Saturday, July 23, 2011

For someone retiring before Medicare eligibility, what is a reasonable amount to budget for health insurance?

This seems to be a missing topic in all the online articles about retiring.
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I feel that $900 per month is not a "rational" answer. This really depends on a few things: 1) What state will you be in when you retire? 2) Do you have any medical conditions? 3) What is your risk tolerance? i.e. How much of a deductible can you handle? With the above being said, it is very difficult to just throw a number at you - there are just too many variables. Minimum per person $300 Maximum per person $800 You should also look at getting into a Health Savings Account qualified plan - they keep the premium's reasonable for that age group, plus they give you the ability to open a tax advantaged savings account.
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