Tag Archives: medicare

New goal for boomers: Making it over the hump — to Medicare

More and more Americans aged 50+ have a new objective in mind when it comes to healthcare — just make it over the hump baby!

“Over the hump” means making it to Medicare — relatively unscathed.

Health plan premiums increase as you get older, and the oldest group consists of those folks aged 60 to 64, just prior to reaching Medicare age (65). Their health plan premiums are outrageous!

The next most outrageous group is age 55 to 59, and so on. The real slap in the face tends to hit somewhere around age 55 for most people. At that point, the cost can become too much to handle, forcing many people to start thinking in different terms.

Oh, like a health savings account plan?

Precisely.

Here is an article from the Dallas Morning News that does homage to the problem.
Scary costs for those approaching Medicare

COMMENT:
Once you hit Medicare age, health plan premiums revert to a level not seen since your 30’s, relatively speaking.

For this reason, we have advocated the “make it over the hump” approach for years. Today, it makes more sense than ever. Forget about the frills. Just make it over the hump.

Get a health savings account plan with a high deductible health insurance policy and stash away as much cash as possible to make those golden years truly golden.

Boomers — Beware

The LA Times reports that there may not be enough health care to go around for America’s aging baby boomers. The system is “woefully unprepared” to handle the titanic influx of boomers over the next couple of decades.

Story here (subscription may be required):

http://www.latimes.com/features/health/medicine/la-na-health15apr15,1,1627164.story

COMMENT:
Is there anything “new” about this “news”? America is woefully unprepared for the influx of boomers in many regards, not just healthcare, although the lack of qualified workers in healthcare may be especially poignant, given boomers’ typical love of life.

One thing we urge our clients to consider is their impending retirement. Although contributions are not allowed into a health savings account past age 65, the account can still be tapped on a tax-free basis for medical expenses at any age. No question about it–those who start an HSA with many years to go until retirement and fully fund that account religiously will have more than enough cash to cover expenses that Medicare leaves on the table (which is expected to continue to increase).