Retired Brains
The High Cost of Health Care
 
Retirees and seniors thinking about retiring must plan for health-care costs,or they will likely find themselves facing financial problems. As one gets older health care becomes more expensive. A study by the Institute for the Future found that seven in ten Medicare beneficiaries have two or more chronic ailments and that roughly half of Americans now turning 65 will at some point spend time in a nursing home, with one in ten staying three years or longer.
 
A 2009 Consumer Expenditure Survey showed that Americans 65 and older spent on the avage of $5106 per year on health care expenses (insurance, prescription drugs, medical supplies and medical services) in 2009.
 
A 65 year old couple that retire in 2010 would need about $270,000 to pay for health care expenses during the  combined remainder of their lifetimes and substantially more if they need the services of a nursing home or home health care according to Fidelity Investments.
 
A Towers Perrin Survey shows that pre-65 retirees who are not yet eligible for Medicare spent an average of $7596 on health care in 2009.
How do you Pay for Health Insurance

When you are no longer working and are not as yet 65?

If you have lost your job you may be entitled to keep your coverage for up to 18 months, depending on the size of your prior employer. This program is called COBRA.

The cost of an employer-provided health insurance plan is usually very expensive. The annual premium for an individual policy in 2008 was $4,704, according to the Kaiser/HRET survey. A family plan was $12,680.

In most employer plans the employer pays a portion of the annual premium. You probably do not even know how much your employer actually paid. Once you are no longer with the company and make the decision to use COBRA you will have to pay the entire premium. Although this is not cheap it is still a great deal less than purchasing insurance with similar coverage on your own.

If you COBRA you must sign up to extend your health care coverage within 60 days of becoming unemployed.

Cut Your Auto Insurance Bill Almost in Half

1. Consider getting rid of your collision and comprehensive coverage on your older car.

2. Raising your deductible to $1000 could cut your premium by as much as 40%.

3. If you have a teen on your policy consider buying a separate policy for him/her.

 

 

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