health care in retirement
TRANSCRIPT
New Era
Of
Retirement
Understanding Boomer Statistics
Rising Cost of Health Care
Understanding Medicare
Born 1946 to 1964
Over age of 65 will DOUBLE in next 40 years
$13 Trillion in Assets or 50% in overall assets
* Multigenerational Families*
The California Association of Health Plans
By 2017, health care spending is expected to reach $4.3
trillion and 19.5 percent of GDP.
Compare this to 1970, when spending was $75 billion
capita and 7.2 percent of the GDP.
What is Medicare?
A Federal health insurance program that pays for hospital
and medical care for elderly and certain disabled
Americans.
The program consists of two main parts for hospital and
medical insurance (Part A and Part B) and two additional
parts that provide flexibility and prescription drugs (Part
C and Part D).
Covers
Inpatient care in hospitals
Inpatient care in a skilled nursing facility
Hospice care services
Inpatient care in a Religious Non medical Health
Care Institution
*There is a deductible of $1,100 (2010)*
Helps cover medically-necessary services like doctors'
services, outpatient care, home health services, and other
medical services.
May cover some preventive services
Monthly premium $115.40 per month in 2011*
There is a $162 annual deductible along with a
20% Co-pay
Individuals who;
Earn $85,000 or less – Premium = $115.40
Earn $85,001 - $107,000 – Premium = $161.50
Earn $107,001 -$160,000 – Premium = $230.70
Earn $160,001- $214,000 – Premium = $299.90
Earn above $214,000 – Premium = $369.10
Couples who
Earn $170,000 or less - Premium = $115.40
Earn $170,001-$214,000 – Premium = $161.50
Earn $214,001-$320,000 – Premium = $230.70
Earn $320,001-$428,000 – Premium = $299.90
Earn above $428,000 – Premium = $369.10
Acupuncture.
Deductibles, coinsurance, or copayments when you get health care services.
Dental care and dentures (in most cases).
Cosmetic surgery.
Custodial care (help with bathing, dressing, using the bathroom and eating) at
home or in a nursing home.
Health care you get while traveling outside of the United States (except in
limited cases).
Hearing aids and hearing exams.
Orthopedic shoes.
Outpatient prescription drugs (with only a few exceptions).
Routine foot care (with only a few exceptions).
Routine eye care and most eyeglasses (exception for one pair of standard
frames after cataract surgery with an intraocular lens).
Routine or yearly physical exams.
Certain screening tests
Certain shots (vaccinations)
MediGap Policy fills in the gaps that A, B & D do not cover.
Coverage provided by private companies that are approved and
governed by Medicare.
Each Plan can charge different out of pocket costs
Each plan may have different rules for how you get services (like
whether you need a referral to see a specialist or in network).
These rules can change each year.
Annual subscription, fee based on what types of medications are covered and which
plan chosen.
Private insurers approved by Medicare cover different types of medications, plan
stays in effect for one year.
If no plan is available that covers medications needed that cost has to be covered by
paying out of pocket.
If the plan happens to drop a covered medication after policy is in effect that policy
is binding*
The average (weighted) monthly premium was $35.09 in 2009, which is an
increase from $29.89 in 2008*
Medical Expenses will affect almost everyone in
retirement, for the majority they will be the
largest expense they will have.
Social Security in a majority of plans will not
cover these costs.
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