As healthcare costs continue to rise and have become unaffordable to many seniors. Moreover, many seniors are already finding themselves unable to afford healthcare. More seniors will not be able to afford healthcare if the prices keep skyrocketing in the future. How do seniors handle the continuing rising cost of healthcare while still getting the care they need?
How to Get Healthcare Despite Rising Costs
The following are some tips to help seniors cope with the rising cost of healthcare while not going without coverage they desperately need:
1. Understand the Healthcare Inflation Rate
Healthcare costs are inflating about 4% each year. This is about double the normal inflation of about 2% in other markets. Plan for this inflation when you are planning for your retirement if you are in the "Twilight" years of your career (which many baby boomers are) now.
2. Use the Consumer Price Index for the Elderly as a Guide
The Consumer Price for the Elderly can help people determine how much to budget for health care in their older years. Right now the recommendation is that healthcare costs will be about 10% of what seniors are spending in total, and that could rise by another 8% in the next 25 years. This would mean there would be a total of 18% of a senior's budget spent on healthcare. Planning now can help avoid problems later.
3. Investing in High-Dividend Stocks
Investing in high-dividend stock that earns more than the 4% healthcare inflation rate can help seniors afford the rising costs of healthcare. Talk to your financial advisor about more options for stocks that can help you pay for the rising cost of health care seniors you know can invest their money into to ensure that they get a return that allows them to get the healthcare they need as they grow older and likely face more health concerns than before. *However, have a backup plan because stocks can fall sharply.
4. AVOID Stock-Adjusted Bonds as an Investment Option
Avoid these stock-adjusted bonds as they adjust their rates on a fixed schedule and you may lose money on the investment if the interest rates plunge. This will leave the individual unable to continue paying for health care at the rate that it is continuing to increase at (4%).
5. Invest in an Annuity with Healthcare Rider
Some annuities don't require an individual to have a medical exam to be able to invest in the annuity. Some of these annuities will contain riders that help pay for healthcare. These can be a great investment to seniors who are going to have to endure the rising costs of healthcare in the future, making these a worthwhile investment for one's future.
6. Plan For Increasing Medical Costs
Ultimately, younger "Baby Boomers" and people who are still working can continue to save for increased healthcare expenses moving forward. Assume a 5%+ inflation rate to healthcare costs to be on the prepared side. Moreover, assume increasing costs in healthcare as you get older. Prepare for the worst while hoping for the best.
To learn specifically about the costs you might incur from home care, refer to our guide: Home Care Pay Options. Access our free content library by first locating the Caring office near you.