Phase III - Deja Vu All Over Again

Where are you and where are you going?
Scott 2
Posts: 1483
Joined: Sun Feb 12, 2012 10:34 pm

Re: Phase III - Deja Vu All Over Again

Post by Scott 2 »

18 months for Cobra is required by law, I believe. Your premium is so low though, I wonder if it is correct. Does your employer continue to pay their portion during the 18 months? I think that is highly unusual and would be a great perk. It would explain the number though. Heck, even the retiree premium looks low to me, but I understand that number.

It is likely your employer is working with a better (younger and healthier) risk pool than an ACA plan. If you cannot make the subsidies and cost sharing work, I would fully expect it to be your superior option. Especially with the individual mandate gone, there is a process of anti-selection going on in the ACA risk pool. The healthiest are going to be insured through their employer, or opt for plans like the health share. Pulling them out of the pool drives ACA prices higher, pushing more people off the exchange, etc. This leads to a divergence between the price of employer (group) and individual plans. The golden ticket is membership to an employer plan, at a growing company focused on knowledge work.


I think ACA introduced some protections around emergency room access and out of network billing:

https://www.healthcare.gov/health-care- ... om-access/


What ultimately gives me comfort regarding healthcare, is knowing the population at large will only tolerate so much expense. Kind of like that joke about outrunning a bear, so long as I have greater means than the average american, I'll be okay in whatever system emerges.

IlliniDave
Posts: 2959
Joined: Wed Apr 02, 2014 7:46 pm

Re: Phase III - Deja Vu All Over Again

Post by IlliniDave »

Hey Scott,

I believe the premium is accurate, what I wrote down was within $5 of what they gave me in writing. It also agrees with what they tell current employees about the cost of the plan. As a retiree/COBRA I would pay 100% versus 30% now. I think the biggest difference is that the pool for employees has an average age probably below 40, where for retirees it would be around 60. Otherwise, it's the same plan.

I believe ACA winds up being the place the most expensive people to insure go as a last resort, so there are probably a disproportionate number of high risk participants there where the company retiree plan is probably pretty average risk for the age demographic (55-64). That's more-or-less the highest age demographic there is given medicare starts at 65, and I'd guess on average is higher than ACA in age. The healthiest can get private insurance pretty cheaply I think if they don't have employer/retiree options. Unfortunately with ACA it's a vicious cycle--as the price goes up those who can bail for cheaper options do so, which concentrates the expensive/chronic cases in ACA and drives the premiums up further as the pool shrinks.

I think what employers offer varies widely. I'm just lucky I hung on for going on 34 years (some days it was really hard to stick it out) with a fairly large company that has preserved the spirit of their "traditional" retirement benefits for those of us old enough to have been grandfathered into them.

ACA Bronze in 2020 would have been about $100/mo cheaper than my employer's retiree plan but the difference in out-of-network coverage would justify paying the extra ~$100 to me.

IlliniDave
Posts: 2959
Joined: Wed Apr 02, 2014 7:46 pm

Re: Phase III - Deja Vu All Over Again

Post by IlliniDave »

Q2 2020 Check-in

Pretty good bounce back for invested assets. In total I'm up about $30K for the year, all attributable to contributions on top of a negative return of under 2%.

I'm finally hitting the crossover point in my modified FI Graph (adapted from YMOYL). For 5/6 months in 2020 my baseline spending has been below the monthly equivalent of 3% of invested assets. And being above that one month was due to the big March swoon in the stock market. That drops to 4/6 months if I include shelling out for a new HVAC.

I've been thinking about readiness and categorized it in three domains. One is financial which is pretty straightforward and something I've beaten to death because at one time it was by far the biggest hurdle to get over. A second I'm calling "physical" by which I mean everything involved in getting objects and property ready for relocation. The third is a new one I'm calling "mental/emotional". For quite a long time I dismissed that domain as trivial but I'm learning it's not.

My assessment:

Financial. Green and trending slightly up.

Not much to say on that one that hasn't already been said. My lot is thrown in with the US financial system and barring some sort of permanent collapse/reset I believe I can see my way through most situations.

Physical. Yellow and trending sideways.

After going through a period where I did well shedding stuff, I've become a bit of an accumulator again, so have more things to disposition than I did two years ago. I'm making slight progress updating the house and giving it a spit shine for a the sake of salability. The elephant in the room is getting a serious makeover for the kitchen. I should get more proactive with this one, but I've been avoiding/procrastinating.

My excuse is that one of the prominent local real estate outfits has a couple of programs that I want to assess. I don't remember what they are calling this first one but essentially they come in and do all the fix up they judge the house needs on their nickel, sell the house, and the amount of the fix up plus commission is deducted from the sale price when it's time for me to pocket cash. The other is what they call "instant offer" in which they outright buy the house from you as-is, then presumably flip it. Obviously there will be a price paid for convenience with those.

My household is decidedly lacking in feminine energy, and making choices that boil down to appearance is torture for me. My DIY remodeling capabilities are very limited, and honcho-ing contractors is nearly as unpleasant to me as engineering appearance. So there is an amount of money I'm willing to forgo to avoid hassle. Two-comma privilege, I guess.

I've also been thinking about the actual relocation. What is most appealing to me is to rent one of those Pods, load it up, and send it off to Illinois. Thinking I'd be leaving here in the April-May time frame of next year, that would allow me to just store the Pod for a few months and spend most of the summer up at the hideout to decompress and adjust. Then I could come back in the fall and deal with finding a place to live. The downside is it will leave me in Limbo for a while.

Mental/Emotional. Yellow and trending slightly down.

Despite the trend I'm not too worried about this one. I've probably touched on some of what is behind it. In uncertain times I debate the wisdom of leaving a lot of earnings on the table, additional grown of retirement bene's, etc. I also get second thoughts about dropping myself into states where the Blue vs Red wars are hotter. Even though I can argue I have a plan, which I think will include a pretty good process for keeping activities/interests/hobbies fresh, I still ask myself the "Yeah, but what are you going to do?" question. Routine can create rhythm, and rhythm is historically good for my well being. The first stretch of Phase III also has me moving further away from my younger daughter here in town and the two grandkids. Those are all things I'll have to overcome and I suppose I'd rather face all of that straight on before I go rather than pushing them into a back corner and sorting through them from afar while I should be adopting a forward looking posture.

So, that's where it's all at now. It's very much getting to be time to put up or shut up. I'll leave ramblings on my future house for another installment. I've noticed a guitar can adopt a remarkably similar expression to a dog staring at you because it wants to go for a walk. On a rainy day while off work, there's no reason not to oblige.

IlliniDave
Posts: 2959
Joined: Wed Apr 02, 2014 7:46 pm

Re: Phase III - Deja Vu All Over Again

Post by IlliniDave »

P.S.

Seems my journey is about finished. Hope everyone else finds success in theirs.

classical_Liberal
Posts: 1657
Joined: Sun Mar 20, 2016 6:05 am

Re: Phase III - Deja Vu All Over Again

Post by classical_Liberal »

IlliniDave wrote:
Wed Jul 01, 2020 8:39 am
The third is a new one I'm calling "mental/emotional". For quite a long time I dismissed that domain as trivial but I'm learning it's not.
As soon as I see this acknowledged in a journal, I realize someone is finally serious about ending their OMY(s) syndrome.
IlliniDave wrote:
Thu Jul 02, 2020 3:48 pm
Seems my journey is about finished. Hope everyone else finds success in theirs.
Congrats! But the journey is really just beginning. :o

Frita
Posts: 495
Joined: Thu Mar 15, 2018 8:43 pm

Re: Phase III - Deja Vu All Over Again

Post by Frita »

+1 to c_L’s comment of your journey just beginning

RockyMtnLiving
Posts: 6
Joined: Fri May 08, 2020 8:49 am

Re: Phase III - Deja Vu All Over Again

Post by RockyMtnLiving »

IlliniDave wrote:
Thu Jul 02, 2020 3:48 pm
P.S.

Seems my journey is about finished. Hope everyone else finds success in theirs.
Very happy for you.

Post Reply