Health Care Challenges For Older Americans

By Kim Callwood, MD

MD Plus

. http://247care.md-plus.com/

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Health Care Challenges For Older Americans

It is projected thatthe average65-year-old couple retiring in 2013 with Medicare insurance coverage will need approximately $276,000 to cover medical expenses during the combined remainder of their lifetimes. This estimate includes deductibles, supplemental insurance premiums, out-of-pocket expenses, andservices excluded by Medicare. The figure does not include over-the-counter medications, most dental services, and most long-term care expenses andwould be agood deal more if they need to use a nursing home.Health care after retirement is more expensive than most realize.

Traditional Medicare (Part A) covers in-patient hospital costs and stays in skilled nursing facilities plus hospice care. Most pay no extra premium for Part A, but in 2013 there is a deductible of $1,184 for inpatient hospital stays. This amount you must pay out-of-pocket.

Part B, which covers visits to your physician, outpatient services, preventive care and certain home health visits charges an extra premium and in 2013 this is $1,258.80 a year.

Part D,which covers prescriptiondrugs charges, charges an average of $480 per year.

Adding all this together in 2013 you will pay $3,069.80 for the year for basic Medicare coverage assuming you meet your hospital deductibles.

Americans are living longer and as a result health care expenses continue for many years past what our parents and grandparents paid as a result of their shorter life spans. The latest figures show life expectancy is 78.2 years from birth; however, once Americans make it to age 65, men can expect to live an additional 17 years and women can expect to live 20 more years.

In 2009, the amount of savings needed to cover health insurance premiums and out-of-pocket health care expenses in retirement are as follows

A married couple with average health care expenses would need savings of $268,000 to have a 50% chance of having enough money for retirement health costs, or $414,000 for a 90% chance. (The comparable 2008 numbers were $246,000 and $376,000.)

If you are retired and have a family that includes dependent children the 2010 cost for family healthcoverage is $19,596 according to a Towers Perrin study. The survey finds the cost for pre-65 retirees, who are not yet eligible for Medicare, will be $7,596 If you are 65 or older the cost is $3,840 for an individual and $7,848 to cover a retiree plus one dependent.

Reprinted with permission from RetiredBrains.com. Researched and written by Art Koff.