Fidelity Investments in Boston estimates that a person turning 65 needs $174,000 to cover much of what Medicare doesn’t cover. That factors in premiums for Medicare’s physician and prescription coverage, a supplemental health insurance policy, as well as other out of pocket deductibles and non-covered prescription costs. Long term care insurance and services are not included.
Baby boomers are also at risk. For those who are 55, the Employee Benefit Research Institute in Washington estimates that they will need to save between $151,000 and $550,000 for similar coverage – a range that depends on whether the individual lives to age 80 or 100. You can find information to figure out your health care needs and the costs at www.planforyourhealth.com.
The new HSAs (Health Savings Account) can help. They allow those who elect to purchase a high deductible health insurance to save up to several thousand dollars annually on a tax- free basis. Talk to your financial advisor to see if you qualify for one.
I was lucky to have very good health insurance coverage and I still have problems. Right after my accident, 11 months ago, my first four days in the hospital costs over $250,000, and the insurer still has not paid.