#191 | Marketplace insurance in early retirement – how to, costs, and more!

March 6, 2023

Episode Summary:

In this episode, Maggie shares her experience and tips for signing up for medical benefits on the Affordable Care Act Marketplace. We discuss how to sign-up, some of the details of how the program works, and the best tips and tricks that we’ve learned along the way. And we share the specific amount Maggie and Greg are paying for benefits in 2023 on the marketplace.  

Episode Notes:

Maggie’s top learnings from spending a year researching, signing up for, and using ACA marketplace insurance:

  • Plan ahead, this takes time and research. We discuss how you can price out and see the different plans, how the number and types of plans are quite complicated, some tips regarding the application process, and whether or not you need to work with a broker or rep.
  • Understand the levels of plans. There are bronze, silver, gold, and platinum plans, and they are explained here. 
  • Understand how subsidies work, as they can be quite generous if you’re not working or on a low income. We explain how the subsidies work, how you can estimate your AGI (adjusted gross income), what happens if you misestimate your AGI, and how you can proactively manage your AGI.   
  • Understand how cost-sharing reductions work.  The cost-sharing reductions are clutch  and only available on the silver plans.
  • You’re likely going to need to change doctors and maybe even adjust medications. This is OK. A lot of things are going to change for you in early retirement, and in the grand scheme of things, these are doable changes. We recommend consulting with existing doctors and being very detailed oriented about which doctors and medications are covered in which plans.
  • Fight for your rights and ask questions and double-triple-check! If the marketplace says a doctor is covered and the doctor says they aren’t, do more research on both ends.

We wrap up this episode by sharing what Maggie and Greg are paying for 2023 insurance premiums.  

 

Top 3 Takeaways:

  1. Your options for medical insurance are not limited to employer-sponsored plans.  Insurance on the marketplace can be quite affordable if you’re truly retired and/or living on a lower income.
  2. Do your research and plan ahead.  
  3. Learn about and understand the subsidies and cost-sharing reductions. This is what makes marketplace insurance affordable.  

 

Show References:

 

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