Fidelity announced their annual findings of health care costs in retirement.

A 65-year-old couple retiring in 2009 will need approximately $240,000 to cover medical expenses in retirement even with Medicare insurance coverage, according to Fidelity Investments' latest health care cost estimate.

The Fidelity study assumes no employer-provided retiree health care coverage and life expectancies of 17 years for a male and 20 years for a female.

The health care cost data released by Fidelity is potentially much lower than what a couple will actually need. An individual’s health care costs are affected by a number of factors including health care coverage, life expectancy, and health status. Take a look at how much the $240,000 can increase based on a couple of changes:

#2) The male has Type 2 Diabetes:
Add an additional $25,000 
Please note that Type 2 Diabetes generally decreases life expectancy but for the sake of this example, the male’s life expectancy remains at 82 like the Fidelity example.

An individual’s life expectancy can vary by 20 years and annual health care costs can vary by 50% based on one’s health profile. Understanding your personal situation and expected health care costs in retirement is a critical step to planning for your future financial needs.

HealthView data is based on proprietary medical underwriting guidelines and an in-depth analysis of U.S. nationwide average healthcare costs. Calculations assume individual has Medicare part A, B, D and Medicare Supplement plan.

Victor M. Sandler, MD’s wrote a recent blog post titled “Two Birds With One Stone: Covering the Uninsured by Fixing Medicare”

He describes our medical system as “a disaster…overly expensive and ineffective.” He mentions three causes of medical waste including “unnecessary tests and overly aggressive treatments, emphasis on procedures rather than prevention, and the conflict of interest that pervades health care in this country.”

The conflicts of interest he describes include the fact that

80 percent of medical research and 70 percent of continuing medical education for physicians is paid for by drug and medical device companies.

Of physicians who author clinical practice guidelines, 80 percent are on the payroll of Big Pharma, and 59 percent have relationships with companies whose drugs were considered in the guidelines they authored.

How do these realities impact my health care today and how will they impact my care when I am retired? How can I insure my interests are met if I am in need of care?

I have performed the role of health care advocate for family members with health issues, and navigating the health care system is an extremely challenging, time consuming, and often frustrating job. It is a job that most patients simply can not do alone.

The time to think about your health care advocate is now, and not when you are in a crisis or laying in an emergency room. You should enlist a family member or friend as your health care advocate. Do this today. Ask your advocate for support in whatever capacity you are most comfortable.

Having a health care advocate will be incredibly valuable to you should you be hospitalized and/or in need of care.