Then they can just skip insurance. Most people don't need it, especially if they already have a lot of money (which is what FIRE means)
Then they can just skip insurance. Most people don't need it, especially if they already have a lot of money (which is what FIRE means)
That plan works until it suddenly doesn't. When it doesn't it's catastrophic for your finances and your health.
If you have an extra couple million dollars above and beyond your regular retirement fund you could self-insure your medical costs. But then you could just buy the health insurance.
Medical expenses are less expensive when you don't have insurance. Insurance is just for catastrophic events, if you do some regular risk analysis you can come to a balance that works for you. If you know a major medical expense is imminent then get the insurance. Most procedures don't happen immediately anyway.
That’s not how insurance works even with the ACA. You have open enrollment is the only time you can get insurance on the open market. Good luck if you find you have a major medical issue right after open enrollment ends - which the Republican administration has shortened and you have to wait 9-10 months.
Obviously said by someone who is young and never had or knew anyone that had an expensive medical procedure like a friend who is 45 who I have known since 2003 and is a cancer survivor and now has to have open heart surgery
I don't believe your friend is most people. I have quite a few who haven't been to a doctor in decades.
So, in your 30s? My parents both had cancer in their late 50s/early 60s (including surgery / chemo) - and paid like $15 for some pain meds in Canada.
Even on a pretty good Kaiser plan, we're paying $200+ per day in the hospital, etc. On a high-deductible, more. They say they have a $1M annual limit, but that they've never enforced it. I hope we never have to find out.
But do you want to take the chance that you will never have major medical expenses between the time you retire early and you are 65 and eligible for Medicare? How many of your friends are over 50?