What will you pay for health care in retirement?
This is the final installment of the blog series. See previous posts from Nov. 2nd and 14th.
Here is the third factor that influences what you will pay for health care in retirement:
Your Source of Coverage:
Some Americans are still fortunate to have a certain percentage of their health care benefits provided by their former employer.
For most Americans, this is not the case.
Most retirees need to choose between an Original Medicare, plan which includes buying supplemental Medigap insurance, OR to choose a Medicare Advantage Plan.
Here’s a chart comparing the two:
(Source: Merrill Lynch)
The fourth and fifth factors of heath care premiums in retirement are:
Your Age and Your Health:
Obviously, the more you need to visit doctors, dentists, specialists, therapists and/or optometrists, the more you’re going to spend on health care.
The older we get, the more our parts need repair. AARP’s Health Costs Calculator can give you an idea of how much you might pay for health care based on your age and health conditions.
Another excellent resource is The Kaiser Family Foundation which provides an illustration of how costs varied in 2011 based on a person’s physical challenges. (Note: “ADLs” represent the number of “activities of daily living” — such as bathing, dressing, and homemaking — that are limited by a person’s health.)
Other options include Healthcare.gov or the Kaiser Family Foundation. These websites provide an idea of how much you could pay in insurance premiums courtesy of the Affordable Care Act. Direct Primary Care and eHealthInsurance might also help locate options for you.
As a conclusion to this series, I can only imagine how overwhelming all of these information might be.
We’re here to support and guide you and your family on this part of your life journey.
I look forward to hearing from you!
Barbara A. Culver
CFP®, ChFC®, CLU, AEP®