Medical truth no.1: Medicaid will not cover everything
There are a lot of hard truths that deal with the medical side that many people don’t give the time of day, mostly because they end up being healthy and having no such problems. Yet, this is still something that can come as a huge surprise and deplete your funds way faster than you would expect.
Since universal healthcare isn’t guaranteed, we are fortunate to have access to Medicare. And while a lot of us who are healthy as a mule don’t think about it, this service will not end up covering everything you may need during your retirement years. It’s not something we like to think about, but the truth of the matter is that health deteriorates with age, and we all have different needs, some of which aren’t covered by Medicaid.
Things such as hearing, vision, or dental issues aren’t covered, along with long-term care, even in a nursing or assisted living facility. This will put you at risk of having to pay huge deductibles and co-pays, which is why we suggest you plan for health-related expenses when you are putting money aside for retirement. Whether it’s saving a bit extra every month or signing up for a supplemental insurance plan, you should start thinking about this potential issue today.
3 Responses
A lot of truths were spot on. Disappointed to see that there was no mention of Medicare Advantage Plans available from numerous major insurance companies that will pay a lot more than straight Original Medicare. Copay’s are modest and mostly all costs are fully paid when you hit the maximum out of pocket level. There is also the Gap coverage option. This is important info that should have been included.
My spouse and I waited until age 70 to start collecting social security which has made a big difference for our long term plans. The 8% increase per year for the four years after our age 66 regular retirement age gives us 32% more.
We have a moderate LTC plan which has a reasonable rate which will help IF we need it later in life.
This article does not address the federal taxes you will have to pay on those benefits based on ridiculous levels of income that have not been adjusted for years.