While nothing may be certain except death and taxes, in 2012, we need to add another qualifier — rising healthcare costs.
A common public misconception exists: many people believe that their healthcare expenses will actually decline after they retire and enroll in Medicare, and that the days of being compelled to contribute 25% for employer-sponsored plans are over. HMOs, PPOs, and referrals will now be replaced by an inexpensive, streamlined, and carefree system that will yield increased time and money for recreation and enjoyment.
Nothing could be further from the truth.
Every day for the next two decades, approximately 10,000 Baby Boomers will turn 65 and now be responsible for 100% of their healthcare expenses.
That’s right. At a time when people will need it most, when the most expensive tests and procedures lay ahead, the burden of healthcare costs will rest solely in the hands of current and future retirees. Instead of worrying about $10 co-pays, newly enrolled subscribers will discover that there are several layers to the system that will result in substantial out-of-pocket expenses. While Medicare Part A covers emergency costs, procedures involving vision, podiatry, and other ailments are not. Higher premiums to cover the closing of the “donut hole” are certain. The purchase of long-term care insurance will become a very expensive and harsh reality.
Sound confusing? Daunting? What about this possibility?
The influx of 78 million new subscribers may simply overwhelm the Medicare system.
So who can help?
We at HealthView Services have specialized in creating tools and solutions to address spiraling out-of-pocket health care costs. Our comprehensive platform will project future healthcare expenses, which can then be incorporated into a sensible portfolio for distribution throughout retirement.
Check out HealthWealthLink for a glimpse of what can be expected as a cost for your health care related expenses in retirement.
Keep in mind that your healthcare in retirement may be your biggest expense while being your most important asset.
A relatively healthy 65 year old couple, who has less than $170,000 in annual income can expect to incur about $560,000 in costs to cover Medicare, Dental, Vision & Hearing.