Affluent Americans concerned about healthcare costs in retirement

Posted by Emily Kubis on Fri, Jul 13, 2018 @ 09:07

How financial advisors can help

According to a new study by Nationwide, 75 percent of affluent, older adults list out-of-control healthcare costs as one of their top fears in retirement, and 64 percent of future retirees say they are “terrified” of what healthcare costs may do to their retirement plans.

As healthcare prices continue to skyrocket, from premiums to procedural costs, this trend has been on the rise, and financial advisors are taking note.

More and more advisors and wealth managers are incorporating a healthcare component to their retirement advice, providing not just a cushion for unexpected healthcare expenses, but also assisting clients in finding the most cost-effective strategy for the best coverage possible.

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Tags: Bernard Health, retirement, healthcare costs, financial planner, financial advisors, healthcare extension, medicare costs

Are short-term health insurance plans a good fit for your clients?

Posted by Ryan McCostlin on Fri, Jul 06, 2018 @ 08:07

Check out this article on healthcare costs in Financial Advisor:

As health-care costs continue to rise and become a more substantial financial concern for Americans at every income level, financial advisors are increasingly being asked to weigh in on strategies for insurance and medical costs.

One option that advisors may be asked to weigh in on is the short-term medical plan. These plans are significantly cheaper than comprehensive coverage—premiums are often a fraction of the cost of traditional coverage. This is because they cover a lot less.

More Americans are becoming aware of short-term plans as an option because their coverage costs are rising so quickly. Further, President Trump’s administration has issued guidance to extend these plans and make them more competitive options against traditional, comprehensive coverage.

In some cases, choosing a short-term strategy can help your client avoid thousands in unnecessary premium costs. In other cases, selecting a short-term plan may expose your client to significant financial liability.

In either case, having a good grasp on these options and their differences allows financial advisors to help clients protect themselves and make the best decisions for medical coverage.

Here’s what financial advisors need to know about short-term plans, the risks of purchasing them and a few situations where they may be a good fit for your clients.

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Tags: short-term health insurance, healthcare advice, financial advisors, healthcare extension, wealth managers, retirees

How financial advisors can advise clients on nontraditional coverage

Posted by Emily Kubis on Wed, Jun 20, 2018 @ 16:06

Three things to know

Have your clients asked for advice on health coverage? As healthcare costs continue to skyrocket and become cause for concern for Americans at every income level, more financial advisors are recognizing an opportunity to provide another level of service and advice.

When it comes to health coverage, there are numerous strategies your clients may consider. While most are probably covered under a traditional workplace plan, there are nontraditional options that might be a good fit for clients in different situations. For example, if you have clients who are self-employed or retiring before Medicare eligibility, they may need a different solution.

Even clients who have access to a traditional, comprehensive workplace plan may see less value in this type of coverage as premium costs rise into the hundreds and thousands of dollars per month.

Here are three types of nontraditional coverage your clients may consider. While advising on healthcare isn’t typically financial advisor’s area of expertise, having a working knowledge on these options will allow you to position your firm as providing comprehensive advice. Want to offer your clients personalized healthcare advice? Bernard Health provides a Healthcare Extension to financial practices across the country that allows advisors to provide insurance recommendations, enrollment assistance, medical bill auditing and more. Learn more.

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Tags: Bernard Health, retirement, short term plan, healthcare costs, direct primary care, financial planner, financial advisors, healthcare extension, medicare costs

Why healthcare planning in your retirement plan is key

Posted by Emily Kubis on Fri, Jun 15, 2018 @ 09:06

Medicare doesn’t cover everything

A new study shows half of retirees never calculated the cost of healthcare in retirement, and four in ten retirees say their expenses are higher than they expected.

The 2018 Retirement Confidence Survey illustrates why planning ahead for healthcare is so important, and why more and more financial advisors are integrating healthcare planning services into their firm’s value proposition.

Here are three Medicare misconceptions that could affect your wealth management clients.

First, many consumers do not realize that Medicare has costs associated with it, including premiums, copays, and deductibles, as well as prescription drug costs.

These costs should be considered “expected expenses,” and worked into comprehensive financial planning.

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Tags: Bernard Health, retirement, healthcare costs, financial planner, financial advisors, healthcare extension, medicare costs

How to help early retirees maintain health coverage

Posted by Ryan McCostlin on Fri, Jun 08, 2018 @ 06:06

Check out this article on healthcare costs in Financial Advisor:

Through inheritance, sale of a business or just old-fashioned careful financial planning, some Americans are in a position where they're giving serious consideration to retiring “early.” I put early in quotations because, for practical purposes, this just means someone is retiring before Social Security benefits are traditionally taken and before most people are eligible for Medicare at age 65.

Medicare isn't perfect, but for most people, it's an important milestone because it often provides more comprehensive healthcare coverage at a lower cost than is available to most Americans who don't have access to employer-based coverage. Furthermore, most people can get excellent coverage through Medicare without being subject to medical underwriting, which could include questions about pre-existing conditions or requests for medical records.

However, most clients retiring before age 65 won’t be eligible for Medicare. So a key factor in decision-making will be how to handle health-care costs and coverage in the gap years.

Here’s how financial advisors can help.

Things To Consider:

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Tags: Medicare Advice, healthcare advice, financial advisors, healthcare extension, wealth managers, ThinkAdvisor, retirees

High-earning small business owners can save thousands by switching to Medicare

Posted by Ryan McCostlin on Mon, May 14, 2018 @ 08:05

Check out this article on healthcare costs in Financial Advisor:

With healthcare costs rising much faster than inflation, planning ahead for health-care expenses has been increasingly material to financial advising. But integrating care expenses into retirement planning is only part of the puzzle.

Ensuring that clients not only have enough in their retirement plan to cover healthcare expenses, but also have the most cost-effective strategy for their health coverage, is part of comprehensive financial planning.

 

In this column, I’ll explain how advisors can help clients save up to $12,000 annually by transitioning to Medicare. This is a situation that we see often for professionals who are partners or business owners in their organization, and nearing retirement age. For this example, we’ll use a client who works as an attorney and firm partner.

I’ll cover why transitioning off the group plan is often the right strategy, what Medicare choices are available, and how asking the right questions can uncover the best, most cost-effective coverage option for your client.

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Tags: Medicare Advice, healthcare advice, financial advisors, healthcare extension, wealth managers, ThinkAdvisor

Financial planning clients are making a big healthcare mistake

Posted by Emily Kubis on Mon, May 07, 2018 @ 07:05

Retirees aren't prepared for healthcare costs

According to a new survey by the NHP Foundation, more than a third of Baby Boomers said they are most worried about affording healthcare in retirement. Sixty-five percent of those surveyed said that they have not budgeted for unforeseen health-related expenses.

This is a big mistake, as healthcare costs for a couple retiring this year are estimated at $275,000, not including long-term care expenses.

This trend presents a clear opportunity to financial advisors. By building healthcare  into clients’ retirement financial planning, advisors can provide peace of mind and a competitive differentiator.  By positioning themselves as comprehensive advisors, advisors are able to win new business and retain key clients.

How can financial advisors build out healthcare planning tools?

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Tags: Bernard Health, retirement, healthcare costs, financial planner, financial advisors, healthcare extension, medicare costs

How to use healthcare advice as a competitive differentiator

Posted by Emily Kubis on Mon, Apr 30, 2018 @ 07:04

How to help financial advisor clients save money

As healthcare costs continue to skyrocket and affect Americans near or in retirement, financial advisors are increasingly integrating healthcare advice into their practices.

From Medicare costs in retirement to paying for long-term care, healthcare is a key part of a comprehensive financial plan.

(More: Healthcare costs are affecting retirees—financial advisors can help)

Rather than develop the healthcare expertise in house, many advisors are partnering with outside firms such as Bernard Health to offer this advice. Learn more about the Healthcare Extension through Bernard Health here.

If this is the approach your firm has taken, here are three strategies for success, and getting the most ROI out of your investment by using it as a competitive differentiator.

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Tags: Bernard Health, retirement, healthcare costs, financial planner, financial advisors, healthcare extension, medicare costs

Healthcare costs are affecting retirees—financial advisors can help

Posted by Emily Kubis on Fri, Apr 20, 2018 @ 08:04

How to help financial advisor clients save money

Healthcare costs in retirement are a huge concern for older Americans, and financial advisors are uniquely positioned to address this area of need. According to Fidelity Benefits Consulting, a 65-year-old couple retiring this year will spend $275,000 on healthcare, not including long-term care expenses.

This number has been on the rise for years, which is why smart planners are increasingly building healthcare planning into their clients’ financial goals and portfolios. But aside from asset management, there are many other intersections of healthcare and finance where consulting services are sorely needed but hard to find. 

Three areas advisors may not have considered as affecting their clients’ finances are yearly Medicare costs, high-dollar medical bills, and HSAs. Planners can help clients make more informed, cost-effective and tax-advantaged choices by partnering with insurance advisors, national consulting firms, or building expertise in-house.

Providing advisory services in these areas is to the benefit of both your clients and your practice. Here are three areas you may not have considered when it comes to retirement and healthcare costs, and how you can help your clients address them.

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Tags: Bernard Health, retirement, healthcare costs, financial planner, financial advisors, healthcare extension, medicare costs

How Bernard Health reduces financial advising clients’ drug costs

Posted by Emily Kubis on Mon, Apr 09, 2018 @ 07:04

How to help your financial advising clients save money

As healthcare costs continue to rise, financial advisors and wealth managers are increasingly recognizing the need for their practices to address healthcare planning from a financial perspective.

According to the most recent estimate from Fidelity Benefits Consulting, a 65-year-old couple retiring this year will spend $275,000 on healthcare, not including long-term care expenses.

This is up by $15,000 from 2016, and as healthcare costs continue to rise, this number is likely to increase substantially every year.

Because of this, more advisors are recognizing that healthcare plays a role in the advice they give their clients around retirement and investing.

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Tags: Bernard Health, retirement, financial planner, financial advisors, healthcare extension, medicare costs

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