Posted by In my previous post I stated that my part-time job as an Ebay reseller does not meet the income requirements for Medicaid in 2027. I did some research on my options and came up with a possible solution. I was automatically put under Medicaid because my income was below $22,025 per year. In Minnesota they have something called MinnesotaCare which has an income range between $21,597 and $31,300 to qualify. I had MinnesotaCare for the first year after I lost my job because I still had enough income that year. My research found that MinnesotaCare does not have a work requirement, because it is a state funded program, not like Medicaid, which is federally funded. It does require a monthly payment based on your income, but it is very affordable.
So, all I need to do is double my income next year to qualify. For 2027, I was planning to start social security anyway. Four months of SS payments would be $10,400, dividend income is typically $12,500, and IRA withdrawals at $300 per month add another $3600. That will bring my gross income to $26,500 which is the middle of the range to qualify for MinnesotaCare. If for some reason I can’t get MinnesotaCare, I should be able to qualify for ACA (Affordable Care Act) health insurance credits. The income range for that is $22,025 to $62,000. Second-Lowest Cost Silver Plan (SLCSP) is approximately $108 per month at my new income level.
It would be ideal to stay on an affordable health plan like this, but when I turn 65, I will be forced to start Medicare. This age threshold disqualifies you from any of the affordable options. The standard Medicare Part B monthly premium is projected to be $209.50 in 2027. You can sign up for a zero-dollar Advantage Plan, but the deductibles and co-pays are very high. I am considering Medigap coverage instead of an Advantage Plan. This could easily add $400 to $600 on top of the monthly Medicare Part B premium. To make things even worse, all of these insurance premiums will increase every year. I was looking forward to having extra spending money in retirement, but it looks like monthly health insurance costs will crush that dream.