Why is health care so expensive for retirees?

Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Many people think that their cost of living will go down to retirement, but many seniors actually find that their living expenses remain essentially the same ascend. & nbsp; Although this trend is due to a variety of reasons, the ever-growing cost of health care is a determining factor. "Data-reactid =" 11 "> Many people think that their cost of living will drop considerably in retirement, their living expenses remain largely the same, or even increase, while the costs of health care, which constantly increase, contribute to a large extent.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The healthy couple aged 65 who takes his Retirement This year, retirement health spending is expected to rise to $ 387,644, according to new estimates by HealthView Services, a provider of cost projection software. It may seem like a ridiculous amount of money, but when you think about the medical costs that most seniors face, and the fact that seniors live longer, it starts to make sense. "Data-reactid =" 12 "> Average Health A 65-year-old who is retiring this year is expected to spend a whopping $ 387,644 on health care in retirement, according to new estimates from HealthView Services, a Providing software cost projection.This might seem like a ridiculous sum, With regard to the medical expenses of most seniors and the fact that they live longer, it starts to make sense.

Here are some reasons pensioners are forced to spend so much money on health care.

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SOURCE OF IMAGE: GETTY IMAGES.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "1. Medicare is not free"data-reactid =" 26 ">1. Medicare is not free

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Some people apply to Medicare thinking that it's is free, only to be shocked to learn that they are responsible for premium costs. To be clear, Part A of Medicare, which covers hospital visits, is free for most registrants, but Parts B and D, which cover doctor visits and prescriptions, charge a premium. . The standard Medicare Part B premium this year is $ 135.50 and is paid monthly. Part D premiums vary depending on the plan chosen. "Data-reactid =" 27 "> Some people ask to benefit from Medicare thinking it's free, but they are shocked to learn that they are responsible for the costs Medicare Part A, which covers hospital visits, is free for most registrants, but parts B and D, which cover doctor's visits and prescriptions, charge a premium. Medicare Part B is this year $ 135.50 and Part D premiums, meanwhile, vary depending on the plan chosen.

In addition to premium costs for Medicare, you also need to worry about deductibles, co-insurance and copays. For example, seniors who join Medicare often end up with more bills than they originally negotiated.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "2. Medicare does not cover everything"data-reactid =" 29 ">2. Medicare does not cover everything

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Although Medicare covers a wide range of healthcare services health, there are several key areas he will not pay for. For example, Medicare does not cover dental services, hearing aids, or vision services (although will "data-reactid =" 30 "> While Medicare covers a wide range of health care services, there are several key areas for which it will not pay.For example, Medicare will not pay for, does not cover dental services, hearing aids or vision services will pay to screen for and treat certain eye diseases, such as glaucoma).

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "3. Supplemental insurance also costs money"data-reactid =" 31 ">3. Supplemental insurance also costs money

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Many seniors who subscribe to Medicare end up buying insurance complementary, also called Medigap, to pay a portion of their health care costs not covered by Medicare. The cost of Medigap varies depending on the extent of coverage, but the higher the premiums, the better the benefits, and vice versa. In addition, although Medigap helps to pay costs such as copayments and deductibles, it habit choose from routine care for dental care, eye care and hearing care. "Data-reactid =" 32 "> Many older people who join Medicare end up taking out supplemental insurance, also called Medigap, to cover a portion of the costs of their care. The cost of Medigap varies according to the number of people in the family. range of coverage, but the higher the premiums, the better the benefits, and vice versa, and while Medigap helps pay for costs such as co-payments and deductibles, habit pick up the tab for dental services, vision and hearing routine.

<h2 class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Saving for health care in retirement"data-reactid =" 33 ">Saving for health care in retirement

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Because retirees pay a fee for health care It is crucial to save well in advance for this expense, and a good way to do this is to health savings account, or HSA. An HSA account is a hybrid savings and investment account. "Data-reactid =" 34 "> Retirees paying a fee for health care expenses, so it is essential to save these fees long in advance. Savings account, or HSA An HSA is a hybrid savings and investment account.

Those with a high deductible health insurance plan (defined as a deductible of $ 1,350 for individual coverage or $ 2,700 for family coverage) can contribute funds that are then invested for additional growth. HSA withdrawals can be taken at any time to cover eligible medical expenses, but the goal of an HSA is actually to transfer funds from year to year to benefit from the growth of this investment.

HSA participants today can contribute up to $ 3,500 a year as individuals, or up to $ 7,000 a year at the family level. People aged 55 and over can earn an additional $ 1,000 as a catch-up and employers can contribute to HSAs on behalf of their employees. Best of all, HSA's contributions are made with tax-free dollars, and these funds are then generated net of taxes and withdrawn net of taxes, provided they are used for eligible medical expenses.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Of course, not everyone has a franchise health insurance, funding for an HSA is therefore not always a priority, but since health care in retirement is extremely expensive, those who make "data-reactid =" 37 "> Of course, not everyone has a very deductible health insurance plan, so the financing of an HSA is not always on the table, retirement is extremely expensive, those who make having the option would be wise to consider.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " More from The Motley Fool "data-reactid =" 38 "> More from The Motley Fool

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The Motley Fool has a disclosure policy."data-reactid =" 46 ">Motley Fool has a disclosure policy.