Medicare only covers about half of a typical person’s health care costs. Medicare does not cover nursing home care or long-term home care, hearing aids, vision care or dental care. Most people would be shocked to know that the average out-of-pocket cost for people with Medicare was $4,734 in 2010. This represents a sizeable portion of the annual income of the typical person with Medicare.
Certain subpopulations of people Medicare are at risk of having to spend more than $5,000 a year on their care. People over 85 spend three times more out of pocket, $5,962, than people between the ages of 65 and 74, $1,926. And women spend on average more than men, $5,036 as compared to $4,363.
People who need substantial amounts of health care, about 13 million people, or one in four people with Medicare, typically spend $11,500 on their care. This can easily represent more than half of their income.
Are you spending as much on health care as you are on food?
Are you prepared for the cost of long-term care?
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