Every article or book I have read about retirement planning mentions the two financial wild cards - health care and long term care costs. Both have been known to bankrupt retirees and younger folks as well. We aren't retired yet but do see the expense and unpredictability of health care costs in our own lives.
First up are my teeth. I have been paying off the braces I've had for 2+ years and will have my last payment this month. Lest you think this was a cost driven by vanity, having had braces as a teenager I had no desire to go through that again until I was told it was braces or I could count on having at least 2 teeth pulled in the near future and then would need something (implants, a bridge, etc.) to replace them. Since my teeth are healthy, I chose braces. Of course in the last few months one of those healthy teeth with an old filling has broken and I now need a crown which was not budgeted for.
Then there are my eyes. I was trying to hold off on cataract surgery until I had Medicare on top of employer health insurance. Less than 1 1/2 years to go for that but I am having great trouble driving safely under a number of conditions so I have the first cataract surgery this coming Monday. Yesterday I got a phone call telling me my copay would be at least $2800. When both eyes have been operated on and recovered I will need an eye exam and new glasses as well.
We are very fortunate; we can afford this. However because the broken tooth and eye surgery were not planned/expected for 2013 we did not max out our health savings account which allows us to pay for health care expenses with non-taxable dollars and thereby reduces the cost.
I dread to even imagine what our health care costs may run the rest of our lives as we develop more health problems. We both have had major health scares plus some necessary surgeries in the past 10 years that were very costly even with good insurance.
We do what we can by eating healthy food, exercising, managing stress, etc. Still it feels like a roll of the dice and all we can do is continue to try to increase our savings so we have the funds to pay for whatever turns up.
How are you handling the unpredictability of health care costs? Do you have a separated savings account for this purpose?
For us, anything healthcare related comes out if our slush fund. Lucky for us *most* of our dental & medical costs are reimbursed by my husbands insurance through his employer.
ReplyDeleteWe are fortunate that way too but when the total cost of the eye surgery is $12,000 plus then our deductable and 15% copay add up quickly. Our routine dental care insurance is almost non-existent as is routine eye exams and glasses but things like cataract surgery and crowns are covered a bit better.
ReplyDeleteHi Juhli! The unpredictability of health care costs really affects everyone no matter their age. While having a health card and insurance can help alleviate it, there are some situations that those two can't cover. And the solution I've been using so far is solid financial planning. In other words, putting aside emergency savings on top of actual savings.
ReplyDelete-Brooke
How true. We do the same thing and have and continue to save as much as we can. I truly think these expenses are the wild card that can sink the financial ship though and it is impossible to know what your expenses will be for the rest of your life.
DeleteThankful to be in Canada where the major costs are covered. The US is quite unique in its health care approach.
ReplyDelete"Unique" is certainly the polite way to describe the US approach to paying for health care LOL. I have strong feelings about people's health being a for profit business but since I'm not queen of the universe we have to do the best with what we have.
DeleteI'm going to need to have my bridge repaired along with some dental work and I have minimal dental insurance-life will be interesting!
ReplyDeleteSounds like you are in the same boat we are when it comes to dental insurance. It is weird that teeth and eyes aren't covered by health insurance.
DeleteIt sounds as if we are fortunate to be living in Europe! Because I am over 60 and a UK state pensioner, any medical treatment that I need in Spain is covered under a EU agreement. Dental treatment isn't covered, though I believe that pensioners can get a discount. I will find out when I pluck up the courage to go to the dentist! I had my eyes tested and bought new glasses the last time I was in London, as it was marginally cheaper than going to an optician's in Spain and slightly easier (as I'm far from fluent in Spanish!)
ReplyDeleteOh how I envy Europeans and Canadians! Our health payment system makes absolutely no sense economically except for the insurance companies who profit.
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