What's Your Ratio of Health Care Expenses to Income?

[kcowan]

$1730 for 2 for basic medicare in BC
$3260 for 2 for out-of-province coverage
Pharmacy, dental and Blue Cross not included
All Canadian $ at 0.70 US

 

[mpeirce]

Last year we spent a tad over 6%. That's for insurance premiums and OOP. If we ever get forced into an exchange plan it'll be at least double that.

 

[jkern]

Medical/Dental costs/AGI equals about 30%.

 

[Theseus]

With 2015 being our first full calendar year of retirement, we were at 27.9%. Broken down it was 12.7% for HI premiums, 2.8% for dental care, and 12.4% for medical care. Both of us hit our max OOP last year which we don't anticipate doing again, so we hope to improve on that in 2016. And I'm not counting HSA contributions which are basically pre-paid medical expenses.

 

[scrabbler1]

In my case, I don't have dental or optical insurance but I included those expenses too because it's all health to my way of thinking.

In June of 2013 I went on Medicare and kept my federal retiree BCBS Standard.
In June of 2014 I went on SS, increasing my income.

My health expenses including everything you mentioned, plus dental & optical, has been:

2012: 10% of income
2013: 21% of income
2014: 10% of income
2015: 16% of income
AVERAGE: 14% OF INCOME

As you can see, it varies wildly from year to year depending on my health that year. Some years nothing much happens, other years are not so good. Medicare has been helpful but my health hasn't cooperated.

Like yours, my ratio has jumped around a lot in the 7 years I have been ERed. It has ranged from 13% to 20% but its 7-year average has been 16%. (I have included only interest, dividends, and cap gain distributions in my income.)

 

[Dreaming of Freedom]

I am not retired yet, but these are based on ACA rates, subsidies, and our current budget. 15% of our budget in years were we don't have any medical expenses other than one office visit each, and only regular dental cleanings, xrays, etc. In bad years where we rack up the medical bills, it will eat up to 45% of our budget as long as there are no out of network disasters. There does not seem to be a ceiling on out of network costs on many plans, so I guess our out of network medical expenses could theoretically bankrupt us.

 

[fritz]

DH and I both retired in 2010 (he was 59, I was 52). Since then, our health care expenses -- consisting of insurance premiums, deductibles, doctor visit co-pays, lab tests, and drugs -- i.e., our out-of-pocket costs, have held steady at 33% of income.

DH goes on Medicare this year, and from estimates given him by Medicare.gov, it doesn’t look as if our health care expenses will diminish much, if any. I am curious whether other ER board members’ health care expenses changed -- or didn’t -- once Medicare kicked in. Anyone want to share their experience?

Our health care expenses run about 33% of budgeted base expenses (we carry no debt). Retired in 2009 and go on Medicare this year as well.

 

[Bryan Barnfellow]

$1730 for 2 for basic medicare in BC $3260 for 2 for out-of-province coverage Pharmacy, dental and Blue Cross not included All Canadian $ at 0.70 US

Wow..0.70 US Dollar. I remember about 8 or 10 years ago when I lived in Maine and the Loonie was killing the USD. You could hardly stretch out your arms without touching a denizen of the Great White North, lording it over us with their strong currency! It was great fun having so many truly nice people in the neighbourhood, even if they were just passing through on their way to Florida. Perhaps it will happen again sometime soon! But for me, now settled in Switzerland, I worry over the USD/Swiss franc pair. The strong dollar is hurting our US stock investments, but is great for transferring funds for living expenses to CH. it makes for a kind of ad hoc currency hedge.

-BB

 

[Alan]

2013 - 11.45%
2014 - 10.15%
2015 - 16.7%

I'm 61, DW is 60. Retiree Health insurance from ex-employer. Increase in 2015 due to a medical condition of mine.

2016 figure is already at 12% of income due to 83% increase in premium.

 

[RunningBum]

I don't think % "of income" is too relevant to retirees because income may be high due to Roth conversions, or may be low due to selling stock funds at a loss or very low capital gains. % of money withdrawn makes more sense to me. I was up near 10% one year from using up my high deductible and over the covered max on PT visits. Other years I have very little out of pocket other than premiums, which have been under 3% some years, more like 4% now as rates have risen.

 

[mpeirce]

> I don't think % "of income" is too relevant to retirees because...

I ignore "income" since it has little to do with what I spend. Income of for me right now is mainly a tax management thing (I have no pension, SS, or RMDs).

So my answer we based on my budget. That is, percent of spending for the year.