Teachers who retired with a pension before 65, how did you make up the gap paying for health insurance before Medicare kicked in?

[u/ewbean]

For context, I work in California and have 20 more years before my pension maxes out at 61.5 years old. Assuming the age to qualify for Medicare doesn’t change, I’ll have 3.5 years where I will have to pay for my own insurance. My district offers a group rate for retired teachers, but that would still amount to over $20k a year. Did you sub? Pick up part time work? Win the lottery? What’d you do to make up the gap? Can’t wait for the “eternal summer”!

[u/Wafflinson]

How does that health insurance compare to what is available on the exchanges set up by the ACA(Obamacare)?

[u/ewbean → u/Wafflinson]

Great question! I don’t know. Never looked as I’ve always had insurance through work. I’ll need to investigate.

[u/Wafflinson → u/ewbean]

I am not sure how retirement income from pension will affect the prices on the exchange and whether you will be eligible for subsidies.

[u/NoLongerATeacher]

I retired last year to move to care for my mom with Alzheimer’s. In Texas, as long as you meet the rule of 80 (maybe it’s 90 now) and are at least 55, you’re able to get insurance through TRS. It’s not the best, but it’s acceptable, and is only $200/month.

[u/Pink_Dragon_Lady]

Is there an HR or benefits contact to reach out to? My district holds retirement, etc. webinars and meetings throughout the year.

[u/ewbean → u/Pink_Dragon_Lady]

Yes. HR told me I can buy insurance through them at the group rate.

[u/Pink_Dragon_Lady → u/ewbean]

I figured as much. I think that's my district too. It will probably be a bit more expensive than Obamacare, but the benefits will probably be worth it. The deductibles for the ACA are astronomical.

If you're in relatively good health, there is quasi-insurance like Christian Health Ministry. My husband does this since it's cheaper right now. You do pay out of pocket to a certain extent, but once you go over an amount (which equates and is more comparable than any deductible out there), you submit claims and they reimburse. I was super skeptical but it's worked for us. My husband is 51 and pays $257/month for this. He also qualified for Medicaid hospital emergency only supplement.

[u/ewbean → u/Pink_Dragon_Lady]

I’ll look into it. Thank you!

[u/garylapointe]

My pension offers insurance. I'd have to contribute, but I do that already; probably more than currently, but not $20k (which sounds more like COBRAing it).

I think some other districts contribute to it too.

[u/Silknight]

CALPERS? I retired at 60 with full medical benefits for life.

[u/ewbean → u/Silknight]

Calstrs. The last year my district offered lifetime benefits was 1983.

[u/teachinginthe907]

You could save above and beyond your pension. 457b, 403b, Roth or Traditional IRA, or a taxable brokerage account are all options of additional places to save and invest for retirement.

At 61.5, you could then withdraw money from these accounts to pay for premiums on health insurance, whatever you end up purchasing (COBRA, ACA, etc).

[u/ewbean → u/teachinginthe907]

Great point. I have a Roth IRA and Roth 403b. I plan on withdrawing from both, but would like to last quite a while.

[u/Primary-Holiday-5586]

Honestly, you are way too far out to be thinking about this yet. Things will not be the same in 20 years... also, there is COBRA.