Retirement planning for your healthcare is one of the most important things you can do before and after you turn 65. Here’s a list of important things to plan for once you are Medicare-eligible.
Advance Directives: Power of Attorney
An advance directive is a durable power of attorney. It’s a document that names someone you trust to make health decisions if you can’t. You can obtain an advance directive through your attorney, health provider, local aging agencies, or state health department. The following are events in which an advance directive would be useful:
- Dialysis and breathing machines
- Resuscitation if you stop breathing or if your heart stops
- Tube feeding
- Organ or tissue donation after you die
Make sure to carry a copy in your wallet, and give a copy to your attorney, healthcare provider, family, and friends.
Long Term Care
Long Term Care is not covered by Original Medicare, this important to note since the CMS website says that 70% of all people 65 and over will require some form of Long Term Care. LTC is considered custodial care which includes bathing, housework, caring for a pet, eating, and long term nursing. Here are some things to consider when planning for your healthcare retirement:
- 80% of assistance is from unpaid family and friends
- Long Term Care insurance is available -but it can very expensive and limited.
- Designate a care facility before it is necessary
- Talk with family, friends, and healthcare providers about potential future needs
Medicare Health Plans
Medicare Part A and B cover the basics but it still leaves gaps in coverage such as limited hospitalization stays, deductibles, coinsurance, and copays, with no ceiling on how much you can pay out of pocket each year. There are several options to help limit your financial burden:
- VA Benefits with Medicare
- Medicaid help with Medicare
- Retirement benefits
- Railroad benefits
- Job-based insurance
- Medicare Supplement insurance
- Medicare Advantage plans
- Prescription drug coverage
All of the above can limit your out-of-pocket expenses, however most do not cover Long Term Care. If you are not eligible for the first five you may want to look into Medigap and Medicare Advantage to decide if one is right for you, as well as looking into Medicare Part D drug coverage.
For further questions about planning for your healthcare during retirement call the number above.