Retirement Blog

Finance Blogs » Retirement Blog » Health insurance on the way

Health insurance on the way

By Jennie L. Phipps ·
Sunday, September 8, 2013
Posted: 6 am ET

If you're not quite old enough for Medicare and need to buy health insurance on your own, the Affordable Care Act could be an enormous blessing.

The best thing about this law for people living in retirement is that insurers can't refuse to sell you a policy or charge you more for it if you have a "pre-existing condition" -- you were diagnosed with a medical condition or health problem prior to enrolling in a health plan. Insurers also can't up the price because of gender -- older women can't be charged more than older men. Some states have decided to let insurers charge different rates based on age, but other states aren't even allowing insurers to do that.

This isn't "mini-med insurance." To sell insurance through the government's health insurance marketplace, insurers must include the kind of services that older people in particular need: doctor visits, emergency services, hospitalization, prescription drugs, laboratory services, preventive health care and management of chronic diseases such as diabetes and high blood pressure.

The prices aren't cheap, but you can earn quite a bit of money and still get some government help to pay for the insurance. A family of four can earn as much as $94,000 and still be eligible for assistance. If you earn less than 250 percent of the federal poverty level -- $2,394 per month as a single person or $3,231 per month as a couple -- you qualify for significant help, including subsidies to pay such out-of-pocket health care costs as deductibles and copays. The Kaiser Family Foundation offers this example: A single 60-year-old living in Indianapolis will be able to buy a standard "silver" plan without subsidies for $626 a month. That price drops to $193 after subsidies. A more modest "bronze" plan will be $531 a month without a subsidy, but only $97 a month after subsidies.

You can use the foundation's calculator at to figure out whether you'll be eligible for a subsidy and how much it is likely to be.

Open enrollment doesn't start until Oct. 1 and the insurance doesn't take effect until Jan. 1, but you can go to the government's comprehensive website at and sign up in advance, so you'll be ready when the insurance goes up for sale.

Even if you're happy with your current insurance, it doesn't cost anything to shop, and you may be pleasantly surprised. This could prove to be a retirement planning boon for many. Just knowing that it is possible to buy health insurance on your own is liberating. You no longer have to stay tethered to an employer just because you need health insurance.

Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
September 20, 2013 at 11:24 pm

I don't have $97 a month to spare. I am uninsured and have been un- or under-employed for the past several years. Even as low as $97 a month would sink my financial ship.

September 09, 2013 at 10:41 am

Price increases are on the way!

Sumit Patellio
September 09, 2013 at 1:46 am

Many Americans rely on their automobiles to get to work. No automobile means no job, no rent or mortgage money, no food. A single parent, struggling to make ends meet in the suburbs with 100,000 miles on the odometer, would presumably welcome the guaranteed opportunity for low-priced insurance that would take care of every possible repair on her auto until the day that it reaches 200,000 miles or falls apart, whichever comes first.

September 08, 2013 at 1:00 pm

How about if U are on COBRA when Jan. 2014 comes? Must you give up COBRA and go on Barack H. Obamma health care till I reach 65 in Nov. of 2014? Thanks Bob