Cancelling Health Insurance Until Medicare starts

[JohnH89324]

Hello,

I currently have health insurance with my former employer.

I can't afford the premiums.

I'm cancelling my insurance effective 1/1/20 and going without for 10 months until I can start medicare Nov. 1st, 2020.

I'm in perfect health for a 64 year old, everything checked out.

I'll save about 10 grand, some say smart, others say crazy.

Thoughts?

Thanks,

Jack

[GailL1]

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@JohnH89324 wrote:

Hello,

I currently have health insurance with my former employer.

I can't afford the premiums.

I'm cancelling my insurance effective 1/1/20 and going without for 10 months until I can start medicare Nov. 1st, 2020.

I'm in perfect health for a 64 year old, everything checked out.

I'll save about 10 grand, some say smart, others say crazy.

Thoughts?

Thanks,

Jack

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It is (literally) your life.

But if you are gonna live on the edge - why not just go all the way.  Cancel your car insurance too.

10 Grand won't get you far if you experience a health condition or even an accident with bodily injury.

Also you should be willing to give up any credit worthiness that you may have built through the years and be willing to give up any assets which you may have. 

Insurance, all kinds, is all about limiting your risk.  Everybody has risk.

Risk is defined as (Exposure to) the possibility of loss, injury, or other adverse or unwelcome circumstance; a chance or situation involving such a possibility. ... Risk is an uncertain event or condition that, if it occurs, has an effect on at least one [project] objective. 

Are you expecting all of us to pay for your care if something does happen and you end up in the ER where they have to at least stabilize you?

What is your plan if something does occur ?

When it comes to health insurance, it is more than just about you - since insurance spreads the risk, it is also about other people and helping to limit their risk.  Most especially if you are healthy - you help balance out the cost of the sick ones.  So think of it as helping others as well as yourself.

BTW, Medicare is not free either unless you are really poor (but you are not, you have 10 Grand)

Part B premiums will be for most people $ 144.60 in 2020.

Part D premiums average about $ 30

If you want a Medigap plan that might cost you about another $ 100 per month -

If you don't want a Medigap plan that covers the cost that Medicare does not pay then you will have to pay co-insurance, co-pays, deductible etc.  and you will have copays and possibly a deductible on any meds too.

If you pick a Medicare Advantage plan over traditional Medicare then you will still have deductibles, copays, premiums (maybe) and still the Part B Premium too.

Have you looked at ACA insurance plans?  You might get a tax credit subsidy to help you with premium cost depending upon your income.  You only need it for those (10) months before turning 65. 

Healthcare.gov - 2020 Health Coverage is Here - and it ENDS on December 15 

[MaVolta]

There are some knowledgeable folks here on the forum who understand the ins and outs of Medicare, so hopefully, some of them will weigh in. From what I've read, you may have to pay a penalty on Part D drug coverage, or a higher premium in Part C Advantage plans with drug coverage. This is because you will not have creditable drug coverage for more than 60 days before getting enrolled in Medicare. I don't know if there are other pitfalls, so maybe the experts can assist you.

[shamit]

You do not pay a penalty if you enroll in Medicare during your initial enrollment period.  For the OP that would be 3 months before they turn 65 to 3 months after he turns 65. You do not need to have coverage before this perioid.

The penalty for not enrolling in Medicare or a Drup D plan is for people you do not enroll during their initial enrollment period and do not meet the requirements for having equivalent coverage.  My husband and myself (70 & 66) will be starting Part B in February.  We have have had coverage through his employer since turning 65.  His employer had to fill out a form stating we had this coverage. Therefore we will have no penalty.  But if we didn't have that coverage and did not enroll during our initial or special enrollment period we would have to pay the penalty.