Originally Posted by nyc7erb

The federal tax credit is 85% of an approved HCTC approved health insurance program's premiums. At this time, Delta's retiree program was HCTC qualified. With that, the government will give you an 85% tax CREDIT towards the cost of your health insurance. (There are other insurance programs that are HCTC qualified as well).

In order to be eligible for this tax credit, you must be 55 years old and receiving payments from the PBGC.

The 85% may go back down to 65% this year. It depends on the mood of Congress however.

The good news is that if you are going to get $$ from the PBGC and want to retire early (b4 65), Uncle Sam will pay 85% of the cost of your health insurance premiums. Not too shabby!

That knocks down the cost of "Deltacare" to around $200/month for most retirees.

My cost as a retiree at age 50, married is $212/month in a high deductible HSA. If I was 55, my net cost would be around $35/month. This plan is not with Delta, btw.

So if you are contemplating early retirement and are concerned about the cost of health care, don't be. Come on in, the water is fine!