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Even when federally subsidized, quality medical care comes at a high cost. A recent study by the Employee Benefit Research Institute (EBRI) calculated the amount that seniors should save in order to afford their medical coverage, depending on their overall health and need for care, and the amounts of required savings were shocking. Read on to learn more about the lifelong costs of Medicare coverage, and speak with a long-term care and asset protection attorney for help.
The EBRI study was designed to help seniors predict how much they would need to save to cover their medical expenses through their retirement. Their conclusions were based on an assumption that the subject individual had turned 65 in 2016, and that they had purchased a Medigap plan. The costs of care included the cost of Medigap, Medicare Part B, and Medicare Part D premiums, as well as out-of-pocket costs for prescriptions or other medical needs.
The study found that, if a man with average drug expenses saved $72,000 for healthcare, he had a 50% chance of being able to cover all his medical bills. He would have a 90% chance if he saved $127,000. If that man’s drug expenses were in the 90th percentile, he would need to save $168,000 to have a 90% chance of affording his medical expenses. A woman with average drug costs would need to save $93,000 to have a 50% chance of affording her medical care, and $143,000 to have a 90% chance of affording her care. A married couple with drug costs in the 90th percentile would need to save $349,000 in order to have a 90% chance of affording all their medical costs.
It is for this reason that seniors must engage in careful, strategic long-term planning to ensure that they can afford the costs of their medical bills and end-of-life care expenses should they be fortunate enough to live to an advanced age. Many seniors benefit from the assistance of an experienced professional in planning for these costs. Estate planning and asset protection professionals can also help in exploring how seniors might become eligible for additional assistance from Medicaid in affording costly medical coverage. Consult with a knowledgeable Florida attorney about long-term care and asset protection planning.
For assistance with estate planning, asset protection, and other elder and special needs legal questions, contact the compassionate and effective West Palm Beach elder law attorneys at Shalloway & Shalloway for a consultation, at 561-686-6200.