Benefits

Health Care Costs Climb for Retiring Couples

By Staff Report

Mar. 25, 2010

A 65-year-old couple retiring in 2010 without employer-provided retiree health insurance will need about $250,000 to pay future medical-related expenses, Fidelity Investments said in an analysis released Thursday, March 25.


This amount, up from $240,000 last year, includes expenses such as Medicare premiums, co-payments and deductibles. The higher tab for retiree health expenses comes as the number of employers offering such coverage shrinks, increasing the number of retirees who must pay a major portion of their health care expenses.


Significant drivers of increases in retiree health care costs include higher provider charges and increased expenses associated with new technology, Fidelity said in the analysis.


Of the $250,000 needed to cover a retired couple’s health care expenses, Fidelity estimates 30 percent will go toward paying Medicare Part B and Part D premiums; 40 percent will be consumed by expenses not covered by Medicare, such as co-insurance and deductibles imposed by Medicare; and 30 percent for out-of-pocket prescription drug expenses.


A summary of the analysis is available at http://personal.fidelity.com. 


Filed by Jerry Geisel of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.


 


Stay informed and connected. Get human resources news and HR features via Workforce Management’s Twitter feed or RSS feeds for mobile devices and news readers.


 

What’s New at Workforce.com?

blog workforce

Come see what we’re building in the world of predictive employee scheduling, superior labor insights and next-gen employee apps. We’re on a mission to automate workforce management for hourly employees and bring productivity, optimization and engagement to the frontline.

Book a call
See the software

Related Articles

workforce blog

Benefits

What is Earned Wage Access (EWA)? A Few Considerations

Summary Earned wage access (EWA) programs are an increasingly popular way for employees to access their...

benefits, earned wage access products, payroll, time and attendance

workforce blog

Benefits

EEOC says that employers legally can offer incentives to employees to get vaccinated in almost all instances

If you’re an employer looking to get as many of your employees vaccinated as possible, you can rest eas...

ADA, CDC, COVID-19, EEOC, GINA, pandemic, vaccinated

workforce blog

Benefits

Fixing some common misconceptions about HIPAA

Ever since the CDC amended its COVID-19 guidance to say that the fully vaccinated no longer need to wea...

COVID-19, health care, HIPAA, human resources, wellness