Savings Required for Retiree Health Coverage Costs Declined in 2010
The amount U.S. residents must save to cover health care expenses in retirement declined in 2010 partly because of the federal health reform law, according to a report released on Tuesday by the Employee Benefit Research Institute, Reuters reports.
The expenses include health insurance premiums and out-of-pocket costs.
According to the report, a 65-year-old woman retiring this year will have to save between $143,000 and $242,000 to have a 90% chance of being able to cover medical costs. That figure is down from between $164,000 and $450,000 in 2009.
Meanwhile, a man age 65 will need to save between $124,000 and $211,000 if he retired this year, down from a range of $134,000 to $378,000 in 2009. Men's costs are lower because of a shorter life expectancy.
The report stated that retirees' expenses have fallen because of changes to Medicare prescription drug costs through the health reform law (Kearney, Reuters, 11/30).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.