Author Topic: Healthcare cost family of 3 - Prepping FIRE  (Read 12320 times)

Kalliste

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Healthcare cost family of 3 - Prepping FIRE
« on: September 10, 2018, 08:51:47 AM »
Hey Guys, i am trying to assess whether i can FIRE. It seems my passive income (real estate hard loan, dividends, multifamily passive income) could  supports my expenses but with 1,000$/month budgeted for healthcare ...This would be for a family of 3 including a 5 yo son. Is this reasonable? I calculated i could get 450$ subsidy from Obamacare on a 80K$/month income but wonder the quality of the insurance under Obamacare...We are healthy couple thus far in early forties...This is the main issues scaring me to take the leap :) any guidance welcome. I am used to corp life and good insurance coverage so a bit unsure on the unknowns here with names such as Molina Marketplace...I am in TX.

wildfox

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Re: Healthcare cost family of 3 - Prepping FIRE
« Reply #1 on: September 11, 2018, 06:13:28 AM »
I am not sure I would count on the subsidy given there is a lot of stuff being done by the current government to block or remove it.

We pay $800 a month with dental and eye and health so that sounds pretty close. That is for a family of 3 with a 2-year-old. It has a big deductible and we qualify for an HSA. 

Kalliste

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Re: Healthcare cost family of 3 - Prepping FIRE
« Reply #2 on: September 11, 2018, 07:05:44 AM »
Thanks Wildfox. How do you go about shopping for best health insurance coverage? are you going on healthcare.gov or somewhere else to shop around?

Orphan

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Re: Healthcare cost family of 3 - Prepping FIRE
« Reply #3 on: September 11, 2018, 08:13:44 AM »
Are you saying you make 80K a year ?

I think you may have some difficulty getting any subsidy from the ACA...

Sam

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Re: Healthcare cost family of 3 - Prepping FIRE
« Reply #4 on: September 11, 2018, 08:40:55 AM »
Throwing my two cents in here before I forget:   We pay about $1650 a month for a platinum plan for a family of three. We are all healthy.

 If we go for gold plan, I think the cost is closer to around $1200 a month. We just decided to go with the best and forget about it.

$1650 a month is a lot of damn money. It is kind of crazy frankly. But it is also a business expense. So if you set up your business and retirement because your freelancing or doing something else, you can basically get a discount equal to your effective tax rate.
Regards,

Sam

SouthWestIron

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Re: Healthcare cost family of 3 - Prepping FIRE
« Reply #5 on: September 13, 2018, 03:07:46 PM »
If your relatively good health I'd look into a HSA with a HDHP. Amazing the things that can be done with it. Look into growing your HSA funds by investing them.

jekamom

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Re: Healthcare cost family of 3 - Prepping FIRE
« Reply #6 on: September 13, 2018, 07:49:08 PM »
Go with the biggest player in your state.  they have the best negotiating power with the doctors and hospitals.  Even with a HDHP, you want the negotiating power.  And I love HDHP's and being able  to write off that famiy contribution.  Dot your i's and cross your t's.
I also do a 3 column analysis of :  what it costs with  just checkups, what it costs with mild expenses (maybe one broken arm) and what it would cost with a catastrophe.  Pick your risk level.

Orphan

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Re: Healthcare cost family of 3 - Prepping FIRE
« Reply #7 on: September 16, 2018, 05:48:43 AM »
Kalliste,
I forgot to mention there is a health care company called medi-share I believe. Their premiums are much cheaper and it is faith based healthcare. Some say it is just fine based on their needs..

TravelGirl

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Re: Healthcare cost family of 3 - Prepping FIRE
« Reply #8 on: October 05, 2018, 05:03:28 AM »
Here's a good article with some additional suggestions:  https://www.kiplinger.com/article/insurance/T027-C000-S002-get-the-best-individual-health-policy-in-2019.html

I still haven't decided what I'm going to do next year.

Sam

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Re: Healthcare cost family of 3 - Prepping FIRE
« Reply #9 on: October 05, 2018, 07:43:54 AM »
BTW, guess my $1,760/month in premiums for a family of 3 isn't that egregious.

From a CNN Business article this week:

Employers and workers together are spending close to $20,000 for family health insurance coverage in 2018, according to a new Kaiser Family Foundation report.

Although premiums have increased fairly modestly in recent years, the growth has far outpaced workers' raises over time. The average family premium has increased 55% since 2008, twice as fast as workers' wages and three times as fast as inflation, Kaiser's Employer Health Benefits Survey found.

Companies pick up most of the tab, shelling out $14,100 a year, on average. Still, workers have to pay an average of $5,550, up 65% from a decade ago.

For single coverage, total premiums have reached $6,900, on average, up 47% from 2008. Workers contribute roughly $1,200 a year.

Deductibles also continue to burn a deeper hole in workers' pockets. The average deductible now stands at $1,350, up 212% since 2008. That's eight times faster than wage growth.

Also, more workers are subject to deductibles -- some 85% in 2018, compared to 59% a decade ago. A quarter of all workers face deductibles of at least $2,000, up from 15% five years ago.
Regards,

Sam

toocold

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Re: Healthcare cost family of 3 - Prepping FIRE
« Reply #10 on: November 11, 2018, 05:50:49 AM »
Quote
Throwing my two cents in here before I forget:   We pay about $1650 a month for a platinum plan for a family of three. We are all healthy.

Sam - Out of curiosity, why choose the platinum plan when healthy?  In general, platinum is meant for higher utilizers and bronze is meant for lower utilizers.

jekamom

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Re: Alternative Healthcare Plans
« Reply #11 on: December 09, 2018, 02:40:28 PM »
Anyone have any experience with Alternative Health Plans, specifically Health Care Sharing Plans (or ministries)?  Loved ones looking at Aleria (trinity healthshare).  Experiences?  Where can I find financial documents on the strength of the financials?  Currently they are gifted an individual Kaiser HDHP for the two of them, which protects against the risk having to pay full price for a serious illness or accident, but doesn't help with well care or routine stuff like an urgent care visit.   Marketplace looks like a 35% subsidy but seriously concerned the subsidies will be cut or taken away in the future nationwide (and the same plan w no subsidy is more expensive through the marketplace!)  They have no serious long term health issues except some depression. (mental health usually excluded) They have few assets.  A pregnancy does not look like a possibility.  Who has dealt with this?  Neither one is currently eligible through employer, but one may be at some point in 2019.

Sam

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Re: Healthcare cost family of 3 - Prepping FIRE
« Reply #12 on: December 09, 2018, 09:30:36 PM »
Quote
Throwing my two cents in here before I forget:   We pay about $1650 a month for a platinum plan for a family of three. We are all healthy.

Sam - Out of curiosity, why choose the platinum plan when healthy?  In general, platinum is meant for higher utilizers and bronze is meant for lower utilizers.

 I just didn’t want to mess around with a baby on the way. The difference with the silver plan and a platinum plan was maybe $200 or so a month, So it was still very expensive. At this stage in my life, I want maximum convenience.
Regards,

Sam

PandaAtlanta

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Re: Healthcare cost family of 3 - Prepping FIRE
« Reply #13 on: December 11, 2018, 07:13:56 PM »
Any of you have any experience with Medishare? Thinking about going this route for my family insurance in 2019.
« Last Edit: December 12, 2018, 07:22:33 AM by PandaAtlanta »