Cost of Senior Living

[Yonnie3]

I am getting a 0.3% cost of living increase on my Social Security. I have read that this increase will be completely absorbed by an increase in the Medicare B premium. My part D prescription insurance has announced what amounts to a 15% increase when I consider the premium increase and the increased deductible. My supplemental insurance increased 6.5% mid-year 2016 and I expect it to increase again in 2017.

When I figure increases* for me just on medical insurance by multiplying the percentage of pension (fixed) and Social Security income I spend on medical insurance by the percentage increase, I get 1.1% which is a heck of a lot more that 0.3%.

I've also seen rather large increases in my vehicle and dental insurance.

I am concerned that in the longer term my standard of living will be significantly eroded as my premiums continue to increase. This could be incredibly worse under a new administration.

I've been on Social Security for under two years and semi-retired (under employed) for nearly a decade. I find my part-time work to be too physically demanding at times. I would like to quit, but worry about money.

Do any of you seniors have thoughts about the longer term financial issues in retirement?

*It would not be correct to call that 1.1% increase inflation as medical expenses, on average, increase as you age.

[TreasonousBastard]

1. Oh, yeah...

Savings are burnt and SS barely covers my rent. The VA covers my drug costs and much of what Medicare doesn't cover, but only for what they prescribe and do.

Every so often we have a county lottery for rent subsidies, but the odds of getting one are as bad as the state lotteries. Last time I sent in an application they sent the envelope back unopened with a thank you and a sort of apology.

Like a lot of others, I'll be working until I die.

[lillypaddle]

2. Social Security is my only income

I have a supplemental insurance plan which is about $120/mo, and pay for an Rx plan, which is about $70. I live in a small, one bedroom apartment and drive a 22 year old car (that's my biggest fear, how I will replace it if need be). And of course there is rental insurance and car insurance ... SS covers it all, plus food, but I have to supplement it from my savings at about $150 a month.

I have under $20,000 in savings. I turn 69 in December. If I live longer than 5 years I'll be in real trouble.

The only way I've been able to live primarily off SS is that I had zero debt when I retired. And I took an early retirement at that. That would be my advice to anyone nearing retirement - get rid of your debt.

[dixiegrrrrl]

7. I found a way to cut 90% off my prescription costs.

I do not have supplemental insurance for drugs or med bills, just Medicare A and B.

I am taking a $250.00 a month med for cancer treatment, which we cannot afford.

But...there are online drug discount coupons which cut the monthly cost down to ...$20.00.

I know, I could not believe it at first, but we tried it, and it works.
I got 90 day supply from one pharmacy for $30.00.
The cash price would have been $800.00.
and 30 day scripts from another pharmacy for $20.00, so have over a year's worth of the drug I need, for $50.00.
The refills are at the same low price.
My oncologist was happy to write a 90 day script with 4 re-fills after we tried the 30 day script and found it worked.

I use goodrx.com coupons..they actually will mail a card I can use.
the thing is, I prefer to print out the coupon cause it has prices on it, the card does not, but I guess I could always check the site for the most recent discount price.
Works for generics, have not tried brand name prices because they are so damn high even with a discount.

Have used it on several prescriptions, it works very well for my budget.

[lillypaddle]

8. thanks for the info

I'll check into it.

[lillypaddle]

9. I checked on two of my many prescriptions

Symbicort was $297.94 for one month. With my Rx plan, I pay nothing for a 90 day supply.
Hydroxyzine was $66.32 for one month. With my Rx plan, I pay nothing for a 90 day supply.

The only time I run into a problem is when I am in the donut hole which happened this year in September. Yikes! However, My doctor gave samples for symbicort to get me through the rest of the year until I can start over again.

Under the ACA, the amount to the donut hole has expanded a little each year. I wonder what, if anything, will change when they start fucking with it.

[dixiegrrrrl]

10. The discount sites are not much help with non-generics

altho, Teva has won a court battle in Britain to make a generic of Symbicort.

The hydroxyzine I found on the site is generic for Visteril ..dunno know if that is what you are taking.
Depends on how many mg and how many capsules, but I found 90 capsules of hydroxyzine pamoate 25mg for 11.00.

the discounts can be very helpful for people with no insurance or people whose monthly premiums and /or copays are high.

Naturally, when trying to spend up for the donut hole, discounts are not that helpful.

Works for me since I am not having to pay Part D costs.

[lillypaddle]

11. Listen, I appreciate your info

I learned a lot today from your experience. Even though it may not work for me in all instances, it may work in some. And heaven knows, it will probably help others. That's what's important. We are here to help each other. Thanks.

[RealityChik]

17. GoodRX is amazing!

I only have Part D because of that ridiculous lifetime penalty added to your premium if you don't. I throw $33 down the toilet for nothing every month and never use. I use the GoodRX discount card instead. If I used Part D, my drug would cost $465 per month. (Retail price is $610), but with GoodRX, I pay $203 per month for the very same drug! Even Costco charges $330 per month! Costs vary among pharmacies that honor GoodRX and not all pharmacies participate.

[No Vested Interest]

21. Who is behind GoodRX, i.e., who is paying for the drugs?

I have been sent the card in the past, but paid no attention, as little to no explanation is given of how it works or who is behind it.

[Sherman A1]

19. I will check into this

Thanks for posting this information.

We need to help each other as much as possible and this will certainly be of assistance.

[Hoyt]

3. I can only commiserate. I am drawing my SS, but I continue to work because

it would be tough to live off it without some serious changes. I'm pretty much resigned to making those changes knowing that one morning I will wake up (hopefully) and say I'm not working anymore. But, I'm putting it off as long as possible.

I do not think most people realize just how much health care costs Seniors when they sing the praises of Medicare. Or, maybe they just don't want to think about it.

Are you in a Medicare Advantage Plan? I really think you will save a few dollars -- not a lot, but $30 or $50 a month or so -- doing that rather than having traditional Medicare, a supplemental policy and a drug policy. But, you make sacrifices in the limited doctors in the network.

I would say we have to fight for representation from those dedicated to increasing Social Security, but right now that appears a pipe dream.

Good luck.

[Yonnie3]

5. I'm not in an Advantage plan

I priced them and the ones who had my doctors were more expensive when I considered deductibles, co-pays and premiums. I'm not sure I considered Rx properly, it has been a while. I have had a 21 year squabble with cancer and undergo surveillance procedures regularly as well as booster treatments and don't want to change networks.

I read that there is an anticipation in the markets of much increased inflation in this administration. I haven't seen any opinions as to what specific items will increase in the COLA estimate. I know my market basket as a senior is quite different then what is used to calculate the COLA.

[alfie]

4. Have you gone to MyMedicare.gov to see Part D plans for '17?

I am having to switch companies to get a better plan. My current one would cost me an arm and a leg. They will walk you through the process. Envision RxPlus and SilverCare I think were the two best for me. I am going with Envision.

I primarily depend on my SS for my income. My saving grace is that my sister, also retired, lives with me so we can split expenses. Otherwise I would be in a world of hurt.

This upcoming administration and congress is going to peck away at our SS and Medicare until it is all in private hands.

[Yonnie3]

6. No, I have not. Thanks for the suggestion.

I'll check there to see what's available.

[Thinkingabout]

12. Though Medicare is good for seniors it does not cover everything.

It made me wonder why so many thought putting everyone on Medicare would solve our health care issues, it is not free by any means. There is a premium for Part B and then a cost for Part D unless one signs up with an Advantage plan. I purchase a Medigap plan and of course there is a premium for the Medigap. To hear Congressional members talk about privatizing Medicare does not give a warm feeling. The same bunch refuses to give up their Cadillac plan and go onto Medicare or ACA.

[Yonnie3]

13. Some conflate Medicare with Medicaid,

and think that Medicare is a big give away.

Privatizing Medicare means inserting an insurance company's overhead costs and profits into my medical care. Why on earth do those Congress critters think that they should make me pay more for my health care so that their financial supporters (contributors) can make more money.

The lack of a public option is one of the big problems with Obamacare. There should have been an option to buy medicare at cost for every legal alien and citizen. For the lower income people, there should have been subsidies. The free market driving costs down is a myth. Health insurance is so highly regulated by the states that there are little to no market forces in play.

[TexasBushwhacker]

20. If your income is low enough

You can sometimes get Medicaid in addition to Medicare.

[No Vested Interest]

22. As I understand it, one can have no more than $1500 in assets if going on Medicaid.

You can keep a paid for modest car, and, if married, the home can be retained by one or other (a little complicated to explain here).
I also understand that 65-70% of persons in nursing care are on Medicaid.

Have to wonder how the plans to change the ACA will impact the many thousands of persons on nursing care Medicaid. Likely staffing will go down - it's already very low.

[TexasBushwhacker]

23. It's something like that, but I don't believe they count

retirement savings (IRA, 401K) the same as regular checking account cash. In any case, there's no harm in applying. They would rather as many people age in place rather than going into nursing homes.

[trof]

14. I wake up at night worrying about if we'll outlive our savings.

My small pension is in the hands of the PBGC.
The government could decide to shut that down at any time.

Thanks to my union I also had a 401-K, now converted to an IRA.

If we didn't still have mortgage payments we'd probably be OK, but we do.
With the orange obscenity now in charge we're afraid.
S/S COLA doesn't even begin to keep up with Medicare premium increases.

[Yonnie3]

15. You are one of many.

I know several people who have gotten a reverse mortgage. It paid off the mortgage and they started receiving a fixed payment for as long as they can live in the house. None of them wanted to leave an estate to their heirs.

They started sleeping better, but are now worried the new administration will cause inflation eroding the value of that fixed payment.

[Yonnie3]

16. It got worse

I got the rate information on my Medicare supplemental policy. It is going up 10% during 2017.

I also looked back at my auto insurance and see that it jumped 20% when I turned 65. That's the safe driver rate. I have a squeaky clean driving record.

I went and took a look at the current CPI table:

Item increases I'm concerned about:

Medical Care Commodities 5.0%
Rent of Primary residence 3.8%
Medical Care Services 4.1%

and so on. These are more current than the ones used for our 0.3% increase. At the top of the table it shows an overall increase of 1.6% which is what I believe our COLA is based on. If I spend 1/3 of my income on items which go up 4% for inflation and 6% because of an increase in age my cost of living just went up 3.3%

The table is at http://www.bls.gov/news.release/cpi.t01.htm

I recall there were some proposals to change how the COLA for SS was figured. I'm sure it wouldn't be to our benefit.

[PoindexterOglethorpe]

18. I am horrified to see how many have only SS for income.

I think we all to readily forget that the costs of all sorts of things rise every year, and too many of us stop working without taking that into account.

For what it's worth, I'm retired. I have SS, a tiny pension which is about a third of what it should be thanks to that company declaring bankruptcy and shifting its pension obligation to the PBGC, and savings that generate more than half of my income.

I'm also on Medicare, with an Advantage plan. Mine is completely covered by my Medicare parts B and D, so I have no additional out of pocket expense for them. I also have the good fortune to be exceedingly healthy, so I don't have much in the way of medical costs.

I know all too well that things like that could easily change for me.