Good News About Healthcare Costs for People on Medicare
One very big expense to stop worrying about
Everyone is likely aware of the Fidelity report stating that a 65-year-old person in 2023 will need to save $157,000 for medical costs, while a married couple will need $315,000.
We know that 69% of people ages 65 to 69 have less than $100,000 saved, and 71.2% of people ages 65 and older have less than $250,000 saved and that makes the Fidelity numbers really scary.
I debunked that number in my May 2023 article titled “How to Plan for Medical Expenses After Age 65.”
But because of the Inflation Reduction Act of 2022, there is some really good news to share. That news will also result in significantly lower costs. Prescription drug costs are less of a worry today, and they will be even less of a worry in 2025.
Even with the Part D prescription drug benefit, the cost of drugs has been an ongoing problem. The fact is that nine out of ten people aged 65 and older report taking at least one medication. However, 54% of adults aged 65 and older report taking at least four medications.
According to the National Library of Medicine, 20% of older adults reported financial hardship due to prescription drug costs. The hardship is a direct result of high…
