How can I get Healthcare as an investor?

Question

I’m wondering how people get healthcare after they quit their jobs and start investing. I know there is individual plans but they are very expensive. It’s usually best to get healthcare through employer. Does anyone have any suggestions, stories, or recommendations?

Thanks

Charles Carillo · Answer

Chandler,

This is a growing concern for all entrepreneurs over the past 10 years. Depending on your age and health, I would get a higher deductible plan and open a HSA to cover medical expenses down the road. There are a number of websites you can find off Google to search for plans. Make sure it is a Kayak type website, you do not want a website where they want your information and then 20 people call you. Also, be prepared for your premiums to increase 10%-15% a year.

Account Closed · Answer

I had a high-deductible health care plan before I retired.  The premium for a HDHC plan is less than a regular health care plan, but the higher deductible means higher out-of-pocket payments.  I went through an agent for the insurance company to get this plan (first in California and then in Florida).  Google will help you find one.

For healthy folks, the real benefit of a HDHC plan is the HSA.  I've let my HSA balance grow instead of using it to pay for health care expenses.  Many banks now offer HSAs, which pay a low savings-account rate of interest.  A few HSAs, such as the one I have, allow investments in a list of mutual funds.  Still fewer HSAs allow investments in stocks and ETFs.  But an HSA can also be rolled over to a self-directed HSA with a custodian qualified to offer self-directed IRAs.  People who want to invest directly in real estate through a retirement account can do so with a SD-IRA or SD-HSA (or both).

To qualify for an HSA, people need to satisfy two requirements:  have an HDHC plan and not be on Medicare (which for most people starts at age 65).  Being employed is not a factor.  Before I retired, I used my HDHC plan as catastrophic insurance against a major illness.  I now use my HSA as self-insurance for long-term care should I need it (most of us will at some point in our lives).  Some people recommend a LTC insurance plan, but many of these plans have gone out of business because medical costs increased too much and the people covered by those plans have nothing to show for their premium payments.  With an HSA, it's my plan and if I need the long-term care, I have the money to help pay for it.  Otherwise, my heirs will be very happy if I don't end up needing the coverage.

I will look for a place compatible with "unassisted living."  For example, instead of twisting door knobs, which some seniors have difficulty doing, unassisted-living doors have lever latches seniors have to press down to open.  Another such feature is walk-in showers (and wheelchair-compatible showers) instead of step-in showers as part of a bath tub.  Landlords who want to cater to a graying tenant base might want to keep these ideas in mind if they want to make their rental units senior friendly.

The cost of any health care plan is high and premiums increase each year much faster than the rate of inflation.  In the 2000s, my annual premium increases were above 20%.  In the 2010s, my annual premium increases were in the sub-10% range.  My Medicare premiums are usually at the low end of the range, but one year, they were at the high end of the range.  My highest Medicare premium was still less (slightly less) than my final HDHC plan premium.