How do you know healthcare costs are killing us financially and physically? Even the rich are in a panic.
Three-fourths of wealthy Americans are afraid of how much healthcare will cost them in retirement, says a study from insurance and financial service company Nationwide.
It polled 1,000 “affluent” Americans over the age of 50 — affluent meaning they earn $150,000 a year or more. As healthcare costs soar, these Americans are becoming more reliant on federal programs to help pay them. But they don’t fully understand how they work.
They need the money but don’t how it works
Eighty-six percent are enrolled or plan to enroll in Medicare. Yet, 72 percent wish they better understood how the program works. Here are some of the concepts they have yet to wrap their heads around…
- You can’t enroll at any time: 23 percent
- It doesn’t cost the same for everyone: 29 percent
- Future changes to Medicare will impact their ability to sign up for it: 62 percent
“With changes coming to Medicare, premiums will increase for high-income retirees,” says Nationwide executive John Carter, “making it even more important for future retirees to understand the details and incorporate the program as part of a comprehensive retirement plan.”
Two-fifths (42 percent) admit they would give all of their money to their children so they could be eligible for Medicaid-funded long-term care.
Americans earning over $75,000 a year are more concerned about affording healthcare costs than those earning $30,000, according to a 2015 Bankrate study. This is probably because most wealthy people aren’t typically eligible for Medicaid.
Originally published at www.debt.com on August 24, 2018.