| One of the greatest financial challenges faced by | | | | to adjust your investment strategy and method of |
| today's retirees is the rising cost of health care. | | | | investing. Be prepared to reduce your other |
| Prescriptions, insurance premiums, doctor's office | | | | expenses, perhaps by lowering your lifestyle or selling |
| visits and hospital stays are all increasing more rapidly | | | | your vacation home. You need to be prepared to tap |
| than inflation. Whether you're in your golden years or | | | | your principal if necessary. Some seniors have found |
| fast approaching them, you must take a serious look | | | | themselves reentering the workplace, either part |
| at how health care costs will affect your retirement | | | | time or full time to handle these expenses. |
| nest egg. | | | | Another way to manage your health care costs is to |
| The causes of rising health care costs are many. | | | | slash the costs of your prescriptions. Medicare |
| Today's population is living longer than ever. That's a | | | | recipients are eligible for a Medicare Approved |
| good thing, but it does mean that our health care | | | | Prescription Discount Card through the end of 2005. |
| system is being stretched to handle the increasing | | | | You can check out all the details at |
| load. New drugs and other treatments are continually | | | | Many find that ordering drugs through the mail offers |
| coming on the market to address health care | | | | them greater savings and convenience, especially |
| problems in new ways. Preventive drugs are being | | | | when ordering from Canadian pharmacies. In fact, |
| prescribed than ever before. | | | | several states, including Illinois, New Hampshire and |
| Some retirees get blindsided by changes in their | | | | Wisconsin have taken active steps to make ordering |
| company's health plan. Today, only 11% of companies | | | | drugs from Canada easier for their constituents. All |
| offer health benefits to retirees, and that number is | | | | told, 24 states have considered similar measures. |
| decreasing. Many don't realize that these retiree | | | | With savings of around 60% in some cases, it's easy |
| health benefits aren't a legal obligation of the | | | | to see why. |
| company and can be changed at any time. To cut | | | | Sometimes ordering a 90 day supply has a lower |
| costs, many companies are reducing benefits, | | | | cost, plus you save 2 co-pays versus a 30 day |
| charging more, or eliminating retiree health plans | | | | supply. Some doctors will prescribe a higher dose |
| entirely. For example, one of my clients retired from | | | | drug with the understanding that the patient will cut |
| a large company and due to its financial troubles and | | | | the pill in half. This 'double dose' method should only |
| rising health care costs, his monthly premiums have | | | | be used under your doctor's supervision but can also |
| increased from $40 a month to $220 in just 4 years. | | | | reduce your costs. Generic drugs can save you a |
| So what's a person to do? You can't escape the | | | | bundle. |
| rising cost of health care, but you can certainly plan | | | | Researching prescription plans, prices and ordering |
| for it. Pre-retirees need to take a hard look at their | | | | options can take a good deal of time and can be |
| savings plan to make sure they're saving enough to | | | | somewhat confusing. But the savings can really add |
| cover these costs. Find a financial calculator on the | | | | up. The good news in all of this is that today's |
| internet to determine how much to save. | | | | seniors are living longer and better than ever. And |
| If you're still years from retirement and healthy, don't | | | | this is due in large part to the great strides in medical |
| think you'll need to save less. As you age, chances | | | | research. We may hate to pay more each year for |
| are your health will decline, perhaps suddenly. So don't | | | | our health care, but it's that very care that is greatly |
| base your savings on your health situation today. | | | | increasing our quality of life. With proper planning and |
| But saving enough isn't always practical. Pre-retirees | | | | savvy consumer action, you can continue to afford |
| and retirees alike need to have a back-up plan in | | | | what is probably the greatest health care in the |
| place in case their health care or other expenses | | | | world. |
| take a sudden unexpected increase. You may need | | | | |