Financial Focus Pre-Retirees: Plan Now for Health Care Costs in a nursing home is more than $100,000 per year, according to the insurance company Genworth. And Medicare typically pays few of these expenses. Clearly, between regular medical costs associated with Medicare or those not covered by it, and costs resulting from the possible need for long-term care, your health care bills can mount. To meet these costs, you need to plan ahead - and take action. For example, it's essential that you in- corporate health care expenses into your overall financial cally pay 20% of the Medicare-approved amount If you're close to retirement, you'll have several financial issues to consider. But you'll want to pay for most doctors services. And when you enroll attention to one of the most important of these issues: health care costs. How can you prepare yourself for these expenses? First, get an early start on estimating health care costs. More than two-thirds of those planning to retire in the next 10 years say they have no idea what their health and long-term care costs will be in retirement, according to the Edward Jones/Age Wave Four Pillars of the New Retirement study. And some people dont worry much about these costs, which may be considerable, thinking that Medicare will pay for most of them. While Medicare does cover many medical expenses, it also has its own costs. 'You probably won't pay a premium for Part A (inpatient/hospital Medicare Parts A and B and will provide additional term care. coverage), since you likely had this cost deducted medical coverage, such as prescription drugs. from your paycheck when you were working. But if you are hospitalized, you'll have to pay deductibles and coinsurance (the percentage of costs you pay after you've paid your deductible). Part B (doctor's visits) requires a premium, deducted from your Social Security checks, and you must pay an out-of-pocket deductible. After you meet this deductible for the year, you typi- in Part D (prescription drug plan), you will likely also have to pay a monthly premium, an annual deductible and coinsurance or copays. To help pay for the Medicare de- ductible, coinsurance and copayments, you may want to get supplemental in-surance, known as Medigap. Premiums for Medigap vary, depending on the plan you choose. As an alternative to original Medicare, you could strategy. You can also work with a financial select Medicare Advantage (sometimes called Part C). Medicare Ad-vantage plans are offered by private companies approved by Medicare, but the long-term care stay. And the professional you work benefits and costs vary by plan. These plans generally will incorpo- rate professional to run some "what-if" analyses to see if your strategy would be derailed by a potential with may be able to suggest specific protection vehicles that can help you meet the costs of long- The best time to prepare for your health care costs during retirement is well before you retire. When you incorporate all the above, the annual out-of-pocket costs for tradi-tional medical So, if you havent already started, now is the time expenses likely will be about $4,500 to S6,500 per to do so. When it comes to paying for health care, year, per person- not insignificant, but certainly a number that can be addressed by care-ful planning. But there's one more expense to keep in mind: long-term care. The average cost of a private room Edward Jones. Member SIPC. the fewer surprises, the better. This article was written by Edward Jones for use by your local Edward Jones Financial Advisor Edward Jones Sean P. Asiala AAMS Edward Jones Michael C. Caley AAMS Edward Jones Pam Covington CFp AAMS Edward Jones Tod Heisler AAMS Edward Jones Jason Korner CFP Edward Jones Quinn Nofziger Edward Jones Gwen Ruppert Edward Jones Karen Rupert Financial Advisor Financial Advisor Financial Advisor Financial Advisor 7030 Poinne inverness Way Sute 125 Fort Wayne, IN 46804 432-3613 Making Sense of Investing Financial Advisor Financial Advisor 14413 linois Rd Ste E Fort Wayne, IN 40814 Financial Advisor 7127 Homestead Rd. Suite C Fort Wayne, IN 46814 karenupert@edwardjones.com 263-4760 Making Sense of Investing Financial Advisor 901 Chestrut Hls Parkway Fort Wayne, IN 48814 7525 West Jetferson Bivd. Fort Wayne, IN 40804 6525 Constitution D. Fort Wayne. IN 40804 7329 West Jetferson Blvd Fort Wayne. IN 46804 414 S. Scom Rd. Fort Wayne, IN 46814 625-3524 Making Sense of Investing 432-0304 625-5700 Making Sense of Investing 478-8038 Making Sense of Investing 444-3134 Making Sense of Investing 399-5853 Making Sense of Investing Making Sense of Investing Financial Focus Pre-Retirees: Plan Now for Health Care Costs in a nursing home is more than $100,000 per year, according to the insurance company Genworth. And Medicare typically pays few of these expenses. Clearly, between regular medical costs associated with Medicare or those not covered by it, and costs resulting from the possible need for long-term care, your health care bills can mount. To meet these costs, you need to plan ahead - and take action. For example, it's essential that you in- corporate health care expenses into your overall financial cally pay 20% of the Medicare-approved amount If you're close to retirement, you'll have several financial issues to consider. But you'll want to pay for most doctors services. And when you enroll attention to one of the most important of these issues: health care costs. How can you prepare yourself for these expenses? First, get an early start on estimating health care costs. More than two-thirds of those planning to retire in the next 10 years say they have no idea what their health and long-term care costs will be in retirement, according to the Edward Jones/Age Wave Four Pillars of the New Retirement study. And some people dont worry much about these costs, which may be considerable, thinking that Medicare will pay for most of them. While Medicare does cover many medical expenses, it also has its own costs. 'You probably won't pay a premium for Part A (inpatient/hospital Medicare Parts A and B and will provide additional term care. coverage), since you likely had this cost deducted medical coverage, such as prescription drugs. from your paycheck when you were working. But if you are hospitalized, you'll have to pay deductibles and coinsurance (the percentage of costs you pay after you've paid your deductible). Part B (doctor's visits) requires a premium, deducted from your Social Security checks, and you must pay an out-of-pocket deductible. After you meet this deductible for the year, you typi- in Part D (prescription drug plan), you will likely also have to pay a monthly premium, an annual deductible and coinsurance or copays. To help pay for the Medicare de- ductible, coinsurance and copayments, you may want to get supplemental in-surance, known as Medigap. Premiums for Medigap vary, depending on the plan you choose. As an alternative to original Medicare, you could strategy. You can also work with a financial select Medicare Advantage (sometimes called Part C). Medicare Ad-vantage plans are offered by private companies approved by Medicare, but the long-term care stay. And the professional you work benefits and costs vary by plan. These plans generally will incorpo- rate professional to run some "what-if" analyses to see if your strategy would be derailed by a potential with may be able to suggest specific protection vehicles that can help you meet the costs of long- The best time to prepare for your health care costs during retirement is well before you retire. When you incorporate all the above, the annual out-of-pocket costs for tradi-tional medical So, if you havent already started, now is the time expenses likely will be about $4,500 to S6,500 per to do so. When it comes to paying for health care, year, per person- not insignificant, but certainly a number that can be addressed by care-ful planning. But there's one more expense to keep in mind: long-term care. The average cost of a private room Edward Jones. Member SIPC. the fewer surprises, the better. This article was written by Edward Jones for use by your local Edward Jones Financial Advisor Edward Jones Sean P. Asiala AAMS Edward Jones Michael C. Caley AAMS Edward Jones Pam Covington CFp AAMS Edward Jones Tod Heisler AAMS Edward Jones Jason Korner CFP Edward Jones Quinn Nofziger Edward Jones Gwen Ruppert Edward Jones Karen Rupert Financial Advisor Financial Advisor Financial Advisor Financial Advisor 7030 Poinne inverness Way Sute 125 Fort Wayne, IN 46804 432-3613 Making Sense of Investing Financial Advisor Financial Advisor 14413 linois Rd Ste E Fort Wayne, IN 40814 Financial Advisor 7127 Homestead Rd. Suite C Fort Wayne, IN 46814 karenupert@edwardjones.com 263-4760 Making Sense of Investing Financial Advisor 901 Chestrut Hls Parkway Fort Wayne, IN 48814 7525 West Jetferson Bivd. Fort Wayne, IN 40804 6525 Constitution D. Fort Wayne. IN 40804 7329 West Jetferson Blvd Fort Wayne. IN 46804 414 S. Scom Rd. Fort Wayne, IN 46814 625-3524 Making Sense of Investing 432-0304 625-5700 Making Sense of Investing 478-8038 Making Sense of Investing 444-3134 Making Sense of Investing 399-5853 Making Sense of Investing Making Sense of Investing