Hacker News new | ask | show | jobs
by fiftyacorn 2239 days ago
I always wonder how americans can achieve FIRE with the healthcare system.

It seems doable until something goes wrong and you get a huge bill?

3 comments

Most Americans who want health insurance have it. Insurance pays the the bulk of a huge bill. The individual pays a small fraction of a huge bill through deductibles, co-payments and co-insurance (depends on the policy.) This fraction can be paid from the savings a FIRE retiree would have accumulated without significantly affecting their investment income.

The individual pays a larger fraction of smaller medical bills, but because the bills are small, this is also affordable to someone with savings. The majority of medical events are inexpensive.

Everything you said is the opposite of reality in America in 2020.
This Wikipedia article is a good summary, especially the breakdown of uninsured populations. https://en.m.wikipedia.org/wiki/Health_insurance_coverage_in...

There are a number of reports of out-of-pocket spending and insurance plan policy detail is generally available. Do you have a preferred source for that data? This conversation is about FIRE, but a summary of the prevelance of burdensome healthcare costs in respect to the broader US population was published here: https://www.commonwealthfund.org/publications/issue-briefs/2...

Again, these are just gentle introductions to the data. I would be happy to read what you’re looking at.

There are a good amount of healthcare resources for retirees and government workers in [WA, USA].

Before he passed away last summer my grandfather was using $26000USD/mo of insurance benefits which the state paid for as he was a retired public employee[0]. Literally added up all the expenditures because I was visiting and bored. This was mainly GP/Antibiotics at a hospital/PT work. The only thing they don't cover is long term care, of which we are currently paying $7500USD/mo for my grandmother.

Yeah, it's a lot of money and they sold their [Grandparents] house last year for approximately $490,000USD after realtors comissions and fees thankfully before COVID. But I hope that puts things in to perspective for those outside the USA.

Basically you have to do a medicare trust for your house or pay $6000-$13000USD/mo for longterm care. Usually what happens is people spend down the parental assets then apply for medicare and they try and find them a nursing home or memory care bed.

[0] https://www.hca.wa.gov/employee-retiree-benefits/retirees/ho...

I never thought about that side of it; you do need health insurance. Anybody have an answer?
This is what I came up with: https://www.usatoday.com/story/money/2019/06/04/early-retire...

Looks like private insurance, previous employer benefits, your spouse's insurance (if they're still employed), and bare-bones plans are all options.