Healthcare in the Gap

Prior to Medicare at 65, if having no employer retirement healthcare option, one should study what ACA premiums may cost in our Zip code, and if eligible for ACA subsidies if qualifying.

Qualifying for subsidies currently have a MAGI ceiling based on 400X poverty level.

Bigger Pockets Money model

https://biggerpocketsmoney.com/healthcarecosts/

For California and my family of 4, based on our ages:

  • Bronze Monthly Premium of $2041 ($24k/yr)

  • Annual OOP est $8700

  • Total Cost/yr: $33k

  • If MAGI is below $128,000/yr, then $12k subsidies available, with net Cost/yr of $12k

  • Cost will increase $5000 in 4 yrs.

  • Take-away: without subsidies, this may cost ~2X my employer retirement benefit

For California and my family of 4, based on our ages:

  • Silver Monthly Premium of $280 ($33.5k/yr)

  • Annual OOP est $6700

  • Total Cost/yr: $40k

  • If MAGI is below $128,000/yr, then $21k subsidies available, with net Cost/yr of $19.5k

  • Cost will increase $1000 in 4 yrs.

  • Take-away: without subsidies, this may cost ~2X my employer retirement benefit

Michael Wei