premium and out of pocket is $1000 higher, so that's not an option.
Going to a $5000 deductible lowere the premiums a little over a $1000 a year, but out of pocket if I need the max increases by $4000 a year. So I guess I'll stay where I am and hope that sometime in the next decade, a decent health care system gets implemented.
Before retiring I read that for each decade of early retirement you need to put aside $100,000 for health care costs, now I'm thinking that was a little shy, I'd bet on $150,000 per decade. I have almost 2 decades from when I retired at 47 to eligibility for medicare, which still costs, just not quite as much.
I finished reading my book Darker Than Amber by John D. MacDonald. Mystery - pretty good.
another huge increase in health insurance
May 22nd, 2011 at 07:42 pm
May 22nd, 2011 at 09:19 pm 1306099175
May 22nd, 2011 at 11:16 pm 1306106208
Earlier this year, i thought i was home free as far as further rate increases in health insurance, but no, i think it was last month that i got the notice they were increasing it by $25 a month, to $468. However, with the rate increase, they made some changes in the plan, which now covers more basic preventative office visits. So if i want to have a colonscopy this year, it will be fully paid for. Ditto with gyno visit, no co-pay.
May 23rd, 2011 at 02:14 pm 1306160082
Going through this has been eye opening as far as planning for retirement, etc. Has made us far more realistic about the realities of retirement. I am paying about $900/month more for insurance now than I was 7 years ago. OR, from $100 to $1000/month. Being very conservative, we have been able to absorb the costs, but I am about at my limit. We were lucky we were able to get a HDHP and save the amount of the deductible annually, to do so. That said, I have always been skeptical that it was a lure and that they would raise the deductible, etc. BUT, it was all we could afford. Our old insurance costs over $1000/month - I stopped keeping track because I can't afford it and it is ridiculous.
Of course my dad decided to keep working in mid-50s simply for health insurance coverage. He was since temporarily disabled (major health problems) and laid off. He will pay in the realm of $3000/month for insurance, once COBRA/California programs run out for him. He is about 60 so has a few years to worry about. He can afford it, but it is ridiculous. He's got one more year of COBRA and still hoping for a job, if nothing else to reset COBRA again. IT's 3 years in California.
May 23rd, 2011 at 07:13 pm 1306178003