Navigation Links
Health Insurance a Key Component in Financial Planning
Date:4/24/2008

Retirees' health care bills average $225,000

CHICAGO, April 24 /PRNewswire-USNewswire/ -- Many people think they understand how health care expenses will impact them but often grossly underestimate their future health care costs. Many also believe they will be able to rely on coverage from Medicare and their employers during their golden years. However, this may not be the case, as the number of businesses offering retiree health benefits is steadily declining and the financial pressure on Medicare seems to be increasing.

That's why Blue Cross and Blue Shield of Illinois (BCBSIL) is participating in the Federal Reserve Bank of Chicago's Money Smart Week April 20-26, an educational effort that teaches people ways to manage money wisely.

"By simply asking questions and being aware of your insurance options, you can have an impact on your financial health and better prepare for retirement and other life changes," said BCBSIL President Paul Boulis. "No doubt, people are aware of increasing health care costs and know their need for services will increase as they age, but many people don't plan ahead."

Recent statistics show that almost half of American workers report total savings and investments (not including their primary residences or any defined benefit plans) of less than $25,000, even though it's estimated that retirees will need approximately $225,000 to pay for health care alone. Consumers need to learn to more accurately estimate their medical expenses in retirement and to understand how to pay for them to protect their assets.

So how can people plan ahead for health care costs in a way that is both realistic and effective?

People can start by learning about the savings and insurance alternatives available. Options include:

-- Health Spending Accounts (HSAs): Many people use HSAs to pay short-term

health care expenses rather than as a savings vehicle. But HSAs also fit

within the broader scope of funding for care during retirement.

-- Long-term Care Insurance: According to a recent Employee Benefits

Research Institute study, only 32 percent of workers believe they will

not have enough money to cover health expenses and 44 percent believe

they will not be able to cover long-term care. Long-term care insurance

addresses this concern and helps protect retirement savings.

-- Medicare Supplements and Part D: The incremental cost of these products

is relatively small compared to the value they provide. For instance,

consumers can purchase Medicare Part D plans, some of which cost only

$30 per month. These plans cover up to $2,510 in initial drug costs and

also provide rich catastrophic benefits.

-- Annuities: Annuities may help people meet long-term retirement needs,

but many do not understand their potential and the role they play in

retirement planning.

To learn more about Money Smart Week, visit http://www.moneysmartweek.org.

With more than 7 million members, BCBSIL, a division of Health Care Service Corporation, a Mutual Legal Reserve Company, is the largest health insurer in Illinois. Started in 1936, BCBSIL is committed to promoting the health and wellness of its members and its communities through accessible, cost-effective, quality health care. BCBSIL is an independent licensee of the Blue Cross and Blue Shield Association.


'/>"/>
SOURCE Blue Cross and Blue Shield of Illinois
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Penn study finds pro-death proteins required to regulate healthy immune function
2. UCLA researchers identify markers that may predict diabetes in still-healthy people
3. Air pollution linked to cardiovascular risk indices in healthy young adults
4. More proof needed of safety and quality of electronic personal health records
5. Health care incentive model offers collaborative approach
6. Loneliness is bad for your health
7. Mailman School of Public Health study examines link between racial discrimination and substance use
8. Green Tea May Brew Up Healthier Skin
9. For Health Info, Women Often Turn to the Web
10. Record Number of Americans Lack Health Insurance
11. U.S. Research Funding Continues to Flatten as U.S. Health Costs Climb - in August 31 Science
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:4/29/2016)... ... April 29, 2016 , ... Natren, ... animal line of probiotics, Petbiotics ™, as they fondly call them. As ... rescue groups networking for their non-profit organizations. Animal rescues across the nation face ...
(Date:4/29/2016)... ... April 29, 2016 , ... ... billing and coding services, and Deyta Analytics, recently announced the recipients of the ... level of quality as measured from the caregiver’s point of view. The official ...
(Date:4/29/2016)... ... April 29, 2016 , ... Intellitec Solutions ... use of Microsoft Dynamics GP for one their long-term care clients. Working together ... Dynamics GP with key clinical management systems, and delivered a fully integrated accounting ...
(Date:4/29/2016)... ... April 29, 2016 , ... The Society ... year, reproductive endocrinologists are required to report in vitro fertilization (IVF) ... dedicated to the practice of assisted reproductive technologies in the United States. ...
(Date:4/29/2016)... ... April 29, 2016 , ... Yisrayl Hawkins, Pastor and Overseer at The House ... BC and AD, saying it is time to set the record straight. Traditionally, BC ... this simply cannot possibly be true and offers explanation. , “To start with, the ...
Breaking Medicine News(10 mins):
(Date:4/28/2016)... 28, 2016   Acsis , a leading provider ... IT market research and advisory firm IDC has named ... MarketScape: Worldwide Pharmaceutical Track and Trace Software 2016 Vendor ... an assessment of the capabilities and business strategies of ... market. Logo - http://photos.prnewswire.com/prnh/20160427/360791LOGO ...
(Date:4/28/2016)... PUNE, India , April 28, 2016 /PRNewswire/ ... - Pipeline Review, H1 2016" is a report ... pipeline and helps strengthen R&D pipelines by identifying ... best-in-class products. Company Profiles discussed in ... Menarini Industrie Farmaceutiche Riunite Srl, AbbVie Inc., Abiogen ...
(Date:4/27/2016)...   , ... le trimestre, soutenu par une croissance de +42% ... de +16% des ventes aux hôpitaux et cliniques  ... (Euronext : MKEA, FR0010609263 ; OTCQX : MKEAY), inventeur de Cellvizio®, ... chiffre d,affaires pour le premier trimestre clos au ...
Breaking Medicine Technology: