Roger Whitney continues the four-part series on navigating health care before Medicare, focusing this week on controlling costs—both through everyday decisions and by understanding how the Affordable Care Act (ACA) subsidy system works now that the expanded credits have expired. He explains the return of the 400% federal poverty level “cliff,” walks through how modified adjusted gross income (MAGI) impacts premiums, shares listener experiences with inflation and subsidy loss, and explores the ethical tension around optimizing for government benefits.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• (00:00) This show is dedicated to helping you not just survive retirement, but have the confidence to lean in and rock it.
• (00:30) Roger introduces week three of the four-part series on health care before Medicare, focusing on controlling health care costs and understanding ACA subsidies. He previews next week’s structured decision framework and conversation with Taylor Schulte of Define Financial.

PRACTICAL PLANNING SEGMENT

• (02:35) Start with the fundamentals: staying or getting healthy through strength, cardio, mobility, screenings, and proactive chronic condition management to potentially reduce long-term costs.
• (04:58) Compare all available coverage options and use practical strategies like staying in-network, timing procedures, and shopping prescriptions to manage costs.

UNDERSTANDING THE ACA SUBSIDY SCHEME (POST-2025 CHANGES)

• (08:48) Roger breaks down the Affordable Care Act’s premium subsidy scheme, designed to make health care more affordable and protect coverage for preexisting conditions. He explains how subsidies are based on income relative to the federal poverty level (FPL) and how the rules have changed over time, including expansions under the American Rescue Plan and temporary extensions during COVID.
• (11:55) Roger explains how the premium tax credit works, including that eligibility is based on having income between 100% and 400% of the federal poverty level, and that exceeding the threshold by even $1 eliminates any subsidies
• (14:00) Roger gives an example of a married couple comparing higher versus lower income, illustrating how managing income can significantly affect subsidies in the years before Medicare.
• (15:47) What counts toward Modified Adjusted Gross Income (MAGI) and what does not count.
• (18:00) Reconciliation risk: estimating income during open enrollment and potentially repaying subsidies if actual income exceeds projections.
• (22:30) Strategic planning opportunities: building tax diversification before retirement (taxable, Roth, HSA) to create flexibility in managing MAGI and avoiding unforced errors like unexpected capital gain distributions, RSU vesting, or inherited IRA withdrawals.
• (26:40) Common pitfalls that can unexpectedly reduce your health care subsidies, and why keeping a buffer below the income cliff matters.

LISTENER QUESTIONS & OBSERVATIONS

• (30:25) Joe reflects on retiring in his early 50s and how health care costs quickly became a major factor in his retirement planning.
• (35:35) Clarification on ACA navigators and where to find assistance through HealthCare.gov and research from Kaiser Family Foundation.
• (37:00) David shares his experience navigating insurance before Medicare, highlighting how exploring different options helped manage costs.
• (38:36) Gene asks about handling a gap in coverage before Medicare, and Roger shares strategies to manage costs and explore available options.
• (45:20) Philosophical discussion on whether it is appropriate to intentionally manage income to qualify for subsidies, and how each person must reconcile financial optimization with personal values.

SMART SPRINT

• (51:30) Choose one area of spending this week—health care or otherwise—and apply intentional cost awareness to build the habit of conscious cost control.

REFERENCES

• Submit a Question for Roger
• Sign up for The Noodle
• The Retirement Answer Man
• Kaiser Family Foundation (KFF)
• Healthcare.gov
  
  

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• (00:00) This show is dedicated to helping you not just survive retirement, but have the clarity, confidence, and comfort to lean in and rock it.
• (00:30) Roger introduces week two of the four-part series on health care before Medicare and explains why assumptions about health care costs can shut down curiosity, create false tradeoffs, and delay retirement decisions.

PRACTICAL PLANNING SEGMENT

• (05:05) After last week’s sticker shock, Roger shifts the focus to observing health care options before tackling cost mitigation next week.
• (05:28) Option #1 — COBRA: how continuation coverage works, who qualifies, how long it lasts, and why it can serve as a temporary bridge despite higher costs.
• (12:35) Option #2 — Affordable Care Act (ACA): marketplace coverage, guaranteed issue for preexisting conditions, plan tiers, and why the system is complex but flexible.
• (19:46) Option #3 — Part-time employer coverage: using part-time work to access group insurance, earn income, and maintain purpose and social connection.
• (25:20) Other alternatives, including private non-marketplace plans and health share plans, and why they require caution.

LISTENER QUESTIONS

• (28:19) Joni asks about creating a trust will instead of a straight will, naming her son as beneficiary, and how traditional and Roth IRAs would be distributed under SECURE Act rules.
• (34:42) Christine asks whether it’s possible to anticipate capital gains distributions in open-end mutual funds before year-end.
• (38:45) Andy shares an observation about Monte Carlo simulations.

SMART SPRINT

• (42:20) Roger encourages listeners to identify and challenge their assumptions about health care and retirement timing.

REFERENCES

• Submit a Question for Roger
• Sign up for The Noodle
• The Retirement Answer Man
• Kaiser Family Foundation (KFF)
• Healthcare.gov
  
  

Roger Whitney kicks off a month-long series on navigating health care before Medicare, introducing Cerberus—the three-headed dog of Greek mythology—as a framework for understanding the biggest challenges retirees face when leaving employer-sponsored coverage. He breaks down the three heads of Cerberus, answers listener questions about retirement planning, and shares recent book recommendations from himself and the team.

OUTLINE OF THIS EPISODE OF THE RETIREMENT ANSWER MAN

• (00:00) This show is dedicated to helping you not just survive retirement, but have the confidence to lean in and rock it.
• (00:30) Roger introduces the Cerberus framework and outlines the four-week series on health care before Medicare.

HEALTH CARE BEFORE MEDICARE: THE THREE HEADS OF CERBERUS

• (02:20) Roger explains why retiring before Medicare requires a strategy and introduces the three “heads” of the health care Cerberus.
• (03:11) “Head” #1: The true cost of health care without an employer subsidy and why it creates sticker shock in retirement, especially when paid from pre-tax accounts.
• (10:50) “Head” #2: Coverage challenges, including narrower networks, fewer plan options, and the potential loss of trusted doctors and specialists.
• (15:13) “Head” #3: Increased complexity in choosing plans, managing care, and navigating ACA subsidies based on modified adjusted gross income.

LISTENER QUESTIONS & OBSERVATIONS

• (19:20) Roger responds to listener questions about saving discipline, the 4% rule, geographic cost differences, values-based planning, and how taxes are modeled in retirement case studies.

SMART SPRINT

• (33:00) Roger encourages listeners to review the health care assumptions in their retirement plan, especially for those retiring before Medicare age.

WHAT’S ON THE BOOKSHELF

• (34:14) Roger and the team share recent book recommendations, including history, personal finance, purpose, habits, and wealth.

REFERENCES

• Submit a Question for Roger
• Sign up for The Noodle
• The Retirement Answer Man
• Kaiser Family Foundation (KFF)
• Healthcare.gov