Retire Early Lifestyle
Retirement; like your parents, but way cooler

In 1991 Billy and Akaisha Kaderli retired at the age of 38. Now, into their 4th decade of this financially independent lifestyle, they invite you to take advantage of their wisdom and experience.

5 Ways to Manage Health Care Costs in Early Retirement

Harrison Banks

Photo by Artem Beliaikin on Unsplash

Early retirement means the freedom to pursue your passions and enjoy life on your terms. However, it also brings unique financial challenges, particularly regarding health care. You're still years away from the medicare eligibility date, so concerns about how to pay the medical expenses top the list for many who retire early.

Without proper strategies, out-of-pocket expenses can burn through savings in record time. You can control some of these costs with some insights while still getting the care you need without breaking the bank. Here are five strategies to help you navigate health care costs in early retirement:

Target High-Deductible Health Plans

When working out a retirement budget, make monthly premium costs as low as possible. You can apply for an HDHP (High-Deductible Health Plan). It will come with relatively higher deductibles but lower premiums than traditional plans. Many also qualify for Health Savings Accounts, which enable the contributor to save pre-tax dollars to pay for qualified medical expenses.

The HSAs can be used to pay for health care expenses that are not covered by insurance. You can even carry over the HSA balance over the years, giving you financial safety in the event of a future health need.

Find Affordable Health Insurance Options

Depending on your income level, focus on the plan that suits you well and confirm the subsidies available. This approach can help lower your monthly premium, giving you more stability. Sometimes, early retirees can receive Medicaid based on income and other factors.

This does not make all retirees eligible, but weighing all insurance options sets you apart from dealing with higher-than-necessary costs. The Consolidated Omnibus Budget Reconciliation Act (COBRA), for example, allows you to temporarily continue your employer's health insurance plan for a certain period, which can be up to 18 months after retiring.  

File for Medical Settlement

Some retirees develop health conditions from the working environment, such as mesothelioma, due to exposure to asbestos. If you develop such a condition, filing for mesothelioma settlements helps cover medical treatment that might be required afterward. 

Usually, those whose exposures to asbestos during their careers result in related illnesses initiate these settlements. Other compensations include pain, suffering, and lost wages if the illness requires early retirement. You may seek the help of a lawyer to file a claim if you or your loved one have been exposed.

Focus on Preventive Care

With routine check-ups and screening, you can find health problems early, in their most treatable stages, before they become severe and costly. Preventive care is included in most insurance plans, such as HDHPs and marketplace plans.

You also have to adopt a healthy lifestyle, boosting your physical and mental health. Have a program that guides you in exercising, dieting, and social interactions. Seek help from dieticians and wellness coaches on how best to tailor the fitness plan.

Consider Long-Term Care Insurance

Anything from nursing home care to home health aides can be expensive, mainly when you depend on care for an extended period of life. It is good to acquire long-term care insurance early to protect your retirement savings.  

The coverage extent may vary depending on the insurance provider and policy arrangements. What matters is ensuring that the plan you opt for sorts most of the costs linked to old-age healthcare needs. This approach will mean no or minimal out-of-pocket expenditure, which can drain your retirement savings.

Endnote

Everyone can easily enjoy their new life's chapter after an early retirement. It starts with sound management of healthcare costs through forethought on accessing medical care without compromising financial health. You must also add some extra unforeseen medical expenses and consider how filing for settlement can help. 

Retire Early Lifestyle appeals to a different kind of person – the person who prizes their independence, values their time, and who doesn’t want to mindlessly follow the crowd.

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