If you’re preparing for retirement, you may be more than a little concerned about the cost of health care. You should be, since the cost of health care is rising at a much faster pace than overall inflation. Even with Medicare, which will kick in when you turn 65, you may experience burdensome out-of-pocket costs for premiums, co-pays, prescription medications, and certain equipment you might need. And since Medicare doesn’t pay much toward long-term care, you could really deplete your retirement savings if you have a major accident or illness.
A new app called Healthview Explorer draws data from over 50 million health care cases, and the app will calculate your projected health care costs in each state (assuming you retire at age 65).
The numbers are generated from Medicare Part B premiums, Medicare Part D premiums, and Supplemental Insurance premiums. The app does not consider surcharges for exceeding Modified Adjusted Gross Income thresholds.
Surprisingly, California did not make the list of the top ten most expensive states. But if you are considering a move to another state after you retire, it might be worth your time to investigate projected health care costs in that state. You might be surprised to learn that your out-of-pocket expenses can vary wildly depending upon location!
If you decide to check out the app, remember that projected costs are based upon a theoretical 65-year-old who retires today and lives until age 84. Your own health care expenses could vary depending upon a longer or shorter lifespan. And of course, changes in public policy, whether on the federal or state level, continue to impact everyone throughout their lives. The app does not offer any guarantees on your projected health care expenses, but it can be a powerful tool that helps you adequately plan for retirement.