Simple way outs for retirees to manage high medical costs

Few months back, when Carl Stoces, a 70-year-old Monterey, Indiana, resident, fell off an extension ladder and suffered a massive leg injury, he was immediately airlifted to South Bend and admitted to Memorial hospital for treatment. It took him around two months to rehabilitate, and the bills accrued were so overwhelming that the payments would have never been manageable for Stoces’ fixed retirement income. Luckily, there was a sustainability program offered by the hospital called CarePayment, which allowed Stoces to finance his payments starting at $54. It offered Stoces absolute peace. He had no other option apart from this and for him, it was one of the greatest things that had ever happened in his life. Now he could pay his bills without any difficulty and it was beneficial for both the hospital and him. Unfortunately, you still have to pay off the bills - sooner or later and as per statistics, health care bills are those unwanted evils that mount up later in everyone’s lives. According to Bankrate.com, high medical expenses are the biggest financial concern in the lives of retirees like Stoces. Such a thing is even true for people earning more than $90,000 a year. Healthcare costs are one of the most difficult yet scathing expenses to endure during wee hours of retirement. These have the potential to engulf a considerable mass of a retiree’s income. Another concern that stalks retirees is that due to enhanced life expectancy, they might live longer but with a wretched one due to both financial and health related issues.

Get the Right Coverage

Getting the right insurance coverage might be the key. If you’re heading towards retirement, it is important for you to understand the insurance policy you’re currently having, the type of coverage it has to offer, and if there is any requirement of any supplement, and/or long-term care. However, American’s are failing, while planning for future medical expenses. According to a research conducted by National Foundation for Credit Counseling, most Americans don’t even have $1,000 kept for medical emergency purposes. Yet, some folks who are heading towards retirement are working with financial professionals to create a ‘miscellany’ strategy to deal with health care costs during retirement.

Health savings accounts

A few years back, while I was having some casual discussions with a client of mine, I found him to be worried as his company was downsizing parts of his division. As he was already 62 at that time and was nearing retirement, he was very anxious over whether or not he would be able to afford health care coverage from regular marketplace for his non-working spouse and himself. Both of them were in very good health at that time, however, he wanted to protect his retirement savings until he could apply for Medicare at the age of 65. After doing some research, he and his spouse came up with a feasible solution. He would simply opt for a high-deductible health care plan through his office so that at the same time he could enroll for a health savings account. This was undoubtedly a smart approach as the HSA provides for tax benefits. For worried seniors just like my client, there is always options like supplemental and long-term care insurance. Perhaps, you won’t believe but there is always something for everyone that cost very little and offer you the very respite you need.