TL/DR –
The cost of healthcare services and therapies is a major concern for older adults, according to a poll by the University of Michigan’s National Poll on Healthy Aging, with over half of the 3,300 respondents expressing concern about the cost of medical care, long-term care, and prescription drugs. Financial pressures are exacerbated by rising costs of housing, food, and other essentials, and by the lack of coverage for certain services by traditional Medicare. A third of people aged 65 or older reported difficulty paying for healthcare expenses, with one in seven spending a quarter or more of their monthly budget on healthcare, and 17% forgoing needed care in the past year due to financial reasons.
Health Care Costs a Major Concern for Older Adults
Health care costs weigh heavily on the minds of older adults, creating anxieties around affordability. These concerns are especially pertinent considering the escalating costs of essential needs like housing and food.
A study by the University of Michigan’s National Poll on Healthy Aging highlights these concerns. The top three areas of anxiety among older adults related to the cost of medical care, long-term care, and prescription drugs. The cost of health insurance, Medicare, and dental care were also significant worries. This pattern clearly indicates that financial issues dominate the fears of older adults, even more so than social isolation or age discrimination.
Given this, nation’s leaders must address these health care costs effectively. This especially vital as a significant portion of seniors are living below the federal poverty level or relying solely on Social Security payments. The Commonwealth Fund’s 2023 Health Care Affordability Survey revealed that nearly a third of people 65 or older reported difficulty paying for health care expenses. These costs include premiums for Medicare, medication costs, and other expenses associated with receiving medical services.
As aging individuals are at a higher risk of illness and disability, they are likely to encounter higher health care expenses, which can be difficult to manage on a fixed income. For instance, in 2022, seniors on Medicare spent an average of $7,000 on medical services.
Long-term care options, such as assisted living or nursing homes, are another huge financial burden for older adults. According to Genworth’s latest survey, the median annual cost of a semi-private room in a nursing home was $104,000 in 2023, while the cost of assisted living averaged $64,200. Many older adults are unable to afford these essential care services out-of-pocket.
There are some relief measures available, like the programs covering Medicare out-of-pocket costs. The Area Agency on Agency, State Health Insurance Assistance Program, and benefits enrollment centers are some organizations assisting seniors locally. Older adults can check their eligibility for these programs using the Eldercare Locator.
Despite the financial challenges, some relief is in sight. The 2022 Inflation Reduction Act allows for Medicare to negotiate prescription drug prices and caps out-of-pocket costs at $3,800 for most beneficiaries. This cap will be reduced to $2,000 next year. This measure has already saved thousands of dollars for those who were previously burdened with high drug costs.
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