The Kony Morton husband died last November. The reason: Complications of Parkinson’s disease, with which he had lived for 18 years.
“During that time, there were multiple medical costs that are not covered by Medicare,” said the resident in VA. “We have pushed what we can. Over the past nine years of his life, he could no longer work. He has become a deficiency for him, and we have survived social security and some help from his children.”
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An increasing number of retirees, such as Morton, is wrestling with health care debts due to medical bills. Medicare, which provides health insurance coverage for more than 66 million people, covers the lion’s share of the cost of medical care, but not all.
On average, the 65 -year -old, who left the workforce last year, may need $ 165,000 of savings to cover health care expenditures outside the pocket throughout the retirement period.
Earlier this year, Morton broke her ankle. She also added this to important hospital bills, “she said.
A mixture of medical bills that are not covered by Medicare for retired couple: about $ 90,000.
“I am now at a stage that I cannot keep in my house because the bills are very high,” said Morton. “I try to decide what I will do.”
One out of 10 people at the age of 65 or greater with health care debts owe $ 10,000 or more KFF study.
“This is a shocking number,” said Tricia Newman, Vice President of KFF. “Some of them are credit card debts, some are just debts debtor to the healthcare provider or hospital. Some are debts for other family members.”
Considering that half of all people in Medicare live on about $ 35,000 or less. “So it can be a $ 10,000 bill, or $ 10,000 of medical debts, unreasonable for people and have severe consequences.”
Bills that usually include routine health care services such as laboratory fees, diagnostic tests, dental care, doctor visits, and long -term care services that are not covered by Medicare, according to KFF. Medical care often requires patients to pay their pocket 20 % of the doctor’s bills.
She added: “Home care for people who cannot take care of themselves and they do not have family members who can drop everything to be there around the clock throughout the week,” she added. “It is a variety of health care expenses that can accumulate and lead to medical debts.”
One of the largest perpetrators Credit card debts It is medical costs outside the pocket. The amount that people borrow significantly increases with age. Half of adults 50 and above who report money to pay health care costs in the past 12 months, borrows about 3000 dollars or more, according to what is mentioned Wiping health care in West Gallup. On the other hand, the average amount was 750 dollars for adults between the ages of 30 and 49 dollars and $ 300 for adults between the ages of 18 and 29.
“People often have higher health care expenses with their age, for things like teeth, vision care, prescribed medicines, and doctors’ visits,” said Lori Troatky, AARP, chief financial manager and employment in Aarp.
She said: “In many cases, healthcare costs are often imposed on credit cards, which may lead to carrying this debt from month to month.”
This is a real problem. Anyone who rolled credit card balances fully realizes the debts that accumulate when you can only pay the minimum credit cards with interest rates of up to 20 %.
KFF found that anxiety, too, is that many people in Medicare say they or another member of their families have delayed, overlooked or asked for alternatives to health care or medical prescription due to costs.
“They were not very ready for a medical shock,” I learned.
One of the drivers is that the traditional Medicare and Medicare feature does not cover the cost of long -term care in the role of the elderly and living facilities.
The average price of the apartment was in an auxiliary facility with an aid with a help of $ 74148 per year in 2024, according to what it said National Investment Center for the elderly housing and care – The costs rise with the progress of the residents and need more care. Units for sheep patients can run more than $ 94,000.
“If these shocks are large enough, they can destroy the family’s money,” said Chen. “About 80 % of those between the ages of 65 years or more will require some long -term care, as it requires approximately 20 % high -density care for more than three years.”
Here are some moves that can help you manage your money and avoid medical debt.
A plan for healthcare expenses
It is important to make health care costs part of your budget and your possibilities are unexpected health care costs in Emergency FundCaroline McLanahhan, an accredited financial plan and a doctor, said.
Medicare to search online Discover plan Medicare.gov allows you to review the plan options. If you have a limited income, you may be eligible AdICARE assistanceWhich covers the installments of Part D and the discounts and costs of drugs.
Now, for free Individual consultations Available through government health insurance assistance programs.
McLanahhan said you are facing problems in providing your care, ask your doctor if anything is more effective, such as changing medications or going to other tests for the test.
She added: “Make sure to understand the reason for your doctor requesting tests and what you are planning to do information. Sometimes they ask for tests based on a” protocol “and it is not really needed.”
Consult a financial advisor
If you have a healthy shock, your financial advisor can help in a plan by reviewing your total assets, cash flow, liquidity, and where you can balance investments to free money to cover future bills.
Building a health savings account (HSA)
If you are retiring soon, greater HSA contributions It can be a smart step. HSA allows you to put money on a tax -exempt basis, and this money allows you to build a tax exempt, and allows it to get out of taxes for qualified health care expenses. (Some countries evaluate state taxes.)
In order to put money in HSA, you must be registered in a highly discount health plan. In these plans, they pay a fewer monthly installment than other types of health insurance plans, but they are discountable.
In January, and The Consumer Protection Office (CFPB) ended the base That the inclusion of medical bills is prohibited from credit reports used by lenders and prevent lenders from using medical information in their lending decisions
Both the three major credit offices – Equifax, Experian and Transunion – provide this free once a year. Check the accuracy and make sure it does not include the medical religion. If you see a mistake, call the credit office to report and remove it.
Review the medical bills to capture potential errors. (Getty Creative) ·Miniseries via Getty Images
Examine medical bills and negotiation if necessary
Request a list of a lines system from service providers. Errors occur. It may be possible to develop a low -interest payment plan with a hospital or medical provider. Credit cards exports may also reduce your interest rate if you have a good time for payments in time before the medical crisis.
Click on retirement accounts
If you are more than 59 years old, you can withdraw from your deferred accounts from the penalty -free tax, although you will pay a tax on the amount you withdraw.
For many people, this is a quick way to eliminate debts. However, it comes with a red light warning: using your retirement accounts to reduce debt depleted your retirement savings, and lacks returns on those invested dollars.
Work with a consultant
A non -profit credit consultant may also be able to negotiate with your credit card exporters if your medical debt is part of the credit card balance. The service fees will be paid. The Ministry of Justice website provides existing One of the approved credit advice agencies. One source to start: The National Credit Provincial Corporation
Bankruptcy
Nobody really wants to go there. But if there is no relief on the horizon for your medical debt, this may be like it. The bankruptcy lawyer can walk in detail with you.
In general, retirement accounts outside the table during bankruptcy under federal law. Retirement pensions, 401 (K) S, 403 (B) S, Sep-Jerus, qualified profit exchange plans exempt from creditors.
The traditional and individual individual retirement accounts that reach about $ 1.7 million are also protected. Social security payments are also exempt.
