Posts filed under 'Medicine'
June 20th, 2008
Brian J. Knabe, MD
Why include a series about health and wellness in a financial publication? With close examination of any retirement plan, the connection is apparent. Healthcare expenses consume an increasing portion of a retiree’s savings. One reason is the double-digit yearly rise in the overall cost of healthcare in the
US. Additionally, longer life expectancies increase the length of time that an individual will need to pay for the care.
An examination of healthcare for retirees often begins with Medicare. Dire warnings about the impending insolvency of the system continue to be an annual occurrence on Capital Hill. Currently it is estimated that Medicare will be broke as of 2018 or 2019 if the current system is kept in place. Medicare continues to act as a “safety net” for those over 65 years old. But the cost to the individual beneficiary continues to rise as well. Yearly premium increases charged to retirees has been in the double digits as of late. Medicare expenses for the government are rising just as large numbers of Baby Boomers are poised to retire over the next couple of decades when they will stop contributing to the system.
Should an investor planning for retirement count on Medicare being available and providing for healthcare needs? The answer is yes and no. There are only a couple options the government has to rectify the shortfall – decrease benefits or increase premiums and co-pays. The solution will probably be a combination of these. Premiums will undoubtedly continue to rise, and benefits for the individual will decrease, either in the form of less treatment options or the exclusion of wealthier individuals from the system altogether. One good option to help make up for this shortfall is a Health Savings Account, or HSA. The contribution limit for 2008 is $2,900 for an individual and $5,800 for families. Those over 55 can also make a catch-up contribution. Making the maximum contribution each year will help you build a medical retirement fund that can be used to pay future medical expenses, tax-free. Ask your financial advisor if an HSA is a good option for your individual situation. Whether through the use of an HSA or another savings vehicle, it is prudent to include healthcare expenditures in the retirement planning process.
February 4th, 2008
Brian J. Knabe, MD
With the state of the economy and world affairs, health care issues are not at the top of the agenda in the current political debate. But the next President and Congress may very well make some changes that could affect the landscape of medicine. President Bush brought up several of these issues in his final State of the Union address. As pointed out in the following link, he devoted only 159 words out of a total of 5,757 in his speech to health care.
http://blogs.wsj.com/health/2008/01/29/state-of-the-union-unpacking-bushs-health-talk/
He made the most of those words, and brought up a number of important subjects.
To build a future of quality health care, we must trust patients and doctors to make medical decisions and empower them with better information and better options. We share a common goal: making health care more affordable and accessible for all Americans. The best way to achieve that goal is by expanding consumer choice, not government control. So I have proposed ending the bias in the tax code against those who do not get their health insurance through their employer.
In the Democratic response, Kansas Gov. Kathleen Sebelius pointed out Bush’s refusal to expand the State Children’s Health Insurance Program: We know that caring for our children, so they have a healthy and better start in life, is what grownups do. Governors in both parties, and a large majority of the Congress are ready, right now, to provide health care to 10 million American children, as a first step in overhauling our health care system. The differing viewpoints on this subject come down to the classic argument of bigger vs. smaller government, socializing the system vs. a market-based solution. Despite his recent propensity to spend, Bush comes down on the side of a free market approach in this case. While it is easy to pull at heart strings when it comes to providing health care for our children, it is important to look at what is actually being provided. The current Medicaid system is already overburdened, under-funded, and months behind on payments to hospitals and doctors. (see “Deadbeat State Hurts Hospitals, Agencies” at http://www.rrstar.com/news/columnists/x1059367743) Those who have tried to find a doctor accepting new Medicaid patients have probably been frustrated by the experience. Many physicians – primary care and specialists alike – accept very few if any new patients with government-funded insurance. People unaffected by this Medicaid issue may unfortunately find similar problems as they transition to Medicare.
Medicare - that is a whole new subject. See future blogs.
January 25th, 2008
Brian J. Knabe, MD
As a family physician, I often give advice to patients regarding wellness and disease prevention. The article in the following link illustrates some of this type of advice:
http://health.msn.com/health-topics/articlepage.aspx?cp-documentid=100174651&page=1
Hey, it’s not the New England Journal of Medicine, but much of the content is common sense and sound from a medical standpoint. The most striking aspect of the article, in fact, is the common sense and simple nature of most of the points – drink more water, exercise regularly, and don’t skip breakfast! Another good point made by this article is the statistics that are quoted – “decrease your risk of stroke by 50 percent”, “reduce… depression by 71 percent”. Do you realize that many of us pay over $100 per month (or a $35 co-pay, if you have insurance) for a drug that may not offer this same level of benefits? Indeed, many diseases can be prevented or treated by relatively simple lifestyle changes. Ask your doctor which preventive measures would give you the most benefit – then act on the advice!
December 19th, 2007
Wendy M. Blair, CFSC
There are only a few more weeks left in 2007 – Yikes! If you are currently enrolled in Medicare Part D you have until December 31st to review your current plan and possibly change to a new plan. This annual review is critical! Unfortunately, there are major changes in the Medicare drug plans for 2008, including some significant movements in premiums as well as major changes to the structure of the drug formularies. According to Avalere Health, the Centers for Medicare & Medicaid Services decided to drop more than 1500 drug codes from last year’s list of formulary-approval drugs. So, for example AARP’s top plan (AARP Medicare Rx Preferred) is reducing its drug formulary by 30.2%. Obviously this reduction in drug coverage could have a significant impact on your total out of pocket costs for 2008.
In addition to AARP, two of Humana’s top plans are also reducing the number of drugs on their formularies for 2008 by over 30%. We would like to think that once we get our loved one signed up for this program we won’t have to worry about its fair and adequate coverage in the future – but this is not the case. Many local senior centers will assist with the annual enrollment and review. Access to the Medicare website is available at www.medicare.gov or if you are patient, you can call 1-800-633-4227. For other important issues facing seniors, I would encourage you to visit www.seniorjournal.com – this website has a wealth of information for seniors including Money & Investments, Health-Fitness, Government Issues, and Enjoying Life.
Brian J. Knabe, MD
