Will I be denied health insurance after I retire because of preexisting conditions?

No. Mario explains ACA plans are guaranteed issue, so insurers must accept you even if you have serious health conditions. The bigger issue after retirement is usually the premium and the plan design you choose.

Why do many officers work longer just to keep health benefits?

Officer Ty says the cost jump after leaving the city plan is a major reason. Mario agrees and says health insurance can become a monthly expense similar to a mortgage or car payment.

What is Obamacare in this episode?

Mario explains it as a financial assistance framework that can help make premiums more affordable depending on household size, age, and income. He also stresses Obamacare is not a single insurance plan; the plan still comes from an insurance company.

Why does Mario say many retiring officers will not qualify for subsidies?

He explains that subsidies depend on income and household factors, and many retirees will be above the assistance thresholds. In that case, you still get coverage, but you pay the full premium.

What are the three plan terms that confuse most people?

Deductible, coinsurance, and out-of-pocket maximum. Mario says people usually understand deductible but misunderstand how coinsurance interacts with the out-of-pocket maximum.

If I have an 80/20 plan, do I owe 20% of a huge hospital bill?

Not beyond the out-of-pocket maximum. Mario explains you pay coinsurance only until your total paid reaches the out-of-pocket maximum, then the plan covers 100% of covered services for the rest of the year.

Do these plan numbers reset each year?

Yes. Mario explains the plan starts over on January 1 each calendar year. If a major event happens in late December, you may face new exposure after the reset if care continues.

Why does Mario think people overbuy low-deductible plans?

He says fear and confusion cause people to pay higher premiums for richer upfront benefits. His approach is to compare plans using premium plus out-of-pocket maximum and not buy out of emotion.

Are dental and vision included in health insurance after retirement?

Mario explains they are typically separate plans once you leave employer coverage. These add-ons often have annual caps and do not function like unlimited insurance.

Are hearing aids covered after retirement?

Mario says hearing aids are generally not covered in the way people expect under typical private plans. He suggests treating hearing coverage as separate and reviewing plan details carefully.

What is a financial durable power of attorney used for?

A financial durable power of attorney allows someone you trust to act financially on your behalf if you cannot act for yourself. This may include paying bills, writing checks, paying a mortgage, managing accounts, and potentially selling property depending on the powers granted in the document.

When does it make sense for a power of attorney to be effective immediately?

An immediately effective power of attorney may make sense during military deployment, extended travel, or situations where a spouse or trusted person needs authority to keep a business, household, or financial obligation running while you are away.

What does a healthcare power of attorney do?

A healthcare power of attorney allows someone you appoint to make medical decisions for you if you are incapacitated or unable to communicate. The person you choose should understand your wishes and be able to make decisions consistent with your values.

What is a living will and how is it different from a healthcare power of attorney?

A living will provides specific written instructions for certain end-of-life medical situations, such as life support, feeding tubes, hydration, and comfort care. A healthcare power of attorney is broader because it allows your appointed agent to make medical decisions across many different healthcare situations.

Does a living will remove the burden from family members?

Yes. A living will can reduce the emotional burden on family members because your healthcare wishes are documented before a crisis happens. This can help prevent guilt, confusion, and second-guessing when difficult medical decisions need to be made.

Can the person making medical decisions be different from the person managing finances?

Yes. The person best suited to make healthcare decisions may not be the same person best suited to manage financial matters. Families should consider trustworthiness, judgment, availability, emotional readiness, and the type of decision involved when choosing agents.

Can you appoint someone who lives in another state as your agent?

Yes. You can appoint someone who lives in another state as your agent. However, the document is usually prepared according to the law of your primary state of residence, and actions taken under the document may be affected by applicable state law.

How often should powers of attorney be updated?

Powers of attorney and living wills should be reviewed regularly and updated after major life events such as marriage, divorce, death of a spouse, relocation, changes in health, or changes in trusted relationships. Banks, medical providers, and institutions may also prefer documents that have been updated within the last few years.

Seed or Harvest

L.E.O.

Law Enforcement Officer

Independent Financial Education Podcast.

Episode 05

15th APRIL

Officer Ty

Podcast Guest

LEO PODCAST

Living Will vs Healthcare Power of Attorney: Key Estate Planning Documents for Law Enforcement Families

Retiring from law enforcement often means losing a familiar group health plan and stepping into a world that feels expensive and confusing. In this episode, Mario Lizarraga and Officer Ty break down what changes after you leave government employment, why you will still be able to get insured, and how to understand the numbers that drive your real financial exposure.

This guide is especially helpful for Phoenix-area police officers, law enforcement officers, public safety employees, and first responders who are preparing to retire before Medicare eligibility and need to understand private health insurance, ACA plans, and retirement healthcare costs.

For more information about ACA options, visit MAPFL’s Obamacare resource page or compare available health insurance carriers.

This episode helps law enforcement officers and their families understand the estate planning documents that matter while you are still alive. A financial power of attorney allows someone to help with money decisions, a healthcare power of attorney allows someone to make medical decisions if you cannot communicate, and a living will gives written instructions for specific end-of-life medical situations. For officers, first responders, spouses, and families, these documents can reduce confusion, conflict, and court involvement after an injury, illness, or unexpected emergency.

Quick Answer (60 seconds)

When you retire, you can still get health insurance because ACA plans are guaranteed issue, even with preexisting conditions. The bigger issue is cost and understanding how your plan works: deductible, coinsurance, and out-of-pocket maximum. Mario walks through a real example showing that you do not pay 20% forever; you pay coinsurance until you hit your out-of-pocket maximum, then the plan covers 100% for the rest of the calendar year. They also explain that dental, vision, and hearing coverage are usually separate outside of employment, and why working with a broker helps you avoid buying coverage out of fear.

Learn more about MAPFL at:
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Why Retiring Officers Worry About Health Insurance
Guaranteed Issue: You Can Get Covered After You Leave
What “Obamacare” Is (and Is Not)
Premium Reality for Retiring Officers
Provider Networks and Prescriptions Can Limit Your Options
The Three Terms That Confuse Everyone: Deductible, Coinsurance, Out-of-Pocket Maximum
Example Walkthrough: $2,500 Deductible, 80/20 Coinsurance, $8,000 Out-of-Pocket Max
The Calendar-Year Reset and Why Timing Matters
Fear vs Math: Why People Overbuy “Low Deductible” Plans
Dental, Vision, and Hearing After Retirement (Usually Separate)
Why a Broker Matters for Retiring Officers
FAQs
Key Takeaways
Next Steps / CTA

Why Retiring Officers Worry About Health Insurance

Officer Ty describes the reality many officers face: while you are working, group health insurance feels manageable, but once you leave, the premium can become a major monthly line item. Mario agrees and frames it plainly: for many retirees, health insurance becomes like a mortgage or car payment, and you need to plan for it, not guess.

They also discuss why some officers work longer than they want to, simply to keep the group plan in place.

Health Insurance
https://mapfl.com/health-insurance/

Obamacare
https://mapfl.com/blog/obamacare/

Carriers
https://mapfl.com/carriers/

Schedule Your Appointment
https://mapfl.com/schedule-your-appointment/

About Us
https://mapfl.com/about-us/

Guaranteed Issue: You Can Get Covered After You Leave

Mario reassures listeners that insurability is no longer the core problem because ACA plans are guaranteed issue. In the episode, he emphasizes that coverage can be obtained regardless of weight, chronic conditions, or serious diagnoses.

The real challenge is not whether you can get a plan. It is what the plan costs and how it fits your provider and prescription needs.

What “Obamacare” Is (and Is Not)

Mario explains a key point many people miss: “Obamacare” is not a single insurance plan. It is a financial assistance framework that can subsidize premiums based on household size, age, and income.

For many retiring officers, Mario expects financial assistance will not apply, which is why premiums can feel shockingly high compared to what you paid while employed.

Premium Reality for Retiring Officers

In the episode, Mario gives real-world pricing ranges he is seeing for older individuals, and then scales that up for a couple. His point is not the exact number for every household, but the planning mindset: treat it as a major recurring expense, because it can easily reach four figures per month depending on age and household.

Mario also notes that some retirees offset this by starting pension withdrawals immediately, taking a second job, or finding new employment with a group plan.

Provider Networks and Prescriptions Can Limit Your Options

Mario explains that your healthcare needs drive your available plan options. If you must keep specific doctors or need specific prescriptions, that can narrow the plans you can reasonably choose.

His takeaway for retirees is straightforward: if you are highly provider-specific or medication-dependent, you may pay more to protect continuity of care.

The Three Terms That Confuse Everyone: Deductible, Coinsurance, Out-of-Pocket Maximum

They focus on the three core plan mechanics that most people misunderstand:

Deductible
Coinsurance
Out-of-pocket maximum

Mario notes that most people understand “deductible,” but confusion starts once coinsurance enters the picture, especially when people assume they will owe a percentage of a large bill with no ceiling.

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Example Walkthrough: $2,500 Deductible, 80/20 Coinsurance, $8,000 Out-of-Pocket Max

Mario uses a simple example to show how the stop-loss protection really works. In the scenario, there is a major medical event and a very large hospital bill.

The key clarification: you are responsible for the deductible first, then coinsurance applies only until the total you have paid (deductible plus coinsurance) reaches the out-of-pocket maximum. After you hit that out-of-pocket maximum, the plan covers covered services at 100% for the rest of the calendar year.

Officer Ty’s “aha” moment is the same moment most retirees have: the out-of-pocket maximum is the ceiling, not the start of another calculation.

The Calendar-Year Reset and Why Timing Matters

Mario explains that these plan accumulators reset on the calendar year. Officer Ty asks the practical question: what if a major event happens late in the year?

The answer: if the accident is in late December, you can hit your out-of-pocket maximum and then face a reset on January 1, potentially creating new exposure in the new year if care continues.

Fear vs Math: Why People Overbuy “Low Deductible” Plans

Mario explains why many people default to low deductibles: fear of the unknown. He argues that insurers know this and price plans accordingly, raising premiums when people demand richer upfront benefits.

His recommendation is to take an annualized view and remember that large medical bills often end up on payment plans anyway. The idea is not to be careless, but to avoid paying extra premium every month for a scenario that may never happen.

Dental, Vision, and Hearing After Retirement (Usually Separate)

Mario says that outside the employer bubble, dental and vision are typically separate plans and hearing aids are typically not covered in the way people expect. He explains that these add-on plans often function more like capped benefits than full insurance, with annual maximums and limitations.

They walk through how dental plans can include cleanings but still have annual dollar caps that also get reduced by those included services. For vision, Mario describes common designs like an annual exam benefit and an allowance toward frames or contacts.

Why a Broker Matters for Retiring Officers

Mario encourages retiring officers to work with a broker who understands plan mechanics, networks, and prescription alignment. His practical benchmark is experience: someone who has stayed in the business long enough to build and keep a client base.

If you want MAPFL’s help comparing ACA on-exchange and off-exchange options and building a retirement-friendly strategy for healthcare costs, start here:

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FAQs

What is the difference between a living will and a healthcare power of attorney?

A living will gives specific written instructions for certain end-of-life medical situations. A healthcare power of attorney is broader because it allows the person you appoint to make medical decisions if you are unable to communicate or make decisions for yourself.

Why do law enforcement officers need a healthcare power of attorney?

Law enforcement officers face unique risks because injury, illness, or line-of-duty emergencies can happen unexpectedly. A healthcare power of attorney helps make sure a trusted person can speak with doctors and make medical decisions if the officer cannot communicate.

What does a financial durable power of attorney do?

A financial durable power of attorney allows someone you trust to help manage financial matters if you cannot act for yourself. This can include paying bills, handling mortgage payments, managing accounts, and taking care of other financial responsibilities.

Can a financial power of attorney be effective immediately?

Yes. In Arizona, a financial power of attorney can be written to become effective immediately, even while you are still capable. This can be helpful in some situations, but it can also be risky if the person named is not completely trustworthy.

Should the same person handle medical and financial decisions?

Not always. The best person to make medical decisions may be different from the best person to manage money. Families should consider trustworthiness, judgment, availability, and emotional readiness when choosing agents.

Does a living will reduce stress for family members?

Yes. A living will can reduce stress because your wishes are written down before a crisis happens. This can help family members avoid guilt, confusion, and second-guessing during difficult medical decisions.

Are powers of attorney and living wills the same in every state?

No. These documents are governed by state law, and requirements can vary by state. Signing, witnessing, notarization, and validity rules may differ depending on where you live.

Can I name someone who lives in another state as my agent?

Yes. You can usually name someone who lives in another state, but the document should be prepared according to the law that applies to your situation. It is important to understand how state rules may affect the agent’s authority.

How often should powers of attorney and living wills be updated?

These documents should be reviewed after major life events such as marriage, divorce, relocation, death of a spouse, changes in family relationships, or changes in health. Many banks, medical providers, and institutions also prefer documents that have been updated within the last few years.

How can MAPFL help law enforcement families with protection planning?

MAPFL helps law enforcement families think through protection planning, health coverage, life insurance, retirement decisions, and financial education so they can make informed decisions before a crisis happens.

Key Takeaways

You can still get insured after retirement because ACA plans are guaranteed issue.
The real challenge is cost and understanding plan mechanics.
Deductible plus coinsurance only applies until you hit the out-of-pocket maximum.
Everything resets on January 1, so timing can matter.
Dental, vision, and hearing are often separate outside employer coverage and may be capped benefits.
A broker can help you match networks and prescriptions so you do not buy blindly out of fear.

Who This Episode Helps

This episode is for law enforcement officers, police officers, public safety employees, first responders, and spouses who are planning for retirement and need to understand how health insurance changes after leaving an employer-sponsored group plan.

It is especially relevant for people retiring before Medicare eligibility who need to compare ACA plans, private health insurance options, provider networks, prescription coverage, and total yearly exposure.

Next Steps / CTA

Protect Your Family Before a Crisis Happens

If you are a law enforcement officer, spouse, or first responder family, MAPFL can help you think through the protection planning pieces that matter: healthcare decisions, financial decision-making, retirement planning, life insurance, health insurance, and family security.

Book a free consultation to start building a plan that protects your family before an emergency happens.

Book a Free Consultation: https://mapfl.com/schedule-your-appointment/
Call/Text: +1-602-526-3236: https://mapfl.com/contact-us/
Additional MAPFL resources:
https://mapfl.com/podcast/planning-for-healthcare-costs-during-retirement/
https://mapfl.com/blog/obamacare/
https://mapfl.com/carriers/

Reviewed by: MAPFL Editorial Team (Maximize Asset Protection)