What I fear is a very simple Medicare question....

eddieo45

eddieo45

New Member
Hi (fellow) seniors! My second post after my introduction; thanks for having me! I turned 65 in December and dutifully signed up for Medicare Part A/B, but I'm still working, as is my wife, and our primary health insurance is through her employer. She'll turn 63 next week (let's just keep that between us, lol), and she recently started speculating as to when she might be ready to "stop working", i.e. stop collecting salary! She said the end of 2025 seems about right, and initially I was ready to take that ball and run with it. I'll be 67 then, and I think that means I will qualify for my "full" Social Security benefit, but she will be 64 and 7 months; doesn't that mean she won't yet qualify for Medicare?

I work in a milestone-driven industry, so I tend to think primarily about what's at the next juncture. First and foremost I understand I cannot sensibly start collecting SS, or take withdrawals from my tax-deferred retirement accounts until she stops working or we still will be in an onerous tax bracket. But now I'm realizing that if she retires on New Years Eve 2025 she won't have any health insurance until she hits 65 in May '26 and gets Medicare. It only now occurs to me that at age 65 in May '26 she still won't be eligible for her "full" Social Security benefit, as the full retirement age for those born after 1960 is 67.

Not that SS is that big a part of my financial planning, but the five months without health insurance (for her) seems like a dumb move. Thoughts??
 

I asked Gemini ai about your whole post... ( just some things to consider. Be sure to verify any info here. )

Here's some information to help with your wife's health insurance and Social Security:


Health Insurance Options for Your Wife (Turning 64):
  • COBRA Continuation: Her employer's plan might offer COBRA, allowing her to continue the same coverage for a limited time after leaving the job, though it can be expensive. It's worth checking the details and cost with her employer.
  • Individual Marketplace (ACA): Your wife can enroll in an individual health insurance plan through the Affordable Care Act (ACA) marketplace. Subsidies might be available based on your income, making it more affordable. Open enrollment for the marketplace typically occurs in the fall, but there may be special enrollment options if she loses her employer coverage.
  • Medicare Advantage Plans: When your wife turns 65, she can consider Medicare Advantage plans offered by private insurers. These plans often include benefits like dental, vision, and prescription drug coverage that traditional Medicare doesn't.
Social Security Considerations:

  • Full Retirement Age: You're right, the full retirement age for Social Security is 67 for people born after 1960. However, she can still receive benefits starting at age 62, though they will be permanently reduced.
  • Spousal Benefits: If your Social Security benefit is higher than hers, she may be eligible for spousal benefits when she starts receiving Social Security.

Actionable Steps:

  • Contact the Healthcare Marketplace: Look into individual health insurance plan options and potential subsidies.
  • Talk to Her Employer about COBRA: See if COBRA continuation is an option and determine the cost.
  • Schedule an Appointment with Social Security: Get detailed information about your wife's Social Security options, including full retirement benefits and spousal benefits.

Remember: There are options for health insurance coverage before Medicare kicks in, and delaying Social Security can maximize benefits. Talking to the experts at the Social Security Administration and the Healthcare Marketplace will give you a clearer picture of your best course of action.
 
Welcome to the forum Eddieo45. I love your avatar...it brings back memories of playing my 45s. :)

Is there any way you can convince your wife to wait just 5 more months before retiring, explaining to her the very sound rationale for doing that? @Paco Dennis posted about Cobra as one of the options, but Cobra is ridiculously expensive. I heard ACA is too, but I don't know about that. Of course it will be best to research all options on your own.

As far as SS is concerned, I took mine at 62. I had retired one month before my 51st birthday and had a heart condition. Honestly I didn't expect to live much past 62 (I'm now 77). I have never regretted taking mine early because I've been able to invest most of it and according to my calculations, the dividends and capital gains I'm getting will exceed what I'd have gotten if I waited until full retirement age.

Questions: Do you plan to get a Medigap plan? Will you still get health benefits from your employer after you retire?
 

eddieo45 said:
Hi (fellow) seniors! My second post after my introduction; thanks for having me! I turned 65 in December and dutifully signed up for Medicare Part A/B, but I'm still working, as is my wife, and our primary health insurance is through her employer. She'll turn 63 next week (let's just keep that between us, lol), and she recently started speculating as to when she might be ready to "stop working", i.e. stop collecting salary! She said the end of 2025 seems about right, and initially I was ready to take that ball and run with it. I'll be 67 then, and I think that means I will qualify for my "full" Social Security benefit, but she will be 64 and 7 months; doesn't that mean she won't yet qualify for Medicare?

I work in a milestone-driven industry, so I tend to think primarily about what's at the next juncture. First and foremost I understand I cannot sensibly start collecting SS, or take withdrawals from my tax-deferred retirement accounts until she stops working or we still will be in an onerous tax bracket. But now I'm realizing that if she retires on New Years Eve 2025 she won't have any health insurance until she hits 65 in May '26 and gets Medicare. It only now occurs to me that at age 65 in May '26 she still won't be eligible for her "full" Social Security benefit, as the full retirement age for those born after 1960 is 67.

Not that SS is that big a part of my financial planning, but the five months without health insurance (for her) seems like a dumb move. Thoughts??
Click to expand...
I agree. Can she wait until she is 65? OR has your state adopted Obamacare and can she get a plan through that for 5 months?
 
OneEyedDiva said:
Welcome to the forum Eddieo45. I love your avatar...it brings back memories of playing my 45s. :)

Is there any way you can convince your wife to wait just 5 more months before retiring, explaining to her the very sound rationale for doing that? @Paco Dennis posted about Cobra as one of the options, but Cobra is ridiculously expensive. I heard ACA is too, but I don't know about that. Of course it will be best to research all options on your own.

As far as SS is concerned, I took mine at 62. I had retired one month before my 51st birthday and had a heart condition. Honestly I didn't expect to live much past 62 (I'm now 77). I have never regretted taking mine early because I've been able to invest most of it and according to my calculations, the dividends and capital gains I'm getting will exceed what I'd have gotten if I waited until full retirement age.

Questions: Do you plan to get a Medigap plan? Will you still get health benefits from your employer after you retire?
Click to expand...
ACA is based on your income, but as a 2-income household, they might have to pay a lot. But she can get a quote now from an ACA broker. They are free.
 
Your wife can go with Open Market (Obamacare Affordable Care Act) for (maybe) about $300-$600 a month if the Cobra option is too pricey. Paco Dennis covers this well.

If you only have Medicare A & B, you are responsible for 20% of your healthcare - for even an MRI, that can be over a thousand dollars! You should get either a Medigap Policy (which you can get for about $100 a month) or a Medicare Advantage Plan. Medigap allows you to use any doctor that accepts Medicare, Advantage restricts you to networks. So if you go with an Advantage plan, make sure it is a good one. I would recommend going through an agent. I used United Medicare Advisors
 

You must log in or register to reply here.

Back
Top