$500,000 Surprise: Health Care Sticker Shock Awaits You in Retirement

[Blue Collar Guy]

This head line is like other ones i have seen. I dont know where they get these facts. My wifes uncle is dead broke, all his friends are dead broke, if he wasn't so lazy he would be a can collector. The guy and all his type never saw 5 Grand at one time let alone a half a million. These people do not live in the real world. The average couple 65 years old do not have a half of million dollars, and they wont be earning it in their lifetime. The median net worth is 194 thousand(https://www.forbes.com/pictures/gddm45fefm/net-worth-age-65-69/#6c3faf72394b), and where is the other 300k coming from?Yeah they cherry picked some data so some "writer" could get a paid article with shock headlines. MY own mother is well healed, she pays i think 105 a month for medicare and 7 dollars a month for the , blue cross blue shield/GHI, if she didnt have that she would be paying about 250 a month plus the 105.

 

[MichaelB]

Here's the study Bloomberg referenced in the article, http://www.hvsfinancial.com/PublicF...alth_Care_Costs_Data_Report_FINAL_6.13_V2.pdf

Total projected lifetime health care premiums (Medicare Parts B and D, supplemental insurance, and dental insurance) for a healthy 65-year-old couple retiring this year are expected to be $321,994 in today’s dollars ($485,246 in future dollars). Adding deductibles, copays, hearing, vision, and dental cost sharing, that number grows to $404,253 in today’s dollars ($607,662 in future dollars).

The $500k does not include LTC.

 

[daylatedollarshort]

I just don't see a future in the U.S. where seniors, a strong voting block growing in size as the baby boomers age, giving up food and housing to pay for medical care or going without medical care, since most other developed countries, many less wealthy than the U.S., seem to be able to afford some kind of universal or at least affordable healthcare. Most retire households don't have retirement funding of $500K, let alone pay that for health care alone.

Plus long term demographic trends point to more diverse U.S. population, groups that tend to vote on the more liberal and social benefits oriented end of the political spectrum.

 

[jebmke]

When I set up my "plan" in 2007 I assumed $25K per year for two of us forever. I didn't even consider LTC. In 2008 I bought a slug of TIPS so now mentally I sort of view that as my LTC bucket. or maybe I'll buy an expensive car and drive off a cliff. Can decide that later.

 

[LARS]

or maybe I'll buy an expensive car and drive off a cliff.

I see one potential tiny flaw in this part of your plan. Unless you expect that day relatively soon your "expensive car" will most likely be chuck-filled with technological do-dads and thing-a-mabobs that will thwart you well intentioned plunge over a cliff!

 

[Blue Collar Guy]

When I set up my "plan" in 2007 I assumed $25K per year for two of us forever. I didn't even consider LTC. In 2008 I bought a slug of TIPS so now mentally I sort of view that as my LTC bucket. or maybe I'll buy an expensive car and drive off a cliff. Can decide that later.

Nice you planned very well. My wifes uncle has a different plan, he assumed zero per year for health care., he doesnt even pay for the cab that takes him home from the medical appointments. . Long term care? He set aside another zero for that, not a care in the world. He saves his money for things that are important like cigarettes, bowling league fees, and lottery tickets. Oh his premiums? Zero he doesnt even pay the $104.90 a month from his social security check. The author of the article needs to do a follow up on the majority of the population

 

[ownyourfuture]

How long can one sector increase in cost over three times the rate of general inflation? There needs to be a breaking point eventually.

Funny, I made the identical statement earlier this week, except I was referring to college tuition

 

[aja8888]

Nice you planned very well. My wifes uncle has a different plan, he assumed zero per year for health care., he doesnt even pay for the cab that takes him home from the medical appointments. . Long term care? He set aside another zero for that, not a care in the world. He saves his money for things that are important like cigarettes, bowling league fees, and lottery tickets. Oh his premiums? Zero he doesnt even pay the $104.90 a month from his social security check. The author of the article needs to do a follow up on the majority of the population

He has medical appointments? Why? That would cut in to his free time!

And, if he didn't go to the doctor he wouldn't know he was sick and have to take those pills which are in those hard to open little bottles.

 

[Blue Collar Guy]

He has medical appointments? Why? That would cut in to his free time!

And, if he didn't go to the doctor he wouldn't know he was sick and have to take those pills which are in those hard to open little bottles.

Hahahahah,

 

[meierlde]

I see one potential tiny flaw in this part of your plan. Unless you expect that day relatively soon your "expensive car" will most likely be chuck-filled with technological do-dads and thing-a-mabobs that will thwart you well intentioned plunge over a cliff!

or wait till it decides to drive off a cliff on its own due to gps errors.

 

[bradaz2488]

Nice you planned very well. My wifes uncle has a different plan, he assumed zero per year for health care., he doesnt even pay for the cab that takes him home from the medical appointments. . Long term care? He set aside another zero for that, not a care in the world. He saves his money for things that are important like cigarettes, bowling league fees, and lottery tickets. Oh his premiums? Zero he doesnt even pay the $104.90 a month from his social security check. The author of the article needs to do a follow up on the majority of the population

When I hear stories like this I have to wonder "who" is really the smartest person in the room.. The person that LBTM and saved for retirement or the person who lived paycheck-to-paycheck and can live and survive just fine without having saved anything and the extra bonus of being stress free...

 

[Blue Collar Guy]

When I hear stories like this I have to wonder "who" is really the smartest person in the room.. The person that LBTM and saved for retirement or the person who lived paycheck-to-paycheck and can live and survive just fine without having saved anything and the extra bonus of being stress free...

yeah I agree, while he was telling stories to his bowling alley buddies, I was working 5 more years "just in case". Any extra program he finds out about, i.e his $194 a month food stamps, well that just frees up more money to make side bets in the cash prizes at the bowling alley.

 

[aja8888]

yeah I agree, while he was telling stories to his bowling alley buddies, I was working 5 more years "just in case". Any extra program he finds out about, i.e his $194 a month food stamps, well that just frees up more money to make side bets in the cash prizes at the bowling alley.

Do you get the food stamp money on a debit card in NY like we do in TX?

 

[Blue Collar Guy]

Do you get the food stamp money on a debit card in NY like we do in TX?

I know he gets the food stamps, on the same card he uses when he sees the doctor. Its plastic like a credit card, and has a magnetic bar code.

 

[Alex The Great]

Actually, I wonder does out-of-pocket Medicare cost vary with the locations? For example, TX vs CA? It would be nice to know.

 

[Blue Collar Guy]

Actually, I wonder does out-of-pocket Medicare cost vary with the locations? For example, TX vs CA? It would be nice to know.

My wife's uncle pays zero where ever he goes. He fled to Vegas for a few years, he paid nothing there. Now he is letting NY reap the benefits of his residency.

 

[mamadogmamacat]

I also think this is unrealistic for the majority of retirees. Medicare/Medicaid pays for quite a lot for many of the 65+ friends I know here in GA. OOP costs (primarily Medicare premiums) are on the order of 1K to 2K at most, on an annual basis. Many insurers (Kaiser is particularly aggressive about this) bend over backwards to "help" (obviously it is self serving for the insurer, but not the taxpayers) them get into whatever federal and state programs there are to pay many HC costs. For me, in first year of ER, pre 65, my OOP actual cost, mostly premiums, was just under 9K, with no subsidies.

 

[Scuba]

I see one potential tiny flaw in this part of your plan. Unless you expect that day relatively soon your "expensive car" will most likely be chuck-filled with technological do-dads and thing-a-mabobs that will thwart you well intentioned plunge over a cliff!

[emoji23]

 

[daylatedollarshort]

I'm using $10K a year for healthcare costs post Medicare years in a plan with a lot of buffer if we do need more for health care or some other out of plan expenses. That number seems to track pretty close most years to the Fidelity predictions for healthcare costs for a retired couple.

 

[ivinsfan]

Not for company's retiree heath insurance. I think it will increase with inflation but not related to age. It's the individual market you are referring to where it may increase with age.

I think that might depend on how much of the premium the company pays, some pay a % or have a cap.

 

[ShokWaveRider]

I am getting concerned about posting on any healthcare post, as sooner or later it seems to get closed prematurely. It is just me?

 

[Meadbh]

I am getting concerned about posting on any healthcare post, as sooner or later it seems to get closed prematurely. It is just me?

No, it's not just you. The rule is: Thou Shalt Not Express An Opinion. Disobey it at your own risk.

 

[Blue Collar Guy]

I am getting concerned about posting on any healthcare post, as sooner or later it seems to get closed prematurely. It is just me?

I think when they get a political slant , they get closed. Thats the beauty of this forum, they try to keep everything calm.

 

[Focus]

How long can one sector increase in cost over three times the rate of general inflation? There needs to be a breaking point eventually.

That's what I thought 15 years ago, and yet here we are. There seems to be no breaking point. It's insane.

 

[marko]

Thanks pb4uski. And thanks BCLover for bringing this up.
Does anyone have similar numbers to pb4uskis?

My Mom, age 87 hasn't spent more than $10K total in the past 10 years on medicals, except for her tiny Medicare payments and about $500 per year in Rx.

She did have a bad fall a few years ago and spent 4 days in the hospital, MRIs etc and her OOP bill came to $1200.