Retirement rainy day (illness) fund

Donald

Donald

Joined
Mar 21, 2004
Messages
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Near the beach in Delaware
For those already retired, outside of what you need for normal living expenses, who much do you have set aside for unexpected medical costs? I have a good Medicare Advantage Plan but I am sure it does not cover everything that might possibly happen? I am thinking $100K per person?
 
Donald said:
For those already retired, outside of what you need for normal living expenses, who much do you have set aside for unexpected medical costs? I have a good Medicare Advantage Plan but I am sure it does not cover everything that might possibly happen? I am thinking $100K per person?
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If it's not covered by insurance, you can burn through $100k in medical expenses pretty fast. I'm planning to follow Alarmguy's advice and buy the supplement with the lowest possible out of pocket.
 
Leo99 said:
If it's not covered by insurance, you can burn through $100k in medical expenses pretty fast. I'm planning to follow Alarmguy's advice and buy the supplement with the lowest possible out of pocket.
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For Medicare Advantage plans, the federal mandated maximum out-of-pocket limit is $8850/year for 2024. Therefore, it would take a long-term, chronic illness to burn through $100,000. With that said, the Medigap G plan provides the most thorough coverage against catastrophic illness, albeit at a significant monthly premium as opposed to the Medicare Advantage plans.
 
Donald said:
For those already retired, outside of what you need for normal living expenses, who much do you have set aside for unexpected medical costs? I have a good Medicare Advantage Plan but I am sure it does not cover everything that might possibly happen? I am thinking $100K per person?
Click to expand...
None saved, but in its place a monthly insurance outlay.

Got a medigap N insurance plan that is 120 bucks a month for a 67 year old. Everything is covered except Dr. visit copays and E room visit co pays that are wallet change. Then the $240 annual deductible in 2024

Insurance, It's all a roll of the dice. I was thinking I will likely have a "big" hospital stay in the next 4 years so this was my decision. If so - and either way - going with and advantage plan or Medicare + supplement - it's a wash costwise over a 5 year period if you really use it for a major In-Hospital procedure/surgery.

I also wanted the PORTABILITY of original medicare (any state in the U.S. ) and the no network and no PPO HMO nosey pre authorisation for medically necessary procedures

I would think 10g's per person rainly day fund would be WAY more than enough - unless I am missing something. Just don't get sick at the end of the year. LOL. - Ken
 
I have a Type F Medigap plan. Yes, the premiums are higher than an advantage plane but I never get a medical bill- for anything. So there is never any out of pocket. Worht thinking about. And if you travel around the US, the Medigap policies are good anywhere they accept medicare whereas many Advantage plans are not.
 
Costs are going way up for certain plans. Plan F is not available for folks turning 65 this or next year. Only If you turned 65 on or before Jan 2020

Plan G is going way up in cost in many areas. Check with your State dept of Health and Human Services webpage for a cost schedule for medigap plans in your area.

I would recommend insurance Supplement plan N cost wise - if you are not going to a private insurance Advantage PPO.HMO plan
 
Boomer said:
I have a Type F Medigap plan. Yes, the premiums are higher than an advantage plane but I never get a medical bill- for anything. So there is never any out of pocket. Worht thinking about. And if you travel around the US, the Medigap policies are good anywhere they accept medicare whereas many Advantage plans are not.
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I have that one also, but heard last year that F plans are no longer available. Not sure why, unless it was considered a "Cadillac" plan under Obamacare.
I have to cal them Monday though, I just got my first co-pay "request" in over 12 years on this plan. I just started C-pap therapy, all covered by Medicare and my F plan pays the rest.
Nationwide Medical wants an additional $112.98 though.
I don't think that's part of their agreement.
 
I have both Medicare and TriCare for life thru my military retirement, everything is covered as well as a healthy savings and IRA.
 
My Medicare payment is being well supplemented by Humana. SS is only taking $47 out of my SS payment.
 
Nukeman7 said:
For Medicare Advantage plans, the federal mandated maximum out-of-pocket limit is $8850/year for 2024. Therefore, it would take a long-term, chronic illness to burn through $100,000. With that said, the Medigap G plan provides the most thorough coverage against catastrophic illness, albeit at a significant monthly premium as opposed to the Medicare Advantage plans.
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Well said to the point and accurate.
I have an Advantage C and search for low out of pocket maximum. So far that is $4,500 per year.
 
Donald said:
For those already retired, outside of what you need for normal living expenses, who much do you have set aside for unexpected medical costs? I have a good Medicare Advantage Plan but I am sure it does not cover everything that might possibly happen? I am thinking $100K per person?
Click to expand...
I don't have a specific fund set aside.

But say, we have between $500K-$1Meg for rain day stuff.

If somehow we burn through that, then I would think it would be a year or years with lower tax burdens, so hitting one of the multiple IRA would be necessary.

I just don't worry that much. Stay healthy and yes learn your plans. I have Medicare Advantage for now and no gripes, wife might go Medigap/Adv C and see how that goes, then if looks OK I might change after her trial run. Not sure.

I don't mind paying for stuff out of pocket, like the Naturopath and supplements and extra blood glucose strips, lancets. Medicare paid for the spot meter - a better one than I bought on my own, but they only pay for 2 tests per day - when I am food/IR experimenting I burn through supplies. I think I tested 12+ time yesterday! :ROFLMAO: (y) :cool:
 
Malo83 said:
I have both Medicare and TriCare for life thru my military retirement, everything is covered as well as a healthy savings and IRA.
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Thought you lost tricare when you turned 62? The you had to start paying for medicare and switch to that
 
Boomer said:
You can keep type F if you have it but it cannot be purchased by others anymore. Your best choice in Medigap is now Type G.
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The cutoff date for the Medigap F plan was January 1, 2020. If you turned 65 prior to that date, the Plan F coverage is available to you.

However, anyone currently enrolled (or are considering enrollment) in a Plan F should evaluate the cost benefit, if any, over the Plan G. The only difference between a Plan F and Plan G is the former covers the Medicare Plan B deductable cost which is $240 for 2024. Therefore, if your Plan F monthly premium is $20 more than the Plan G monthly premium, it is a wash. If the monthly premium difference is more than $20, you will pay more for the Plan F while essentially receiving the same coverage. Likewise, you would also be paying more for the same coverage with a Plan F if you don't reach the full $240 deductible during the calendar plan year under a Plan G.
 
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I have never had any kind of emergency fund. Lived paycheck to paycheck. Now I live pension/SS to pension/SS.
 
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