Isn’t it the federal government (not the states) that subsidizes ACA plans for those below a certain income?
good question, but not at all clear. California used to subsidize its ACA plans, but also received federal money to help offset some of the premiums. (Just assumed that other Expansion states were similar.) With the Inflation Reduction Act, it appears that the feds may be picking up all of the tab right now.
Attention 401(k) contributors. The 2023 limits have been raised substantially. $22,500 versus $20,500 previously! Folks 50 and over can contribute additional $7,500 (up from $6,500), for a total of $30,000.
8 Likes
This seems fairly easy to use.
I did not need to provide my email address in order to see rates and plan features. It does ask for age and zip code, as the plans use that info in determining rates.
I am not certain of this at all, but I think it was the Feds offering the subsidy as the Premium Tax Credit is reconciled on the Fed tax return.
California definitely offered some sort of subsidy beyond the Fed level, but I do not know how that has changed with recent legislation. CA used to offer a subsidy at much higher income levels than I have seen in NY & CT, but now everyone has subsidies at higher income levels.
THANKS! That was exactly the kind of thing I was looking for, no need to input email and deal with an inbox full of quotes.
The Colorado full-pay costs shows for a variety of plans ranged from $590/month to $727/month, depending on deductible and max out-of-pocket parameters. I did not play around with the income-based subsidy rates because Roth rollovers inflate our retirement income.
Then… I got curious and redid it with a $30k/yr income. Monthly rates varied from $70 to $253, with much lower ranges of deductible and OOP.
Disclaimer: above is just a one data-point quick check, Colorado example
2 Likes
So glad to see discussions of ACA and COBRA on here! The info is very helpful to know and good to see it’s researchable (the link wouldn’t work for me CT1417, but I’ll try on a different computer).
Future healthcare coverage has been a huge factor as I consider whether hub (who’s 2 years younger than me) and/or I could retire before 65 (when Medicare kicks in). I have an .incredible, zero deductible medical plan through my employer - no benefits after retirement but can do COBRA for 18 months.
Since I’ve had a significant health issue in the past, ensuring that we can get excellent healthcare coverage is a deal breaker (don’t want to miss something and end up destroying our hard-earned savings with unexpected health costs).
2 Likes
That link was only for Colorado, but it sounds as though you are saying you could not access it. I found it by searching Colorado ACA plans, or something like that.
AFAIK, each state runs its own platform to access plan pricing.
If you do enroll in COBRA, keep in mind the January 1 deductible & OOP reset. While I realize that your COBRA plan will not have a deductible, the ACA plan will, so you want to evaluate the cost/benefit of paying for COBRA for say six months and then enrolling in ACA on July 1st. (I am just making up dates here, assuming you retire on Jan 1st and COBRA runs through the following June 30th.)
The ACA enrollment decision you make for a partial year may not be the same plan you would choose for a full year. In other words, it may make sense to enroll in a high deductible plan for a full year but not if enrolling for only the last few months of the year. Having said that, if you are coming off a generous employer plan, you will probably have accessed all known care while covered and therefore may need only minimum care for the last few months of that year.
Getting down into the weeds here…but the HDHPs allow use of an HSA, which can be funded to $8750 for family coverage for 55+. This reduces your taxable income by $8750, so it is ‘worth’ more to you when calculating the premium differential among ACA plans.
It is worth looking closely at the premium differentials for the plans. I have found that the annual difference in price between a Bronze & Gold plan is almost the full OOP for the Bronze plan, especially once you add in the tax savings realized by funding the HSA.
Am happy to clarify if any of the above is unclear.
2 Likes
When my husband got laid off (turning it into retirement), we kept COBRA for the first year (as it was April and we had already met deductibles.) We switched to the ACA plan in NJ the start of the following year. That year we got a nice rate, however each of the following years the rates have gone down. Our ACA advisor (free to us - paid for by the state), says the plans are doing so well financially that they have lowered rates.
3 Likes
I imagine one of the tricks to long term research/planning is that so much can change down the road. But ya gotta start somewhere with assumptions 
4 Likes
What others think …
$1.25 million seems a little high for me if SS is excluded given the median household income. Of course, at the individual level, the number will vary widely.
For a lot of people in H/MCOL areas, houses appreciate a lot and adds to the kitty. I have seen grandmas retire to NC from Philly with $800K on a house they paid $125K for. The irony is that they move because they cannot pay taxes on it anymore.
1 Like
Definitely cost of living is a factor. As is desire to travel etc. But much depends on whether you have generous pension(s), becoming less common over time. And of course other factors such as SS, amount of debt, taxation on 401k, etc.
I can never tell if these numbers are meant for a person or a couple. I think $1.25 mill is low for a couple, and in some places low for a person. Mostly because of risk of loss and inflation. If you have 1.25M and the market goes down 30% or more early in your retirement, things aren’t looking so good.
If you have a paid off house you plan to stay in (or you plan to move to lower or similar cost house) and 2 or more pensions within the couple (I know people who have several), then of course that number would be easier to live with.
1 Like
Bring this thread back up to ask a question about a will. My sister wants me to be an executor but I’m very reluctant to it, I will be old when she goes, so my suggestion is to have a member of the younger generation, I mentioned other kids in the family but she refused. I said I might talk to my daughter to be one, if not she has a friend who has a son.
What happens when all the assets are passed by beneficiaries and TOD, but there’s no will. What happens if the real estate still have a mortgage, what are the potential problems. There are no money to be paid outside of IRA and real estate properties.
Who are your sister’s beneficiaries? Can’t one of them take on the responsibility?
Will the Real Estate be passed ToD? What about final arrangements?
Alternatively, you might agree today with the proviso that if you are not up to the task years later, she appoints backups so you resign and next person up.
1 Like
Beneficiaries are the remaining siblings.
Is there a problem with a TOD with remaining siblings and there potentially might be a mortgage on one of the house. Real estate properties will be passed TOD. What arrangements are you referring to?
I’m worrying that she might passed away quickly like my dad did one day on dialysis, no time to pass up to another person.
People said to me it’s very stressful to be an executor, I don’t want this to happen to my daughter.
just confirming, your sister has no children?
fwiw: I was executor of my parent’s stuff during the height of covid, and while it can be a PIA, never found it stressful. I was retired so I had plenty of time. But then everyone’s stress level is different. A way to reduce stress is to hire an estate attorney for advice, but that will require cash out of the estate.
“Final arrangements” as in funeral/burial/service costs. (Who is gonna pay those if everything is PoD/Tod?)
If there is a mortgage on teh house, whoever receives it ToD needs to pay off the loan. If they don’t have the cash, they can refi or sell the house and keep the net proceeds.
1 Like
Correct, never married, and no children.
She just wants to be cremated, cost is negligible.
I’m worrying of a case where the bank will seize the property because she’s dead and no one is paying the mortgage. Can the house be sold to pay for taxes and stuff like other debts, who are responsible for those. Can we get into her house if she’s no longer alive. I do have a key but legalese I might get into trouble over something.
There are 4 parties to the real estate, will there be problem with so many people. I think that’s the headache.