Your health insurance in early retirement

If you are an American who wants to retire earlier than most, then your employer-supplied healthcare insurance might be your biggest worry. How are you going to substitute for it in retirement? 

Here is what I have found on this topic.  


The ACA (the affordable care act)

If ACA still exists when you retire, and you qualify for subsidies, you are in a great condition. Just make sure that there are local doctors under the ACA plan you buy. Great articles on ACA are already available. Here is one from GoCurryCracker. Two others come from RootofGood: here and here. 

The couple from the YouTube channel Our Rich Journey also discusses ACA.

 
Direct primary care

Direct Primary Care (DPC) is an alternative payment model for primary care, it is not an insurance. From the website of Direct Primary Care, here is the most important information about the system. DPC utilizes a flat-fee system that covers comprehensive primary care services. The website mentions in different places $70-$100 a month per member. DPC allows for sufficient time spent between patient and physician. DPC practices usually have extended hours, ready access to urgent care, and “patient panel sizes small enough to support this commitment to service”. As a DPC patient, you can choose your personal physician. Currently, there are over 1,000 DPC practices in 48 states that provide primary care to more than 300,000 patients. However, the DPC practices are unevenly distributed throughout the country. Check their map here. 

According to the news of DPC website, DPC is better than ACA. However, DPC is not an insurance plan and does not cover medical costs outside the primary care practice. Therefore, patients of DPC should have a high deductible or "health share" plan to be an ACA qualified healthcare plan. 

Here is a brief video about DPC that emphasizes the price, convenience and prevention concept. There is also a warning about the medical conditions that would not be covered by DPC or a high deductible or "health share" plan.

 
Healthcare sharing ministries

Another option are the healthcare sharing ministries. These are not insurance plans either. Such organizations take the biblical command to do good and share with others. The members commit to belief in God, freedom, and ethics. The benefit is that the members make affordable monthly contributions online to match the medical needs within their group. One such ministry is Liberty Shares that offers three different programs. Here are the monthly fees: for a single under 30 (and 30 and over):  $249 ($299),  for a couple under 30 (and 30 and over): $349 ($399), and for a family of under age of 30 (and 30 and over):
$479 ($529).
 
Under the Liberty Complete program, after fulfilling the annual "unshared" amount ($1,000 for an individual, $1,750 for a couple, $2,250 for a family), the members can share eligible medical costs up to $1 million per incident.

Other healthshare ministries are the Christian Healthcare Ministries, Medi-Share, Samaritan Ministries, and the Freedom HealthShare. Keep in mind that the monthly share payments are not deductible from the U.S. federal income taxes as medical expenses or charitable deductions.


Medical tourism and international insurance

Of course, medical tourism already exists and will expand in the future. If you are permanently stationed abroad, you may consider international medical insurance. 

From this website comes an example insurance rate for a husband and wife, ages 62 and 60. The plans are offered by IMG Global Medical. Plan 1 covers the couple worldwide excluding the U.S., Canada, China, Hong Kong, Japan, Macau, Singapore, and Taiwan. This plan costs $2,260 per year with a $10,000 deductible. Plan 2 covers the couple worldwide coverage (anywhere, including the U.S). This plan costs $41,546 with a $100 deductible (I could not confirm the cost of the second plan via a quote). Other companies have different deals, for example, CignaGlobal Medical Plan adjusts the price according to where you live. 


 Go to a doctor only when you need (abroad)

This option is not for everyone. But here is the experience of Mr Free at 33 in Chiang Mai, Thailand. 

The affordability of healthcare in Thailand is also mentioned by the adorable couple Our Rich Journey.

Any other ideas on how to release your yoke without the fear of a health collapse in the retirement years?