Even with nearly 81% of retirees citing good health as the most important key to retirement, finding retirement health care is notoriously challenging. According to a recent report from TIME, certain states can promise lower costs than others, depending on circumstances like insurance. A recent analysis by HealthView Services details the differences in out-of-pocket health care costs after retirement from state to state.
The cheapest health care costs for retirees are in Hawaii, with the average patient expected to pay $2,818 after their first year of retirement, and a total of $112,528 over the following 20 years. That being said, Hawaii is also the most expensive state to live in. A close runner-up is Vermont, with first-year expenses totaling $3,074, for a 20-year total of $112,528.
In the most expensive retirement health care states, retirees can expect a different set of costs. In Michigan, first-year costs are around $3,707, with a total of $151,175 over the next 20 years. This creates a cost difference between Michigan and Vermont of around $28,000 in 20-year costs. The costs of retirement living in Michigan also exceeded the costs of more typical high-cost living states like New York and California.
According to a separate HealthView report, a healthy couple of 65 will have lifetime costs totaling $266,589 for Medicare parts B and D, along with supplemental coverage. Including other out-of-pocket costs typical to healthcare, the number grows to $394,954, which leaves three out of every four pre-retirees worried about their costs level. In order to cover 90% of costs, retirees will need at least $271,000 in savings.
Experts suggest the best thing you can do to prepare for retirement health care costs is monitor your health in the years before it. Make choices to keep your body and mind healthy, and you can reduce the inevitable healthcare bill that retirement brings with it.