Q: I’m in my mid-50’s, have had good jobs all of my career and consistently put money away. Financially, I could retire early, if modestly. However, I’ve stayed in the workforce because of the insurance I get through work. The health insurance prices I’ve been quoted if I were to buy on my own would eat up over a third of my retirement budget.
I’m not a big fan of Obamacare. But now that it looks like it’s here to stay, I’m curious about the “exchanges” taking effect in 2014. Can they realistically offer affordable premiums?
A: I know of many people like you who’ve delayed retirement, delayed starting a new business, or haven’t pursued a dream occupation, because they feel tied to their current job’s health insurance. It’s a shame that so much talent, potential innovation and volunteerism are tied-up because our health insurance is attached to our jobs. The “exchanges” are supposed to be a market place where we as consumers, (employees or not), can shop for health insurance like we do for car insurance or anything else. I’ve heard it described potentially as an Amazon.com or Expedia.com where you can research what you’re looking for, compare prices and buy.
I think the shopping convenience will be there. But whether those health insurance prices are more affordable in 2014 than now is, in my opinion, unlikely. While I think prices will eventually decline or at least not continue their disproportionate growth, the change will happen gradually over the next several years. In 2014, the health care system, the insurance companies and the rest of us will still be adjusting and it’ll be too soon to show the long-term effects of the law. I wish I had a positive prediction, but I doubt you’ll be able to find affordable insurance in two years. To answer your question, it’s unrealistic.
The silver lining is that in the not-too-distant future, you, younger workers coming up behind you, and your kids, will probably have many more choices about where/how to buy affordable health insurance when/if they wish to leave their jobs –whether for early retirement, entrepreneurship dreams or the pursuit of happiness.
© Copyright Eva Del Rio
