A recent analysis done by HealthView Services Company has revealed that most of the retirees will have to spend a lot of money on health and insurance premiums. It also stated that old age leads to many health issues which can further increase the health expenses of a retired couple. The report projected that the healthcare costs would continue to rise in the future as well so retirees must save up for the retirement benefits accordingly.
How Many Dollars Spent on Health would shrink the Retirement Benefits?
The analysis done by HealthView, a leading provider of cutting-edge healthcare software and cost projection software has revealed that today if a couple is retiring; they will need about $288,400 in today’s dollars. It would be spent on Medicare Parts D and B along with the supplemental insurance (Plan F) premiums. The survey assumed that both the partners were 65 years of age.
Out of Pocket Expenses
The analysis also highlighted that there are several out of pocket expenses that need to be included. These expenses were related to dental health, vision health, and hearing health of the couple. When these factors were included, the cost of the same couple’s retirement health care bill was about $377,412.
Increasing Costs
The report also found out that the health care costs of retirees will increase further in the future. The factors that will push the costs are age, health care inflation, and the rising levels of cost shifting. The report was released on Wednesday and it was named as 2016 Retirement Health Care Costs Data Report.
Another Survey
Another similar survey conducted by Brightwork partners and The Empower Institute had revealed that more than half of Americans knew nothing about Medicare costs cutting down the retirement benefits. Just 12% people admitted that they were counting the costs of Medicare while planning for retirement. This survey was done on 4,000 Americans.
The Opinion
The CEO and founder of HealthView Services, Ron Mastrogiovanni expressed his opinion on the matter. He said that just a few Americans are taking some steps to have enough to pay up the medical expenses in retirement. He also added that most people do not even understand Medicare costs. The data they have presented shows that there is a significant impact of increasing health care costs and there is a need for planning for these expenses when you save up to get your retirement benefits.
