{"id":290,"date":"2020-01-14T19:03:31","date_gmt":"2020-01-14T19:03:31","guid":{"rendered":"http:\/\/ladintax.com\/blog\/2020\/01\/14\/getting-a-fix-on-health-care\/"},"modified":"2020-01-14T19:03:31","modified_gmt":"2020-01-14T19:03:31","slug":"getting-a-fix-on-health-care","status":"publish","type":"post","link":"http:\/\/ladintax.com\/blog\/2020\/01\/14\/getting-a-fix-on-health-care\/","title":{"rendered":"Getting a Fix on Health Care"},"content":{"rendered":"
\n

If you\u2019ve been lucky enough to receive employer-subsidized
\nhealth insurance throughout your career, retirement may be a bit of an
\neye-opener. Many retirees expect Medicare to cover all their health care
\nexpenses, but it doesn\u2019t. You\u2019ll pay a premium for comparable coverage, plus
\nyou may have to contribute to deductibles and copays throughout the year. <\/p>\n

For the average 65-year-old male retiree, the combination of
\nMedicare premiums and out-of-pocket costs totals about $4,500 annually.1<\/sup>
\nRetirees also can expect extra expenses resulting from dental services (not
\ncovered by original Medicare), outpatient surgery, prescription drugs and home
\nhealth care in the latter stages of retirement.2<\/sup><\/p>\n

You must factor these types of expenses into your retirement
\nplan. If you\u2019d like to explore different avenues for earmarking retirement
\nfunds for health care, please give us a call.<\/p>\n

Health care was a big issue in the midterm election and, in
\nthe wake of little government intervention in the interim, it is likely to be a
\nkey topic in the 2020 presidential election. Interestingly, the bar has still
\nmoved in the wake of inaction. <\/p>\n

For example, during the 2016 campaign season, candidates
\njostled between \u201cfixing\u201d and eliminating the so-called \u201cObamacare\u201d legislation.
\nIn the 2018 midterms, sentiment shifted when voters realized that, with no
\nadequate replacement solution proposed, they did not want to lose the
\nprotections of the Affordable Care Act. Now, as another campaign season
\napproaches, there are calls for serious consideration of a universal government
\nprogram, dubbed \u201cMedicare For All.\u201d3<\/sup><\/p>\n

My, how things can change in the course of four years. According
\nto the Centers for Medicare & Medicaid Services (CMS), national health
\nspending is projected to grow at an average rate of 5.5% per year through 2027.4<\/sup>\n<\/p>\n

The reality of the situation has set in, and not just for
\npeople who buy their health care insurance on the exchanges. Monthly premiums,
\nannual deductibles and co-insurance have increased for workers who receive
\nemployer-based insurance plans as well. Large U.S. employers expect their costs
\nto provide worker health care plans will increase by 5% to 6% in 2020.5<\/sup>
\nWhile larger employers may be able to absorb those costs, small- and medium-sized
\nbusinesses are more likely to pass on those increases to their employees.<\/p>\n

In 2020, employer plans will feature individual deductibles
\nof at least $1,400 and family deductibles of at least $2,800, with a maximum out-of-pocket
\nexpense of $6,900 ($13,800 for a family) per year.6<\/sup> For some people,
\nthat\u2019s more than they pay out for a mortgage.<\/p>\n

It\u2019s safe to assume that health care plans will be carefully
\nscrutinized in the coming year.<\/p>\n

Content prepared by Kara Stefan
\nCommunications.<\/em><\/strong><\/p>\n

\u00ad1<\/sup> Dana Anspach. The Balance. Aug. 29, 2019. \u201cHow to
\nPlan for Health Care Costs in Retirement.\u201d https:\/\/www.thebalance.com\/how-to-plan-for-health-care-costs-in-retirement-2388478<\/a>. Accessed Dec. 5, 2019. <\/p>\n

2<\/sup> T. Rowe Price. Oct. 10, 2019. \u201cPlanning for Unexpected
\nHealth Care Costs in Retirement.\u201d https:\/\/www.troweprice.com\/personal-investing\/planning-and-research\/t-rowe-price-insights\/retirement-and-planning\/personal-finance\/planning-for-unexpected-health-care-costs-in-retirement.html<\/a>. Accessed Dec. 5, 2019. <\/p>\n

3<\/sup> Knowledge@Wharton. Nov. 12, 2019. \u201cMedicare for All:
\nWould It Work? And Who Would Pay?\u201d https:\/\/knowledge.wharton.upenn.edu\/article\/emanuel-medicare-for-all\/<\/a>. Accessed Dec. 5, 2019. <\/p>\n

4<\/sup> Centers for Medicare & Medicaid Services. Feb. 20,
\n2019. \u201cCMS Office of the Actuary Releases 2018-2027 Projections of National
\nHealth Expenditures.\u201d https:\/\/www.cms.gov\/newsroom\/press-releases\/cms-office-actuary-releases-2018-2027-projections-national-health-expenditures<\/a>. Accessed Dec. 5, 2019. <\/p>\n

5<\/sup> Stephen Miller. Society for Human Resource Management.
\nJune 25, 2019. \u201cEmployers\u2019 Health Costs Could Rise 6% in 2020.\u201d https:\/\/www.shrm.org\/resourcesandtools\/hr-topics\/benefits\/pages\/2020-large-employer-health-costs-expected-to-rise.aspx<\/a>. Accessed Dec. 5, 2019. <\/p>\n

6<\/sup> Rob Davidson. Grand Haven Tribune. Dec. 5, 2019. \u201cHidden
\nfigures: Health care costs keep adding up.\u201d https:\/\/www.grandhaventribune.com\/opinion\/columns\/hidden-figures-health-care-costs-keep-adding-up\/article_bd67b299-91ea-5419-8f5b-7867007d4bbd.html<\/a>. Accessed Dec. 5, 2019.<\/p>\n

We are an independent firm helping individuals create retirement
\nstrategies using a variety of insurance products to custom suit their needs and
\nobjectives. This material is intended to provide general information to help
\nyou understand basic retirement income strategies and should not be construed
\nas financial advice. <\/em><\/p>\n

The information contained in this material is believed to be reliable,
\nbut accuracy and completeness cannot be guaranteed; it is not intended to be
\nused as the sole basis for financial decisions. If you are unable to access any
\nof the news articles and sources through the links provided in this text,
\nplease contact us to request a copy of the desired reference.<\/em><\/p>\n

1043727B<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

If you\u2019ve been lucky enough to receive employer-subsidized health insurance throughout your career, retirement may be a bit of an eye-opener. Many retirees expect Medicare to cover all their health care expenses, but it doesn\u2019t. You\u2019ll pay a premium for comparable coverage, plus you may have to contribute to deductibles and copays throughout the year.…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_expiration-date-status":"","_expiration-date":0,"_expiration-date-type":"","_expiration-date-categories":[],"_expiration-date-options":[],"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/posts\/290"}],"collection":[{"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/comments?post=290"}],"version-history":[{"count":0,"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/posts\/290\/revisions"}],"wp:attachment":[{"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/media?parent=290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/categories?post=290"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/ladintax.com\/blog\/wp-json\/wp\/v2\/tags?post=290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}