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amount to project for uncovered health care in retirement
Old 01-22-2012, 09:50 AM   #1
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amount to project for uncovered health care in retirement

As we project our retirement budget, spouse had estimated $250/month for uncovered expenses. I suggested $500/month was safer, but how much do you planning phase folks plan? And, those retired, how much did you plan and do you spend? I do realize that you need to save much more than the amount spent in a normal month.
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Old 01-22-2012, 10:46 AM   #2
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I think since we are of varying health, the amounts for use will vary also.

For me, my goal is to stay ahead of the curve with my HSA. My HSA has a $5000 deductible per year. I reimburse myself each year in Jan for the qualified expenses I paid out the previous year. So far, I'm staying afloat and a little more.

In my budget, luckily, I'm in good health and don't take any regular prescriptions so the monthly budget is low for doctor visits. I'm in the process of having a dental implant (to be finished in June ), so this is a bit higher.
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Old 01-22-2012, 12:15 PM   #3
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Is this a Medicare question?

If it's a private health insurance (fully or supplemental) question, I'd think it would depend greatly on your chosen policy. Uncovered expenses could vary considerably but be less overall (average of many years) if you have a high deductible plan, or be high but pretty predictable with a low deductible - in both cases offset by the difference in premium, so as to be about the same total medical expense long term average. I must be missing something

I am planning on about $1,000/month between premiums and uncovered expenses until I reach MediCare age...
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Old 01-22-2012, 12:21 PM   #4
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Right now I include in my current budget and future projections the insurance premiums for my previous employer medical, dental and vision insurance plus DW medicare Part B, deductibles for all, maximum out of pocket for all (as applicable), plus non-covered expenses for dental and vision. Present estimate is about $16k/year. As I project forward, I escalate these amounts for an assumed average inflation rate of 3% per year. I can adjust the projections as things change.

My situation: Disabled DW, two minor children at home. Have a High deductible retiree health plan with HSA, dental and vision plans. DW is on Medicare parts A and B. 9 years until I go on Medicare Parts A and B when retiree health plan becomes secondary and will cover as a supplemental plan.

I figure uncovered items will mostly be bounded by this barring massively huge uncovered events.

Hey, its a planning tool!
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Old 01-22-2012, 12:34 PM   #5
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My budget line for medical is the premium plus the deductible. The first full year for retirement for both of us, this worked well. Last year...not so much as we hit our max out of pocket. This caused us to be about $4k over budget in medical expenses. We also went over $1k in dental expenses as well.

However, I have a 25% cushion of funds to take care of the 'oh craps'. Some years are just gonna be crappier than others....
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Old 01-22-2012, 12:45 PM   #6
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I have a $75 month premium with a $5k deductible that pays 100% after that. I fully fund my HSA, but I prepare budget wise that I have $500 a month in medical expenses each year. The last 18 months I have only spent $500 but was all teeth cleanings and a wisdom tooth pulled. Take care of the teeth, as that could become a very expensive budget item if they go bad, and you dont want to pull them all and get dentures!
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Old 01-22-2012, 01:00 PM   #7
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My medical budget includes medical-dental premiums, and deductible amounts and co-pays. I have an HSA, but consider the annual contribution a re-alignment of cash.

Luckily, I have not exceeded the medical deductible.

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Old 01-22-2012, 03:14 PM   #8
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Medicare eventually, retiree continuation until then (if Medicare exists). The premiums are not included in the $500/month estimate. That's truly just for "uncovered." Two of us.
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Old 01-22-2012, 03:36 PM   #9
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Quote:
Originally Posted by palomalou View Post
Medicare eventually, retiree continuation until then (if Medicare exists). The premiums are not included in the $500/month estimate. That's truly just for "uncovered." Two of us.
So your deductible is $6,000/yr or more I take it. Admittedly very conservative, but I might use my annual deductible divided by 12 for a monthly budget. That way, any variance would be positive. YMMV
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Old 01-22-2012, 07:47 PM   #10
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Quote:
Originally Posted by Midpack View Post
......I am planning on about $1,000/month between premiums and uncovered expenses until I reach MediCare age...
+1 (for both me & DW); approximates premiums + 50% of deductible
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Old 01-22-2012, 09:13 PM   #11
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Our premium cost is deducted from DH's pension deposit. Then I set aside $100/mo to cover "known" expenses for our maintenance prescriptions and planned periodic doctors appointments. This worked well last year for the things we could plan for.

For the unexpected things (broke a tooth and needed a lump biopsied) I had to use savings to pay the large deductible.

You'd think that if your Rx's stay the same the costs would be predictable. But they haven't been. DHs losartan dropped low in price and then jumped to almost triple in price. On the other hand our generics now have a $15 minimum copayment. A local pharmacy does the same prescription for $5.89 for 90 days. Another prescription is free from our grocery store, so I'm circumventing our mail order plan to save a few bucks.

For 2012 I'll continue with setting aside $100/mo and adjust higher if needed.
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Old 02-11-2012, 10:44 AM   #12
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My biggest concern is something like--after 15 years of paying for the annual colonoscopy, the "new" plan (one of those "you do your share" kind of things, but same BCBS company) suddenly said after the fact this year they would not because there was no pre-approval. The Mayo Clinic did not know this. So there went 2K. We're appealing, but hold forth little hope.
And Sue, you are right: I've been taking one drug for 30 years, and it's been out of patent for longer than that. Yet, it has a bigger copay all of a sudden than a drug that IS patented, and costs more. Hunh?
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Old 02-11-2012, 05:27 PM   #13
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Retired 5+ years. I do not plan / budget for medical expenses, just pay them out of my 72t lump as the year goes along. So far my monthly insurance bill has towered over all other medical expenses combined.
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Old 02-11-2012, 05:38 PM   #14
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In my case, shall issue PA insurance policy is around $715.00/month with an additional 2000 to 2500 /year of deductables. Since retiring at 59.5 the cost escalated from about 550/month. I'll be 65 this Nov. Will need Medigap of some sort.

Will be interesting to see how it all shakes out by next January.
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