• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Unsworth LaPlante, PLLC

Vermont Estate Planning Attorneys

Vermont: (802) 879-7133

Attend A Free Workshop
  • Home
  • Our Firm
    • About Our Firm
    • Meet Our Team
    • What to Expect When Working with Us
  • Services
    • Estate Planning
    • Incapacity Planning
    • IRA & Retirement Planning
    • Legacy Planning
    • LGBTQ Estate Planning
    • Medicaid Planning & Elder Law
    • Pet Planning
    • Special Needs Planning
    • Young Families Planning
  • Resources
    • Articles
    • Elder Law Reports
    • Elder Law Resources
      • Burlington
      • Montpelier
      • Rutland
      • St. Johnsbury
      • White River Junction
    • Estate And Gift Tax Figures
    • Free Estate Planning Worksheet
    • Frequently Asked Questions
      • Estate and Gift Tax
      • Estate Planning
      • FAQs for Families Without an Estate Plan
      • Incapacity Planning
      • IRA & Retirement Planning
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Medicaid
      • Pet Planning
      • Special Needs Planning
      • Trust Administration
      • Trusts
      • Wills
    • Is Your Estate Plan Outdated?
    • Medicaid Resources
      • Medicaid Analysis Worksheet
      • Medicaid Guide
      • Vermont Medicaid
    • Newsletters
    • Presentations
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
    • SECURE Act
    • Top Estate Planning Techniques
  • Webinars/Seminars
  • Reviews
    • Our Reviews
    • Review Us
  • BLOG
  • Contact
Home » Between Retirement and Elder Years

Between Retirement and Elder Years

January 8, 2014 by Stephen Unsworth

Many Americans are retired, but also are able to carry health insurance through their former employer’s retirement only insurance plans. Until recently, it was a significant benefit for those who might not be preparing for their “elder years” but who were also no longer working full time. You know: those golden years when life falls into place, the grandkids are the only priority and enjoying life without budgeting the pennies is no longer the reality. After all, this is our reward for working hard, planning for our retirement, taking care to cover our financial bases and even putting into place our burial policies and other estate planning considerations.

With the new healthcare laws, everything has changed. While those changes may be good for you and your family, for others, the changes can present more than a few quagmires.

Retirement and Insurance Coverage

One common scenario playing around the nation are letters from insurers with less than ideal news about premiums and coverage. Retirees are learning that their premiums are going to be increased at the beginning of the year. In some instances, they’re doubling. This means those pennies are going to be closely watched again in some instances those increases are unrealistic. Further, it’s also placing some couples into a situation where they may not qualify for subsidized health insurance in the Affordable Care Act Marketplace exchange without making other tough decisions.
They don’t qualify for Medicaid or Medicare, but now their backs are to the wall.

Solutions

There are solutions, though. Many retired couples are either keeping the retirement only insurance plans for the primary person and dropping the spouse or they’re dropping the policies completely (if they’ve not already been dropped by the insurer). In some cases, the spouse can qualify for subsidies on the exchange, which can offset the financial increases. In others, the retiree drops his insurance plan completely and instead is shopping via the Obamacare exchange.

The Numbers

Because employer sponsored insurance is often provided with minimum coverage, those cancellation letters have already arrived from insurance carriers in droves. If it pays for less than 60 percent of covered medical expenses, there’s a good chance the retiree has already seen his coverage drop or his premiums skyrocket. By the new laws, “unaffordable” means the premiums are more than 9.5 percent of one’s income, so even if the premiums are increased to get the policy in compliance with the guidelines, they often become unaffordable in the process. Note that as long as coverage for one person doesn’t exceed 9.5 percent of family income, the plan is considered affordable, even if the premium for family coverage exceeds that threshold. Since the plan is considered affordable, employer-insured workers generally can’t qualify for subsidies on the marketplace.

The Silver Lining

Here’s where the silver lining plays into the dynamic: the law treats people with retiree coverage differently than those working full time and with employer based insurance. This means that retirees who are eligible for retiree coverage but who opt to not receive it also aren’t deemed to have minimum essential coverage. They are then able to apply for premium tax credits.

What this equates to is that if you decide to not use the retiree plan, but instead choose to go through the marketplace, you may then qualify for those premium tax credits; the same ones that are available to those with incomes between 100 and 400 percent of the federal poverty level, presently at $15,510 to $62,040 for a couple in 2013.

What you’ll want to pay attention to is the premiums in relation to the type of coverage.

Keep in mind, however, that even though the premiums may be more affordable on the exchange, it’s important to carefully compare the benefits in your retiree plan with those in the exchange plans to make sure a new policy provides the coverage you need.

  • Author
  • Recent Posts
Stephen Unsworth
Stephen Unsworth
Stephen A. Unsworth is admitted to practice in both Vermont and Maine, and has more than 30 years of experience in estate planning and business law. His mission is to provide quality estate planning services, including assistance with Living Trusts, Wills, Medicaid Planning, Probate, Trust Administration, Powers of Attorney, Special Needs Planning, and Family Limited Partnerships.
Stephen Unsworth
Latest posts by Stephen Unsworth (see all)
  • Trustee Discretion – How to Avoid Too Much or Too Little - June 28, 2022
  • Am I Required to Accept an Inheritance? - June 16, 2022
  • How Do I Choose the Right Trustee? - June 9, 2022

Filed Under: General Tagged With: Insurance, retirement, medicare, healthcare, affordable care act, marketplace, premiums, premium tax credits, Medicaid

Other Articles You May Find Useful

Essex Junction estate planning attorney
What Can I Do to Discourage a Will Contest after I Am Gone?
Essex Junction estate planning attorney
Am I Required to Accept an Inheritance?
Essex Junction estate planning attorney
Why Do I Need an Advance Directive?
Essex Junction probate attorneys
What Assets Avoid Probate?
Essex Junction estate planning attorney
What Should Be Included in My Estate Plan?
Essex Junction trust administration attorneys
Can a Trustee Be Fired?

Primary Sidebar

Elder Law and Medicaid Planning Attorneys

Unsworth LaPlante, PLC

DOWNLOAD OUR FREE ESTATE PLANNING WORKSHEET

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.
  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

Blog Subscription

  • This field is for validation purposes and should be left unchanged.

Essex Junction, VT

26 Railroad Ave
Essex Junction, VT 05452
United States (US)
Phone: (802) 879-7133
Fax: (802) 879-0408

Map

unsworth_sidbr_map

Office Hours

Monday8:00 AM - 4:00 PM
Tuesday8:00 AM - 4:00 PM
Wednesday8:00 AM - 4:00 PM
Thursday8:00 AM - 4:00 PM

Footer

footer-logo
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

The information on this Vermont Attorneys & Lawyers / Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.

American Academy of Estate Planning Attorneys, Inc. Privacy Policy | Contact Us | Disclaimer | Site Map | Powered by American Academy of Estate Planning Attorneys

© 2022 American Academy of Estate Planning Attorneys, Inc.