Seniors Average $5700 OOP for Medical Bills

[somarco]

When RBC asked people how much they think they'll spend on health care at age 65, they said about $2,700 a year, on average. In reality, experts estimate at age 65, the annual spend on health care for a healthy couple is close to $5,700 per person ($11,400 for a married couple). "These are out of pocket costs," says Griffin Geisler, a wealth planning consultant with RBC Wealth Management–U.S.

The real cost of health care in retirement

Health care is a difficult conversation, but planning now can help take the sting out of medical bills.

www.rbcwealthmanagement.com

Seniors, and agents, need to look at BOTH sides of the ledger

 

[sman]

When RBC asked people how much they think they'll spend on health care at age 65, they said about $2,700 a year, on average. In reality, experts estimate at age 65, the annual spend on health care for a healthy couple is close to $5,700 per person ($11,400 for a married couple). "These are out of pocket costs," says Griffin Geisler, a wealth planning consultant with RBC Wealth Management–U.S.

The real cost of health care in retirement

Health care is a difficult conversation, but planning now can help take the sting out of medical bills.

www.rbcwealthmanagement.com

Seniors, and agents, need to look at BOTH sides of the ledger

I assume these numbers include Medicare Part B premiums and Med Supp premiums for those on a Med Supp. I will further assume it's also the copays and coinsurance amounts for those on MAPD and Medicare only. And of course prescription costs.

 

[BALDELMO]

And yet 40% of the population does not have $400 cash to handle an emergency expense.

 

[aheff]

If only these experts at RBC had a way that people could save for these future health expenses. And for retirement. And LTC. Perhaps an annuity?

 

[somarco]

I assume these numbers include Medicare Part B premiums and Med Supp premiums for those on a Med Supp. I will further assume it's also the copays and coinsurance amounts for those on MAPD and Medicare only. And of course prescription costs.

My reading makes me believe they are referring to "soft" OOP expenses over and above premiums for PDP, Part B, Medigap . . . but I could be wrong.


From the same article . . .
The report points out premiums, deductibles, co-pays and out-of-pocket costs are also climbing. Even when Medicare coverage is factored in, by age 75 health care expenditures will account for 15 percent of your overall spending, which is double what you would have spent during your working life.

Clearly, health care is expensive, so why aren't more people planning for those costs?

"Part of it is denial," says Geisler. "Healthy people don't want to think about what life will be like when they're older and not as healthy."


Link to the report . . .

https://www.rbcwealthmanagement.com/assets/wp-content/uploads/documents/insights/taking-control-of-health-care-in-retirement.pdf

Page 5 refers to OOP costs but does not specifically identify them.


Page 10 refers to paying OOP costs from your HSA.

Page 14 mentions "covering the gaps" , and specifically "large OOP unexpected expenses".

Page 15 refers to OM + Medigap for "folks who prefer low OOP cost"

 

[somarco]

And yet 40% of the population does not have $400 cash to handle an emergency expense.

So . . . how will they pay their "emergency" medical bills?

There is a real disconnect with some folks who are in denial about the real cost of health care. This is especially true with folks who have been relatively healthy so far in life.

The only way to minimize your OOP costs for health care is to die quickly . . .