Podcasts Business Retirement Starts Today Cheaper Health Insurance Before Medicare? Ep # 194

Cheaper Health Insurance Before Medicare? Ep # 194

Published: May 31, 2021, 8 a.m.

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Are you one of the many that are being held back from early retirement by the exorbitant\\xa0cost of health insurance? If so, you won\'t want to miss this episode. This week\\u2019s retirement headline comes from Carolyn McClanahan at\\xa0AdvisorPerspectives.com\\xa0and it outlines the enhanced health insurance subsidies that stem from the American Rescue Plan (ARP).\\xa0

You\\u2019ll want to stick around for the listener questions segment if you are a fan of retirement podcasts. I have a treat for you all as I crowdsource the answer to John\\u2019s question about asset location. Listen in to hear 4 different answers from voices that you may recognize.

Outline of This Episode

  • [2:12] Could the American Rescue Plan be the answer to your health care before Medicare question?
  • [5:05] What do you need to do to act?
  • [8:49] An asset location question from John
  • [10:01] Peter Lazaroff\\u2019s answer
  • [12:02] Roger Whitney\\u2019s answer
  • [15:45] Taylor Schulte answer
  • [18:44] Chad Smith\\u2019s answer

Could the ARP be the answer to your health care before Medicare question?

The number one issue that holds back potential retirees from retiring early is how to find affordable health care before Medicare. If this sounds like you, then the American Rescue Plan may have the solution that you have been waiting for. Carolyn McClanahan\'s\\xa0article is geared toward financial advisors, but we\\u2019ll take a look at it and see if the ARP could help you solve this common problem.\\xa0

How can the ARP help lower the cost of health insurance?

With the ARP, you may now be eligible for enhanced health insurance subsidies. The Affordable Care Act (ACA) subsidies have been limited to those with a modified adjusted gross income (MAGI) of less than 400% of the poverty level. However, the ARP has lifted these levels with a credit that is based on the cost of the second-cheapest silver plan available in any person\\u2019s given area. Unlike the previous credit under the ACA, it isn\\u2019t suddenly wiped out when someone\\u2019s income jumps over the income limit. Instead, it is phased out gradually.

What do you need to do to qualify?

To qualify, you must purchase your health insurance via\\xa0www.healthcare.gov. The open enrollment period lasts through August 15, and the tax credits apply only for the months a person is using a plan from the ACA. Therefore, the sooner you apply, the more savings you will receive.

Additionally, anyone who has received even one week of unemployment benefits in 2021 and is without access to affordable insurance through a family member will qualify for a silver plan at no premium cost. They also will qualify for cost-sharing subsidies to help lower their deductible.

You can utilize the calculators at\\xa0www.healthcare.gov\\xa0or the\\xa0Kaiser Family Foundation\\xa0to determine your tax credit amount. States that have opted out of the healthcare marketplace may operate differently, so you\\u2019ll want to work with a local health insurance agent to help you navigate the process.\\xa0

The ARP also offers COBRA subsidies

If you lose employer-based coverage due to job loss or reduction in hours, the ARP provides COBRA premium subsidies from April 1 to September 30, 2021. After that, you can continue coverage at full cost. It is important for you to weigh whether you should accept this benefit or\\xa0choose\\xa0an exchange-based plan. Will take advantage of the benefits offered in the ARP to retire early?

Resources & People Mentioned

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