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Question for the Money Doctors

Question submitted on Jan 10, 2011.


Our life has changed pretty dramatically. I am disabled and have been collecting payments for 1 year. My spouse is retired, collects a small pension and is healty. His retiree company just sold the business and has advised us that our old health insurance is null and void and we must elect new insurance with about 100% increase in premium and about 40% loss in benefits. Because of my health condition we''re stuck we think. Except for health issues we are debt free, own our home and worked hard to get hear. Do you have any ways we can address the health insurance issue and/or invest to secure our future?


Because you are debt free and you have worked hard your entire life you should be awarded some protection against loss of assets due to medical expense.  Also, you should try to remain with the same insurance provider in order to avoid concerns about pre-existing conditions.

I presume you are approaching medicare age since I read the description "retired".  Any strategy you develop now should be with the expectation of eventually acquiring medicare coverage.  The intent now should be to minimize your cost while maintaining a high level of insurance protection.

In order to reduce your premium cost you could elect with the same provider a high deductible policy.   It would require higher annual out of pocket cost, yet still provide catastrophic coverage. 

Another strategy could include adopting a Health Savings Account. An HSA can only be implemented with a high deductible policy.  It has significant tax advantage and reduces the cost of your primary insurance.   

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