Believe it or not, healthcare costs can take a toll on your retirement and even chunk out a major portion out of your finances. Therefore, reducing cost in healthcare in any way you can is very important.
Though healthcare issues and expenses can be out of your control, there are ways you can do to alleviate and buffer the impact it might cause to your retirement. Here are seven ways that you can do to reduce the cost of one of heaviest expenses you can face during retirement.
Being healthy can save you from a lot of healthcare expenses. It is also the easiest way to cut your need of medical services. Avoiding vices and other bad habits, exercising daily, eating healthy foods, getting enough sleep are effective ways of keeping your need to see a doctor, medical tests, and hospitalization out of your expenses. Your overall health has a big impact how much you will spend on healthcare services thus will reflect on your wealth. The healthier you can, the more wealth you will save.
Out-of-pocket costs, co-insurance, co-payments are just some of the healthcare expenses you will face during retirement. To reduce the costs, be conscious of various prices of health services, diagnostics tests, and even prescription drugs. Be aware how much are the costs of doctor fees and procedure. Shop around as much as you can. Don’t hesitate to ask other options available besides the popular brands of medications. For example, CT-Scan fee is much cheaper in radiology centers
Know your additional benefits that were provided for free or low costs under Affordable Care Act. Detect diseases at an early stage rather than seek medical attention at a later stage, it is much cheaper that way. But better, if you implement a preventive health measure by changing necessary lifestyle changes.
Medicare will only cover about 50-80% of your healthcare expenses, the rest will be paid by you, and that includes co-payments, co-insurance, and deductibles. It may not seem that much, but if you add everything, it can be burdensome. Get a Medicare Supplement plan to take care of your healthcare costs that are not covered by your Original Medicare. You can get it once you already have Medicare Plan A and Plan B.
Also known as Medigap plans, Medicare Supplements has monthly premiums and are provided by private insurance companies. Even though it has monthly premiums, out-of-pocket costs are still heavier and expensive that is why having Medigap plan is better.
Remember the saying, no man is an island? Well, it is true! Especially if it is about your health. Having family, friends and support system around you has a direct impact on your health. Having those important people around you helps improve your mood and overall health in the long run. Keep in touch with your loved ones either personally or through the internet.
Of course, it pays a lot to save for your future healthcare needs. Save on top of your retirement savings. Having a fund dedicated to this need only helps reduce the amount of burden and provides buffer up to the time that your health coverage will take effect. Take advantage of Health Savings Account or HSAs. HSAs let you save tax-free and withdraw money for healthcare costs tax-free.
There’s no way to avoid healthcare costs once it arises. The only thing you can do is to reduce the burden it may cause to you. From being a price-savvy healthcare shopper, health-conscious retiree to utilizing Medicare supplement plans to cover out-of-pocket healthcare costs; there are some ways of reducing healthcare costs. You just have to take action ahead of time!