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Old 11-02-2014, 01:01 PM   #21
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250k / 30 years = 8.3k / year per couple. That seems reasonable to me. I'll be happy with that amount since I am budgeting 15k / year.

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Old 11-02-2014, 01:09 PM   #22
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Originally Posted by bhoferp View Post
......................Medicare has a limit on the amount of physical therapy they will pay for in one year. I've been improving nicely, but am not well yet. My physical therapist thought further physical therapy would help me continue to improve, but since I didn't have any surgery said it would be useless to petition Medicare for more pt. I have supplemental insurance, but they don't pay on anything Medicare doesn't cover. ............ I still have the option of paying out of pocket (it's quite expensive) or waiting till next year. I also paid out of pocket for shoe inserts at my podiatrist's office (she made adjustments for my particular needs) at $55 each as Medicare doesn't cover them.

Because my progress has been so slow, I have been paying out of pocket for cold laser treatments (which Medicare doesn't cover) at $42 per session. I think it has been helpful, but adds up pretty quickly.

.................................................. ......

Since I'm so new to Medicare, I don't know how many times I will run into things Medicare doesn't cover, but could definitely see it adding up over the years.
Thanks for the education. I'm also trying to understand what the supplement doesn't cover. Medicare says N/A to out-of-pocket max for plan F and many others but doesn't say 0. My practical experience has been 0 but I have been wondering where the holes are........there is an issue w/ hospital coverage running out if you really push it but it sounds like that is not very likely. There is a limit on foreign medical coverage and something about blood. I hadn't thought about PT and probably there are other limits lurking ..........

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Old 11-02-2014, 02:03 PM   #23
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Originally Posted by pb4uski View Post
imoldernu, those are costs for 2 people? And including insurance premiums?

I think the OP was looking for healthcare costs not including insurance premiums (or long-term care costs) for one person.
Yes... for two... though on the basis of my dumb... the AZ cost will be very high and very soon.

I understood the "after insurance" to be the amount paid after the insurance company paid their part. In other words... the cost to the individual would be the insurance cost and the amount to be paid out of pocket. In other words... the actual total cost to the individual.
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Old 11-02-2014, 10:35 PM   #24
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It was a bit confusing in that the OP referred to the average retiree paying $250k (which suggests one person) but the Fidelity document added later refers to a couple needing $220k.

Also the OP referred to medical bills after insurance (and I didn't think of insurance premiums as a medical bill) but the Fidelity survey definition seems to include premiums.

So the $220k if for a couple and includes premiums, co-pays, co-insurance, items not covered by insurance but excluded dental and LTC costs.
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Old 11-03-2014, 08:59 AM   #25
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I think $220-250K is grossly understated for early retirees.

The Fidelity study focused on 65+ medicare-eligible retirees, which is only a 17-20 year period. I retired at 52, DW 54... we're looking at potentially 30-40 years, with no medicare for the first 13 years. And who knows if it will actually be there in 13 years.

The study is also stated in TODAY'S dollars, not the nominal dollars DW and I will actually spend over the next 30+ years. Our premiums alone start off at almost $8K/yr ($650/mo), and judging from recent threads, that appears to be on the low side. Add in out-of-pocket expenses, inflation at 5-6% for medical costs, factor in deteriorating health as we age... and the figure for early retirees is easily north of $700K. And that's for the 30-year scenario.

I think it's not unreasonable to sketch up a scenario that's longer than 30 years, has some watered-down remnant of medicare, medical inflation higher than 5-6%, at least one of us requiring LTC, etc.

Those of you who characterize these articles as "sensational" should probably sharpen your pencils.
Retired at 52 in July 2013. On to better things...
AA: 55% stock, 15% real estate, 27% bonds, 3% cash
WR: 2.0% SI: 2 pensions, some rental income, SS later
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Old 11-03-2014, 09:11 AM   #26
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Here's some hard numbers (ours):

Both on Medicare with Sup Plan F (the best) and Part D for drugs.

Currently we (2) pay (combined):

Medicare: $210/month
Sup Plan F (not high deductible): $450/month
Part D: $70/month

Or: $730/month (~$9,000+ per year for us as a couple on Medicare with the best Supplemental policy.)

Now that is only for insurance, not bills, although Plan F covers all deductibles, copays, excess charges, etc.

What's not covered is hearing aids, dental, corrective glasses, part payment on prescriptions.

This year, and last, DW, who has COPD, has cost us out of pocket over $5,000 in excess prescription charges.

Good thing no one has cancer here.

So, if we make 25 years in retirement on Medicare, then our cost of insurance will easily be over $250K.

Then add in all the other stuff that can cost and not be covered. Heck, hearing aids are $5K alone and last year we spent $8K on new dental bridge work.

Better plan for the worst if you are looking at costs into Medicare years.
......."Everybody has a plan until they get punched in the face." -- philosopher Mike Tyson.
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Old 11-03-2014, 02:13 PM   #27
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I can share some second-hand info that makes me think the numbers are quite reasonable:

My uncle is 86 and has Alzheimer's. My aunt is paying $4K a month out of pocket to have home health care. How long will that last? Who knows? But if it lasts a few years, $48 a year x $?? will add up quick.

My mother is 77 and has been battling cancer for 7 years. I don't know the costs, but any such long, drawn out process isn't going to be fully covered. Also, she has had quite a number of expensive dental procedures over the last 10 years - easily $5k some years.

Alzheimer's runs in my family on my mother's side. Her mother had it, and my mother is showing signs. My grandmother spent 14 years in a nursing home. All of her assets went to care, and then she went on Medicaid.

I don't think it is unrealistic to plan on $10K a year for 25 years in retirement for DH and I at all.

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