CNBC predicted in November of 2017 that many Medicare Part B recipients will be paying up to 23% more for their 2018 premiums. Thanks to the Social Security Cost of Living Adjustment in 2018, many more Medicare recipients are paying the standard Part B premium rate of $134 per month this year. In 2016 and 2017, when Social Security COLA increases were negligible or nonexistent, about 70% of Medicare enrollees had a discounted rate which held Part B premium costs down. Medicare costs and the overall costs of Health Care are a complicating factor for retirement planning.
It's important to note that Medicare will not take care of your long-term care needs. Medicare only pays for the cost of a skilled nursing facility for 20 days; it then requires a significant co-pay from you for the next 80 days. After 100 days, Medicare's long-term care coverage runs out. Considering that a 2017 projection by PBS NewsHour and the SCAN Foundation estimated that 70% of people 65 or older will one day need some form of long-term care, it becomes increasingly important to factor long-term care coverage into retirement planning.
How are many Americans covering their Long Term Care needs? Some insurers are offering hybrid life insurance or annuity policies with Long Term Care options. Feel free to contact me to review the available options that would make the most sense in your situation.
