3. Boomer Statistics Born 1946 to 1964 Over age of 65 will DOUBLE in next 40 years $13 Trillion in Assets or 50% in overall assets * Multigenerational Families*
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5. Rising Cost of Health Care The California Association of Health Plans By 2017, health care spending is expected to reach $4.3 trillion and 19.5 percent of GDP. Compare this to 1970, when spending was $75 billion capita and 7.2 percent of the GDP.
8. Medicare What is Medicare? A Federal health insurance program that pays for hospital and medical care for elderly and certain disabled Americans. The program consists of two main parts for hospital and medical insurance (Part A and Part B) and two additional parts that provide flexibility and prescription drugs (Part C and Part D).
9. Part A- Hospital Insurance (FREE*) Covers Inpatient care in hospitals Inpatient care in a skilled nursing facility Hospice care services Inpatient care in a Religious Non medical Health Care Institution *There is a deductible of $1,100 (2010)*
10. Part B - Medical Insurance Helps cover medically-necessary services like doctors' services, outpatient care, home health services, and other medical services. May cover some preventive services Monthly premium $115.40 per month in 2011* There is a $162 annual deductible along with a 20% Co-pay
12. What is NOT Covered by A & B Acupuncture. Deductibles, coinsurance, or copayments when you get health care services. Dental care and dentures (in most cases). Cosmetic surgery. Custodial care (help with bathing, dressing, using the bathroom and eating) at home or in a nursing home. Health care you get while traveling outside of the United States (except in limited cases).
13. NOT Covered cont. Hearing aids and hearing exams. Orthopedic shoes. Outpatient prescription drugs (with only a few exceptions). Routine foot care (with only a few exceptions). Routine eye care and most eyeglasses (exception for one pair of standard frames after cataract surgery with an intraocular lens). Routine or yearly physical exams. Certain screening tests Certain shots (vaccinations)
14. Part C – MediGap Plans MediGap Policy fills in the gaps that A, B & D do not cover. Coverage provided by private companies that are approved and governed by Medicare. Each Plan can charge different out of pocket costs Each plan may have different rules for how you get services (like whether you need a referral to see a specialist or in network). These rules can change each year.
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17. Part D – Prescription Drugs Annual subscription, fee based on what types of medications are covered and which plan chosen. Private insurers approved by Medicare cover different types of medications, plan stays in effect for one year. If no plan is available that covers medications needed that cost has to be covered by paying out of pocket. If the plan happens to drop a covered medication after policy is in effect that policy is binding* The average (weighted) monthly premium was $35.09 in 2009, which is an increase from $29.89 in 2008*
18. The Problem Medical Expenses will affect almost everyone in retirement, for the majority they will be the largest expense they will have. Social Security in a majority of plans will not cover these costs.
Our stagnant economy has created an unprecedented amount of co‐dependency among generations, andboomers not only have to take care of themselves, but their aging parents, unemployed children, and grandchildren as well. In fact, thenumber of multi‐generational households has almost doubled since 1970.
As this graph from the Pew Research Ctr shows, Baby Boomers are starting to feel more crowded as they age & their families age. These Baby Boomers find themselves not only caring for the children who have been forced back home due to the economy but also caring for the parents as they age
According to a report by the California Association of Health Plans, by2017, healthcare spending is expected to reach $4.3 trillion and 19.5percent of GDP. Compare this to 1970, when spending was $75 billioncapita and 7.2 percent of the GDP, and it is fair to assume that the costof health care will continue to escalate, impacting practically every facetof the American business landscape.
The problem is not just in retirement, as you can see there are families who are making the conscious decision to hold of care due to the cost
Part A: (Hospital Insurance) PremiumMost people do not pay a monthly Part A premium because they or a spouse has 40 or more quarters of Medicare-covered employment.The Part A premium is $254.00 per month for people having 30-39 quarters of Medicare-covered employment.The Part A premium is $461.00 per month for people who are not otherwise eligible for premium-free hospital insurance and have less than 30 quarters of Medicare-covered employment.
Premium can be higher based on taxable income levels. For individuals who earn $85,000 MAGI (Medicare/Social Security defined) their premiums will not be affected.
Note that Part D also has step ups in Premiums due to Income
There are options to get Medicare Advantage Plans but it should be noted that MediGap Plans are guaranteed only in the first 6 months of being 65. After that an individual can be rejected.Costs that MediGap covers can be extremely high if hopspitalization occurs for an extended period
Here are the basic coverages & plans for Supplemental Plan – Only F will give complete coverage, note that Dental, Vision, Hearing & Podiatry are still not covered.
Typical Plan & payment from Colonial Penn for New Hampshire – the National Average is roughly $175 a month that beneficiaries pay
*And the consumer now has to pay for that drug out of pocket*Premiums are projected to increase to $38.94 for 2010 as well.Note that there are increased premiums for Income Levels