Some pay particularly high healthcare costs in retirement, report says

Some pay particularly high healthcare costs in retirement, report says

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A report has warned that retirees could face higher healthcare costs than they expected, especially if they suffer from a chronic illness.

The Center for Retirement Research said that in 2018, the latest year for which the data it needed was available, the median — the point at which half is above and half is below — for fees pensioners’ medical expenses was $4,311, including the cost of premiums and out-of-pocket expenses for expenses not covered by their insurance.

However, an examination of total spending showed that those above the median spent more above the median amount than those below the median saved. For those in the 25th percentile, the figure was $2,598, only about $1,700 below the median, but for those in the 75th percentile, it was $6,403, about $2,100 above.

And for those at the 90th percentile of spending, meaning they spent more than 90% of the others, it was $9,638 and for those at the 95th percentile, it was $10,947. This difference was “mainly due to expenses for cost-sharing and uncovered services”, he said, adding that the comparison did not take into account expenses for long-term care.

The report found little difference by gender, indicating that on average women pay slightly lower premiums than men, but their out-of-pocket expenses are slightly higher. There is also not much difference by health status, except that expenditures are significantly higher for those with a chronic condition.

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