$250,000 Teamcare Plan Benefit Annual Limit?

ImaSoulMan

New Member
Hello all.

First time poster, long time listener. I am very much considering retiring after almost 38 part time years. I am eligible for the retirement healthcare benefit since I have met all the requirements. After further review it seems as though the $250,000 annual limit is a major sticking point! One major health issue could wipe that out pretty quickly. I am 56 years old.

How have early retirees (before 65) dealt with this issue?

Thanks for your time, ImaSoulMan
 

Red Headed Stranger

Well-Known Member
I'm not really well-versed on the subject, but I'll give you my two-cents for what it is worth. The $250,000 limit would be what they pay out for benefits. Obviously, the contracted rate for doctor's visits, surgeries, etc. is well below the actual amount billed (example: recent lab work where we used Quest, lab charges billed were $314.58, plan paid $26.04, we owed provider zero.) Yes, it is a roll of the dice, but you should be able to switch to a marketplace plan (worst-case scenario) if you end up getting close to maxing out the $250,000 limit. You will need to monitor your medical expenses closely though. Marketplace enrollment is open every November for the upcoming year. I think if your coverage is ending (due to maxing out benefits), that might qualify for a "special-enrollment period" due to medical coverage ending. I retired at 55 years old from an office job, but because of outrageous health care premium costs, ended up going back to work (part-time UPS/self-employed job as well).
 

ImaSoulMan

New Member
Thanks red headed stranger! That was at least a nickels worth of advice.🙂

I am very concerned about that catastrophic event that can damage me financially. The restriction of $250,000 is just not going to cut it and I will probably just shop the ACA market place. From what I am researching and learning is this plan with its yearly limits is very primitive since ACA has been established. I never felt the need to look into ACA since I felt that the retiree plan would suffice. Now that I'm getting closer to retirement I am realizing that it's a risky proposition.

I will mull over your proposition of switching coverage if I saw a problem arising. Sounds good on paper but could be tricky to implement but it was an idea that I never thought of.

I'm beginning to accept the fact that the purpose of insurance is to keep you from getting wiped out if a catastrophe happens and this retirement plan is to risky for a early retiree like me.

Thanks again.
 

burrheadd

KING Of GIFS
Hello all.

First time poster, long time listener. I am very much considering retiring after almost 38 part time years. I am eligible for the retirement healthcare benefit since I have met all the requirements. After further review it seems as though the $250,000 annual limit is a major sticking point! One major health issue could wipe that out pretty quickly. I am 56 years old.

How have early retirees (before 65) dealt with this issue?

Thanks for your time, ImaSoulMan
ECEB11DC-ADE2-45EE-BA7F-A964A00FA1ED.gif
 

DELACROIX

In the Spirit of Honore' Daumier
Hello all.

First time poster, long time listener. I am very much considering retiring after almost 38 part time years. I am eligible for the retirement healthcare benefit since I have met all the requirements. After further review it seems as though the $250,000 annual limit is a major sticking point! One major health issue could wipe that out pretty quickly. I am 56 years old.

How have early retirees (before 65) dealt with this issue?

Thanks for your time, ImaSoulMan

It depends on your area, 38 part time years as a part timer under the Central and Southern supplement automatically stops at 35 years. Those part timers as long as they are still active in the West continue to accrue pension credits (no limits) and can start collecting their pensions at age 65 along with their Social Security benefits and still work.

Once you turn age 65 in 9 more years that (early) retirement Health and Welfare under Team Care is discontinued and you have to apply for Medicare. If you and your dependents (Spouse) have major medical problems you can apply for Medicare coverage before you retire. You do have to use one for a primary only, there is no supplement coverage with either one in my area (Central).

Major surgery or a prolong health crisis will hammer you big time with the rising costs of medical coverage, you can expect to pay way over 250,000 for one major surgery or a prolong stay in a hospital.

I would wait till this coming contract and see if the O'Brien team can improve your retirement medical coverage or increase your pension benefits. Have to do your research and always be prepared before you take the jump on an early retirement, waiting one more year would be the smart choice.
 

BrownFlush

Well-Known Member
Hello all.

First time poster, long time listener. I am very much considering retiring after almost 38 part time years. I am eligible for the retirement healthcare benefit since I have met all the requirements. After further review it seems as though the $250,000 annual limit is a major sticking point! One major health issue could wipe that out pretty quickly. I am 56 years old.

How have early retirees (before 65) dealt with this issue?

Thanks for your time, ImaSoulMan
Try 100K limit.
I paid major (tens of thousands of dollars)of hospital bills. Went over the limit 6-8 (have to look)different times in the 13 years before Medicare.
It was not pleasant.
 

BrownFlush

Well-Known Member
Details of plans differ. Retiree plans have lifetime caps too.
250K would have been a gift from heaven.
My secondary for Medicare from the local is the same. 100K a year.
It would have to be super duper hospital time (probably be dead) if you capped out that much after A&B Medicare paid.
My wife and I both combined on the first year, the secondary paid $2,200. ($5,300 a year in premiums for the secondary)
 
250K would have been a gift from heaven.
My secondary for Medicare from the local is the same. 100K a year.
It would have to be super duper hospital time (probably be dead) if you capped out that much after A&B Medicare paid.
My wife and I both combined on the first year, the secondary paid $2,200. ($5,300 a year in premiums for the secondary)
Good thing you have a 401K plan
 

Red Headed Stranger

Well-Known Member
Thanks red headed stranger! That was at least a nickels worth of advice.🙂

I am very concerned about that catastrophic event that can damage me financially. The restriction of $250,000 is just not going to cut it and I will probably just shop the ACA market place. From what I am researching and learning is this plan with its yearly limits is very primitive since ACA has been established. I never felt the need to look into ACA since I felt that the retiree plan would suffice. Now that I'm getting closer to retirement I am realizing that it's a risky proposition.

I will mull over your proposition of switching coverage if I saw a problem arising. Sounds good on paper but could be tricky to implement but it was an idea that I never thought of.

I'm beginning to accept the fact that the purpose of insurance is to keep you from getting wiped out if a catastrophe happens and this retirement plan is to risky for a early retiree like me.

Thanks again.
Thanks for thinking it was worth at least a nickel, I failed to take into consideration inflation....ha...ha...

I was in a similar situation. Healthy, but didn't want to wipe out everything we've worked for in the event of a major illness. Unfortunately (or fortunately!), we have assets and between my spouse's pension and my income, didn't qualify for a subsidy in the marketplace, we were paying almost $2,000 per month in healthcare premiums (mine marketplace/spouse's retiree self-pay coverage) for crap coverage. Nothing like paying almost $24,000 per year + $6,900 deductible on one plan +1,000 deductible on another plan + maximum OOP of $5,000 on retiree plan). Once you begin to factor in out-of-pocket amounts for prescriptions and routine doctor visits, it begins to eat through your savings pretty quickly.

Best of luck to you in making your decision. Retirement is the best job ever as long as the wheels don't fall off!
 
Last edited:

Johney

Well-Known Member
Good thing you were still working and you can contribute to it....
Sure why not throw more of my hard earned money away. I'd like to get it all out and bury it in the back yard. Besides if I was still working I'd probably stop contributing you're probably losing $5 on every $10 you put in, why bother.
 
Thanks for thinking it was worth at least a nickel, I failed to take into consideration inflation....ha...ha...

I was in a similar situation. Healthy, but didn't want to wipe out everything we've worked for in the event of a major illness. Unfortunately (or fortunately!), we have assets and between my spouse's pension and my income, didn't qualify for a subsidy in the marketplace, we were paying almost $2,000 per month in healthcare premiums (mine marketplace/spouse's retiree self-pay coverage) for crap coverage. Nothing like paying almost $24,000 per year + $6,900 deductible on one plan +1,000 deductible on another plan + maximum OOP of $5,000 on retiree plan). Once you begin to factor in out-of-pocket amounts for prescriptions and routine doctor visits, it begins to eat through your savings pretty quickly.

Best of luck to you in making your decision. Retirement is the best job ever as long as the wheels don't fall off!
Look how much higher the market is before the crash of 2009
It's five times higher now than it was in 2009
 

clean hairy

Well-Known Member
It depends on your area, 38 part time years as a part timer under the Central and Southern supplement automatically stops at 35 years. Those part timers as long as they are still active in the West continue to accrue pension credits (no limits) and can start collecting their pensions at age 65 along with their Social Security benefits and still work.

Once you turn age 65 in 9 more years that (early) retirement Health and Welfare under Team Care is discontinued and you have to apply for Medicare. If you and your dependents (Spouse) have major medical problems you can apply for Medicare coverage before you retire. You do have to use one for a primary only, there is no supplement coverage with either one in my area (Central).

Major surgery or a prolong health crisis will hammer you big time with the rising costs of medical coverage, you can expect to pay way over 250,000 for one major surgery or a prolong stay in a hospital.

I would wait till this coming contract and see if the O'Brien team can improve your retirement medical coverage or increase your pension benefits. Have to do your research and always be prepared before you take the jump on an early retirement, waiting one more year would be the smart choice.
Is it the same in the southern that a p/t can collect pension at age 65 while still working?
 
Top