How Baby Boomers Can Plan Ahead for Healthcare Needs

If you fall between the ages of 57 and 75, you’re busy. Baby Boomers increasingly find themselves with different obligations to different people. Whether caring for their elderly parents or sending their dependents out into the world, they’re in a life stage that can be pretty demanding — and that’s not even considering their own needs.

Let’s take a deeper look at the core challenges Baby Boomers face, a few of their more frequently asked questions about healthcare, and the coverage options that can make healthcare budget planning easier moving forward.

Aging Is Anything but Free

With greater care needs at the forefront — as well as rising healthcare costs — Baby Boomers are concerned about how they can enter retirement with adequate funds. Managing health insurance coverage options requires complex, often pricey insurance and financing decisions at the family level for people in this generation.

Further, the influx of Boomers retiring in 2020 is expected to more than double Medicare and Medicaid costs. This will only increase the existing coverage gaps within the system. With taxes set to cover only 48% of the associated costs, it places a tremendous amount of stress on Baby Boomers to fund their own care for a decade or more — in addition to other living expenses and without the assurances offered by a consistent paycheck.

Boomers also must contend with a whole host of health concerns, including diabetes, obesity, higher cholesterol, and hypertension. Each medical condition requires diligent long-term care, which can translate to an uptick in expenses.

There is good news, though! Knowing these challenges ahead of time actually allows Baby Boomers to approach health proactively. To do that, let’s answer some frequently asked questions about healthcare management after leaving the workforce.

Will my employer provide health insurance after my retirement?

It’s possible. While there are companies that do this, it has become less common. If you’re nearing retirement, reach out to your HR department to see what your health insurance coverage options might be and at what cost. See whether your employer offers coverage through COBRA, comparing those costs against Health Insurance Marketplace plans.

How much should I rely on Medicare?

There are several subcomponents of Medicare, and each covers different stages of the care process. It’s important to understand, though, that coverage under Medicare is not all-encompassing. You’ll need to take stock of the gaps in advance to know where you might need additional coverage. Supplements like Medigap and Medicare Advantage can offer more complete coverage than under your current plan.

Beyond that, connect with an agent and have them lay out what coverage options are available to you. Once you do secure Medicare, you’ll want to review annual changes and stay on top of things to make sure you don’t overlook a new gap that needs filling.

Broader Horizons

For Baby Boomers, the 2020s represent a major sea change. Consider that within the next decade, all Baby Boomers — 1 in 5 Americans, to be exact — will be 65 or older. It represents an important shift in age demographics nationally that will play a decisive role in shaping healthcare costs and workforce dynamics going forward.

Meanwhile, the service capabilities within healthcare will also be a factor. More people are becoming eligible for Medicare when there is already an increasing demand for nurses and physicians.

Despite these challenges, there are solutions within view. Initiatives like Age-Friendly Health Systems and counterparts under the World Health Organization are redefining how we view and care for aging demographics in America.

Technology is also stepping up to fill the care gap. Older Americans are becoming increasingly more comfortable with smart devices and using them more frequently for health needs like setting reminders, after-hours visits, classes, and appointment follow-ups. And they are driving digital growth in a big way among individuals who are retired (or nearing retirement).

The digital uptick in medical services is likely to drive personalized care in ways we can’t yet imagine. The onset of telehealth has been incredibly valuable, boosting access to care among those who might otherwise not have the means to get to on-site appointments as easily.

Better living standards and advancements in medicine will continue to profoundly affect the industry and the people who need healthcare. The good news is that the Baby Boomer generation and healthcare system can be in a dynamic partnership rather than at odds.

By planning out coverage in advance and using new service technologies, older generations will be well-positioned to maintain their healthcare while still having time to enjoy the lifestyle that quality care affords.

At Health Karma, we know healthcare is complicated. That’s why we’re here to simplify complex subjects
and help you navigate any confusion. To learn more about how health insurance affects your generation, click here.