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Navigating Health Care Costs

Navigating Health Care Costs

January 18, 2024

Navigating the complexities of retirement planning involves addressing critical factors beyond market performance. Three potential pitfalls include:

  • Taxes
  • Inflation
  • Health Care Costs.

In this article, the focus is on healthcare expenses, a significant factor that, if unplanned, can have a devastating impact on the assets you have acquired throughout your lifetime.

Healthcare costs can be broadly categorized into two types: Acute and Chronic.

Acute conditions are typically managed through doctor visits and prescriptions covered by Medicare and supplemental policy insurance with deductibles and copays.

On the other hand, Chronic conditions pose a different challenge, as Medicare or Medicaid offer limited coverage, often quickly exhausted. 

Extended stays in nursing homes or assisted living facilities are generally not covered and Medicaid assistance only becomes available after depleting almost all assets.

Over the past two decades, chronic care costs have outpaced inflation, showing no signs of slowing down.

Shockingly, a mere 3-4% of Americans aged 50 and above invest in long-term care policies, according to a 2019 U.S. Department of Health and Human Services study. 

This contrasts starkly with federal estimates suggesting that 70% of individuals aged 65 and older will require critical services before their passing (Source: New York Times, 11/22/23, "Dying Broke: The coverage gap").

I am here to be a valuable resource, offering a free consultation to help you navigate this potential risk. I can provide a long-term care buyers guide (from the government), obtain quotes from two different insurers, and engage in a no-obligation discussion via email or phone. Take the first step in securing your financial future—call me at 732-847-4324 today!