Dear Savvy Senior,
At age 63, I will be retiring in a few months and need to find some health insurance coverage for my wife and me until Medicare kicks in. Is Obamacare my only option?
-- About to Retire
Dear About,
There are actually several places early (pre-Medicare) retirees can go to find health insurance coverage -- Obamacare isn't the only game in town. Here are your options depending on your income and health care needs.
Government Marketplaces
If your yearly income falls below the 400 percent poverty level, the Obamacare insurance marketplace is probably your best option for getting health coverage because of the federal tax credits they offer, which will reduce the amount you'll have to pay for a policy.
To qualify for the tax credits, your household's modified adjusted gross income for 2013 must have been under $45,960 for an individual, or $62,040 for a couple. If your income will drop below the 400 percent poverty level in 2014 or 2015 because of your retirement, it may still make sense to buy coverage through the Obamacare marketplace, even if you don't qualify for the tax credits based on last year's income.
To help you see how much you can save, see the subsidy calculator on the Kaiser Family Foundation website.
To shop for marketplace plans in your state, visit Healthcare.gov or call their toll-free helpline at 800-318-2596.
Outside the Marketplace
If you aren't eligible for the government subsidy, or you want additional policy options to what Obamacare offers, you can also buy health coverage outside the government marketplaces directly through insurance companies, brokers or agents. This option is not available if you live in Washington D.C. or Vermont.
These policies do not offer the federal tax credits, but they are required to offer the same menu of essential benefits as Obamacare policies do, and they can't deny you coverage or charge extra for pre-existing health conditions. You might even find slightly lower premiums on outside policies, assuming that you don't qualify for the tax credits.
Another possible reason for shopping outside the marketplace is to find a plan that has your preferred doctors and hospitals in its network. Many plans offered in the Obamacare marketplaces provide a very limited number of health care providers.
To shop for these policies, contact insurance companies, brokers or agents and ask them if they offer policies that are not available through the government marketplaces.
To find a local broker or agent that sells insurance plans, check the National Association of Health Underwriters website which has an online directory. But keep in mind that agents won't necessarily show you all available policies, just the ones from insurers they work with.
You can also look for these plans at insurance shopping sites like eHealthInsurance.com or GoHealth.com, which lists plans and providers that may not be listed on Healthcare.gov.
COBRA
If you only need health insurance coverage for a short period of time before becoming Medicare eligible, another option you may want to consider is COBRA. COBRA coverage allows you to remain on your former employer's group health plan for up to 18 months, but not every employer plan is COBRA eligible. Contact your employer benefits administrator to find out if yours is.
In most cases COBRA is expensive, requiring you to pay the full monthly premium yourself. But, if you've already met or nearly met your employer plan's deductible and/or out-of-pocket maximum for the year, and don't want to start over with a new plan; or if you find your employer's health plan to be better or more affordable that the government or off-marketplace options, it makes sense to keep your current coverage under COBRA.
Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior.org. Jim Miller is a contributor to the NBC Today show and author of "The Savvy Senior" book.
Where do you see most RVs? Parked in their owner's driveways for 11 months a year. So instead of rushing out to buy one for $100,000, check out renting it instead. We're told a pretty nice Airstream that sleeps six will set you back $2,000 per week. In general, the rule of thumb has always been to own what appreciates and lease what depreciates. Do you really want to walk past the behemoth in the driveway five times a day knowing it devalues a little more each month with age? And don't forget about the other costs of RV ownership: insurance, maintenance, storage off-site when you tire of it as a lawn decoration.
Our favorite places to shop are thrift stores near retirement communities. Golf clubs and golf carts show up frequently in these shops at a fraction of their original cost. We also comb the classifieds of the retirement community newsletters for gently used cars; you can find some gems with low mileage.
To state the obvious, you can always rent a boat for a day of sailing or a weekend at sea. You also let your boat-owning friends know that you're "thinking" of buying one and ask if they would mind taking you out for the day? Most boat owners love to show off their toys. And you can become the guests they always invite back by going a little overboard with the food and drink you bring. Boat owners we know say the guests they like the most are the ones who stick around long enough after the sail to help clean up and secure the vessel.
Offer your guest room to out-of-town visitors and you'll feel better asking to use theirs. Use a home-swapping service when you visit new places. Trade your plumbing skills with the house-painter's. You sew and your neighbor bakes like a pro; order up a birthday cake and offer to take up a few hems. The one commodity that retirement gives everyone is time. Barter it for the lifestyle you want.
Public libraries rent out not only books and movies, but they also run lots of free programs including lectures. Parks hold concerts in the summer for free. Colleges frequently allow those 55+ to audit classes for free; you won't earn credits toward a degree, but you will learn some new things.
