TSCL Chairman Edward Cates
"But that chunk grows bigger as people's health declines with age," says TSCL Chairman, Ed Cates.
cites the following example of how healthcare costs can balloon when a new health condition is discovered.
"In one case that we know of, a healthy individual, who turned age 59 in 2010, spent $3,348 in health insurance premiums that year and $201 in annual out-of pocket costs," says Cates
"Early the following year the patient's doctor discovered a wheeze and referred the patient to a pulmonologist.
In 2011, the patient's premiums had jumped 18 percent to $3,948, and out - of - pocket costs were $1,004 - five times the out - of - pocket costs of 2010.
But by 2014 the patient spent $4,164 on premiums, 24 percent more than 2010, and a total of $5,867 out - of - pocket, more than 28 times the amount spent in 2010," Cates
Premiums and out of pocket costs jumped 183% in just four years," Cates notes.
"And unfortunately there's nothing unusual about this case - it's all too typical," he
"There is some good news.
This individual should see significantly lower premium costs next year, once 65 and starting Medicare," Cates
"But further changes in health could mean similar rounds of rising out - of - pocket costs," he
"With the average Social Security retirement benefit at $1,100 per month, that means about one in five Social Security recipients will spend between $375 - $550 per month for Medicare premiums and other out-of-pocket costs this year," Cates
"That spells big problems ahead as more older Americans reach Medicare age without employer pensions, adequate retirement savings, and the increasing likelihood of Congressional changes," Cates