Do you have a plan for what will cover your medical bills if you have an advanced condition? Your health insurance might not cover the full scope of your bills. If you need more advanced care like a room in a nursing home, you could find yourself having to make difficult decisions over your personal savings.
If you are approaching retirement and don’t have a plan in place, you need to carefully consider the possible impact of health care costs. A recent study found that more than two-thirds of people who plan to retire in the next 10 years have no idea what their long-term care or health care costs will be in retirement.
Some people don’t worry much at all about these costs under the mistaken impression that Medicare will pick up the tab. There are many medical expenses that will get covered by Medicare, but it also has its own costs. Furthermore, there are plenty of things that Medicare does not pay for, including staying in a nursing home.
The annual out of pocket for traditional medical expenses, even with Medicare, can be between $4500 and $6500 per year. Medicaid pays very few expenses associated with long-term care, including stays in a nursing home that can cost upwards of $100,000 per year for a private room.
Health care expenses must be incorporated into your overall strategy for retirement and estate planning. Given the increasing longevity for many people in the United States, it is crucial that these aspects of your estate plan be discussed with your lawyer. At our Pasadena estate planning law office, we can help guide you through the process of getting the support you need to create a long-term care plan.