Skip to content

Health Insurance Costs In Retirement Question & Answers

2015 November 5
by Sarah Fields

Maria asks…

Retirement, health care, & bankruptcy how does it work?

I heard you have to go bankrupt before the government helps your medical bill after retirement. In the first place, if you have health insurance, wouldn’t it cover your medical cost? (on average how much of the cost they would cover?) Secondly, what kind of income would you have earned that you cannot pay your part of the medical bill?

What is your advice for a younger person who wants to avoid bankruptcy and wants to maintain good health and some money at retirement.

Thanks in advance

Sarah Fields answers:

As a young person you need to save for retirement. At 65 you will get medicare and you can buy a policy to cover the shortfall in benefits. If you run out of money in your old age and need Medicaid to pay for a nursing home you need to spend all your money before you can get the government assistance. The final years can get very expensive and people can run out of money to pay for nursing homes and assisted living but you can’t just give away your assets then expect the government to pay your expenses.
My mom is 82 and living with my brother she gets a payment on a house she just sold and her pension and SS but if she needed a nursing home that cost say 6K a month she would only have enough to last about 15 years then would have to go on Medicaid. Her mom was almost 99 when she was in assisted living and only had enough left for less than a year when she died. The more you save the better chance of not having to go on government assistance.

George asks…

What are some costs of pregnancy?

As my husband and I look forward to pregnancy (we are planning to try and conceive soon) :), we are trying to be completely prepared. We know how much on my health insurance a deliver is, and how much for after the baby.

But what about for the 9-10 months that you are pregnant? What are some common costs?

Sarah Fields answers:

I think the fact that you are trying to financially prepare for your future children is very noble and very futile.
The 9 months of pregnancy aren’t bad aside from co-pays and extra ice cream ;) — here’s the thing about kids: They’re unpredictable from GO they are unpredictable. You never know when they’re going to shove a GI Joe up their nose or fall and split their chin open… That is the stuff that gets expensive. Ballet lessons you can plan for, soccer camp– no problem.
Pregnancy can be unpredictable also. I would say make a little “what if” account for yourselves. Like what if my back is killing me the last three months of the pregnancy and I need prenatal massages? Or what if my feet swell to the size of two Caribbean islands and I need three pairs of new shoes….

Then just keep it up for after their born. Seriously as a mother of two BOYS I will tell you, aside from retirement it’s the smartest money my husband and I have ever saved.

Richard asks…

Retirement, health care, & bankruptcy how does it work?

I heard you have to go bankrupt before the government helps your medical bill after retirement. In the first place, if you have health insurance, wouldn’t it cover your medical cost? (on average how much of the cost they would cover?) Secondly, what kind of income would you have earned that you cannot pay your part of the medical bill?

What is your advice for a younger person who wants to avoid bankruptcy and wants to maintain good health and some money at retirement.

Thanks in advance

Sarah Fields answers:

I’ll give you some guesses but you can get complete info from
Medicare. For people over 65 Medicare usually pays 80% of
doctor and hospital bills that they approve.
A hospital might bill fifty thousand dollars for a procedure.
Medicare might approve 26% of that amount and pay 80%
of that figure.

The system doesn’t work so well for younger people. You have got to have insurance or be very lucky with great health. A few years ago
it was possible to buy a “Major Medical Policy” which only
covered accident or sickness expenses over a certain figure.
Like the deduct able on your auto collision coverage. I don’t
know if anyone still sells that kind of policy.

Powered by Yahoo! Answers

Leave a Reply

Note: You may use basic HTML in your comments. Your email address will not be published.

Subscribe to this comment feed via RSS