paying for health care in retirement
TRANSCRIPT
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Reporting Retirement:
Finding New Angles
Debra Whitman, Ph.D.
Chief Public PolicyOcer, AARP@DebAARPNational PressFoundation
June 8, 2015
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Health Care Costs
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Often Overlooked:Mediare !ene"iaries Aren#t $ealth%
&n 201'(
• Hal) had ino*e belo+
2',500 a %ear• Hal) had sa-in.s less than
/1,00
By Race Median Income MedianSain!"
!las 1/,'50 10,'00
Hisanis 1','00 3,'00
A*on. !las and Hisanis 4201'(
6oures( 7aiser Fa*il% Foundation, A Pri*er on Mediare 2015 7FF &no*e and Assets o) Mediare !ene"iaries,9
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Often Overlooked:!ene"iaries Pa% a :ot
#nde
r $%
$%&
$'
()&
(*
(%&
('
+)&
+*
+%
;otal
1?=5>
20=8>
2'=/>
23=2>
rden o)
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Bene-ciary Sendin! for Medicare, /ee&/or&Serice Only, by A!e
Annual
/5 to /3 ,1'? 8,//2?0 to ? 5,''5 10,51?5?3 5,0' 10,552808 /,0? 11,8?85 3,/3 13,180
6oure( 2011 MC!6 data, Publi Poli% &nstitute, 2015
Hi.h Mediare
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A*on. 50 +ith Retire*ent6a-in.s, MaBorit% Ha-e 6a-ed er%
:ittle
6oure( *lo%ee !ene"t Researh &nstitute and Mathe+ Ereen+ald Assoiates, &n=, 201 Retire*ent Con"dene 6ur-e%=
%) Oerall
0n1$(23
%) Wor4er"
0n122*3
%) Retiree"
0n122'3
*25 *)5 >
'5 (512>
6)5 675'5
(5 (5(5
6*5 6$5 665
6(5 6(5 6(5
250,000 or *ore
100,000 to
23,333
50,000 to
33,333
8early 9alf of %) Wor4er" : 2;%of Retiree" &9ae le"" than
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Gneeted Health Care ensesCan Derail Retire*ent Plans
Retiree" =ith =or"e than e>ected -nance" inretirement oint to?
@hin!" are more e>.en"ie than you e>.ected
Aou had une>.ected health or lon!&term care co"t"
Aour income i" lo=er than e>.ected
Aou had to .roide -nancial "u..ort to family member"
Aou are de.letin! your "ain!" more Buic4ly than e>.ected
Aou canCt aDord to do "ome thin!" you =ould li4e
Other
28>
22>
18>
1>
10>
1>
8>
6oure( *lo%ee !ene"t Researh &nstitute and Mathe+ Ereen+ald Assoiates, &n=, 201 Retire*ent Con"dene 6ur-e%=
9i!her than e>ected e>en"e" 07+53 and#ne>ected healthcare;lon!&term care co"t" 07753
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Part A: Helps payfor hospital bills
Part B: Helps payfor doctor bills
Part C: Coveragethrough private
plans, calledMedicare
Advantage
Part D: Provides
prescription drugcoverage
Medicare
Mediare Has Man% Parts
AARP Public PolicyInstitute
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Mediare &s Not IFree
AARP Public PolicyInstitute
( 2015 Part A and ! osts )ro* Mediare=.o- at htt(KK+++=*ediare=.o-K%our*ediareostsKinde=ht*le 2015 Part C and D re*iu*s )ro* 7aiser Fa*il% Foundation, +ei.hted b% enroll*ent, 201=
http://www.medicare.gov/your-medicare-costs/index.htmlhttp://www.medicare.gov/your-medicare-costs/index.html
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$hat Are !ene"iaries Pa%in. ForL
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/5 Households Pa%Proortionatel% More than under
/5 Households )or Health Care
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Presrition Dru.Costs
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Source: Kaiser Family Foundation analysis of National Health Expenditure (NHE) data from Centers for Medicare and Medicaid Services !ffice of the
"ctuary National Health Statistics #roup
G=6= Health Care 6endin. Per Caita HasRisen at Historiall% :o+ Rates &n Reent
ears
0>
2>
>
/>
8>
10>
12>
1>
12=0>
3=3>
5=5>/=1>
?=>
8=/>
?=/>
/=2>5=8>
5=5>5='>
'=8>
2=3>'=1>'=2>'=>
2=3>
'=?>=0>
=?>=?>5=1>
5=5>5=/>5='>5='>5=2>
Chan.e in 6endin.
nnual !ro=th rate of health "endin! er caita for 6'()E" F 6'')E"Gan!e in actual health "endin! 7))) F 7)62 and roHected 07)6* F 7)723
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$rescription %ru& $rices "re Hi&h and 'ncreasin&
2006 2007 2008 2009 2010 2011 2012 2013
5.7% 5.9%
7.9% 8.4%
9.1%
11.5%12.3%
12.9%
3.2%2.9%
3.8%
-0.3%
1.6%
3.1%
2.1%1.5%
Brand Name Drug Prices (227 top drug products) General Inflation (CPI-U)
Average Annual % Change
6oure( 6=$= 6hondel*e%er and := Pur-is, IR Prie $ath Reort( ;rends in Retail Pries o) !rand Na*ePresrition Dru.s $idel% Gsed b%
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"mericans $ay a ot More For heir$rescription %ru&s
United States er!an" United #ingd$! %ndia &g"'t
(84)000
(66)000
(57)000
(2)000 (900
Price of heatiti" C dru!Soaldi
6oure( D= $hit*an and := Pur-is, Iensi-e Ne+ Heatitis C Dru. Raises Alar*s, Hun.ton Post,
Ma% 28, 201=
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Current rends "re N! Sustaina*le
• Chole"terol dru!" no+n as PC673 inhibitors areeeted to enter the *aret later this %ear
o Prie ta.( J
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on&+erm Servicesand Supports
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SS Costs: " oomin& Expense at !lder "&es
200 2005 200/ 200? 2008 2003 2010 2011 2012 201' 201 201550,000
55,000
/0,000
/5,000
?0,000
?5,000
80,000
85,000
30,000
35,000
8ational Aera!e Annual Co"t" of 8ur"in! 9ome0Priate and Semi&Priate Room"3, 7))*&7)6%
6e*iPri-ate Roo*
Pri-ate Roo*
Source: Genworth Cost of Care, 2004 - 2015
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National 6endin. )or :;66
5>
12>
22>
/1>
K@SS L>enditure" by Source, 7)67
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Care.i-in.
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6i.ni"ant :;66 Pro-ided b%Fa*il% Care.i-ers
&n 201, about '=5 *illion G=6= )a*il% are.i-ersro-ided are to a )a*il% *e*ber +ith li*itationsin dail% ati-ities in the rior %ear=
8umber of Care!ier" and the Lconomic alueof Care!iin!Nu*ber o) Care.i-ers '=5 *illion 4201
A-era.e Care HoursK$ee 2= hours 4201
ono*i alue er Hour 11=1/ 42003
;otal ono*i alue 50 billion 42003
e( Care.i-in. in the G=6= 2015 aluin. the &n-aluable( 2011 Gdate o) ;he ono*i alue o) Fa*il% Care.i-in.
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ou too are o) Mo*, but +ho +ill tae areo) %ouL
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Hoe($or and 6a-e
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Thank you!
Debra $hit*an, Ph=D=Chie) Publi Poli%