New Era

Of

Retirement

Understanding Boomer Statistics

Rising Cost of Health Care

Understanding Medicare

Born 1946 to 1964

Over age of 65 will DOUBLE in next 40 years

$13 Trillion in Assets or 50% in overall assets

* Multigenerational Families*

The California Association of Health Plans

By 2017, health care spending is expected to reach $4.3

trillion and 19.5 percent of GDP.

Compare this to 1970, when spending was $75 billion

capita and 7.2 percent of the GDP.

What is Medicare?

A Federal health insurance program that pays for hospital

and medical care for elderly and certain disabled

Americans.

The program consists of two main parts for hospital and

medical insurance (Part A and Part B) and two additional

parts that provide flexibility and prescription drugs (Part

C and Part D).

Covers

Inpatient care in hospitals

Inpatient care in a skilled nursing facility

Hospice care services

Inpatient care in a Religious Non medical Health

Care Institution

*There is a deductible of $1,100 (2010)*

Helps cover medically-necessary services like doctors'

services, outpatient care, home health services, and other

medical services.

May cover some preventive services

Monthly premium $115.40 per month in 2011*

There is a $162 annual deductible along with a

20% Co-pay

Individuals who;

Earn $85,000 or less – Premium = $115.40

Earn $85,001 - $107,000 – Premium = $161.50

Earn $107,001 -$160,000 – Premium = $230.70

Earn $160,001- $214,000 – Premium = $299.90

Earn above $214,000 – Premium = $369.10

Couples who

Earn $170,000 or less - Premium = $115.40

Earn $170,001-$214,000 – Premium = $161.50

Earn $214,001-$320,000 – Premium = $230.70

Earn $320,001-$428,000 – Premium = $299.90

Earn above $428,000 – Premium = $369.10

Acupuncture.

Deductibles, coinsurance, or copayments when you get health care services.

Dental care and dentures (in most cases).

Cosmetic surgery.

Custodial care (help with bathing, dressing, using the bathroom and eating) at

home or in a nursing home.

Health care you get while traveling outside of the United States (except in

limited cases).

Hearing aids and hearing exams.

Orthopedic shoes.

Outpatient prescription drugs (with only a few exceptions).

Routine foot care (with only a few exceptions).

Routine eye care and most eyeglasses (exception for one pair of standard

frames after cataract surgery with an intraocular lens).

Routine or yearly physical exams.

Certain screening tests

Certain shots (vaccinations)

MediGap Policy fills in the gaps that A, B & D do not cover.

Coverage provided by private companies that are approved and

governed by Medicare.

Each Plan can charge different out of pocket costs

Each plan may have different rules for how you get services (like

whether you need a referral to see a specialist or in network).

These rules can change each year.

Annual subscription, fee based on what types of medications are covered and which

plan chosen.

Private insurers approved by Medicare cover different types of medications, plan

stays in effect for one year.

If no plan is available that covers medications needed that cost has to be covered by

paying out of pocket.

If the plan happens to drop a covered medication after policy is in effect that policy

is binding*

The average (weighted) monthly premium was $35.09 in 2009, which is an

increase from $29.89 in 2008*

Medical Expenses will affect almost everyone in

retirement, for the majority they will be the

largest expense they will have.

Social Security in a majority of plans will not

cover these costs.

Insert