Retired boomers "surprised" at the cost of healthcare

A new survey, conducted by Bankers Life and Casualty Company Center for a Secure Retirement, asked 300 retirees between ages 55 to 75 with an annual household income between $25,000 and $75,000, a variety of open-ended questions about what they have learned since they stopped working and what challenges they have faced.

Many retirees say their health itself had become a challenge.  While some felt their health had improved since leaving the workforce, nearly one in five (18 percent) said they had dealt with unexpected health issues.

The high costs of medical expenses were also a big issue.  When asked what costs more in retirement than they thought it would, more than half (55 percent) of respondents indicated that healthcare is costing them more than anticipated.  And if given the opportunity to go back in time, retirees say they would make saving for their healthcare costs a much bigger priority.

While many have experienced increased costs in every aspect of life, here’s a look at the top five expenses that were higher than expected among America’s retirees:

•   Healthcare – 55%
•   Groceries – 41%
•   Car/Transportation – 38%
•   Prescription Drugs – 33%
•   Utilities – 22%

Retirees polled had many goals beyond the stereotypical ideas of retiring to Florida, seeing their grandchildren and traveling the world.  When asked what goal they hope to accomplish in the next three years, more than one in three (36 percent) have a personal goal that focuses on their health and wellness.  While some people wanted to travel, many retirees wanted to be in better health (21 percent) or lose weight and be more physically fit (15 percent).

“Many times when people think about retirement planning, they only think about money,” said Chris Campbell, vice president of marketing and business development at Bankers Life and Casualty Company, a national life and health insurer.  “While that is important, don’t over look your health.  Living a healthy lifestyle keeps healthcare costs down and the ability to fully enjoy your retirement years.”

Here’s a look at the top five goals today’s retirees hope to accomplish in the next three years:

1.  Travel 
2.  Maintain or Improve Health
3. Lose Weight/Get Physically Fit
4.  Home Improvements
5.  Spend More Time with Family

The Bankers Life and Casualty Company Center for a Secure Retirement’s survey series Listening to Middle-Income Americans was conducted in April 2012 by the independent research firm The Blackstone Group. Excerpts from the report can be viewed at www.CenterForASecureRetirement.com

A nationwide sample of 300 retirees ages 55 to 75 who have an annual household income of between $25,000 and $75,000 participated in the Internet-based survey.  Significant sub-sample differences were tested at the 95% confidence levels.

The Bankers Life and Casualty Company Center for a Secure Retirement studies and consumer awareness campaigns provide insight and practical advice for how everyday Americans can achieve financial security during retirement.

Established in 1879 in Chicago, Bankers Life and Casualty Company focuses on the insurance needs of the retirement market.

What's wrong with this picture?

Having worked in two Philadelphia area hospitals for several years, I can honestlty say that the new report from Thomson Reuters is rather spot on.

The study indicates that hospital employees have 10 percent higher healthcare costs than the general population and are less healthy. The average annual healthcare cost for a hospital employee and his or her dependents was $4,662, outpacing the general population by $538.

The report also found hospital employees were also more likely to be diagnosed with chronic medical conditions, such as asthma or diabetes.

"Ideally, the healthcare workforce would be a model for healthy behaviors and the appropriate use of medical resources," said Dr. Raymond Fabius, chief medical officer for the Healthcare business of Thomson Reuters. "Unfortunately, our data suggests that the opposite is true today. Hospitals that tackle this issue can strengthen their business peformance and community service."

It seems that hospital workers are among the unhealthiest of us all. And—hold on to your stethoscopes--there's actual science to back up that claim. A new Thomson Reuters Healthcare study says that hospital workers not only are generally sicker than the general population, but that they spend about 10% more on healthcare services and consume more of those services.

The study analyzed the health risk and utilization of 1.1 million hospital workers and compared them with 17.8 million health plan members across all industries nationwide.

Among the interesting nuggets:

Hospital employees and their dependents saw their physicians less often than the general public, but were 22% more likely to make an ER visit and spent 18% more time in the hospital if they went there.

The average annual cost for healthcare for hospital workers and their dependents was $4,662, or $538 more than the general population.

Hospital workers, the study authors speculate, are more likely to access expensive healthcare services because they are so convenient, and they may access care more frequently because they are more in tune with their symptoms, and the disparities do not result from hospital workers' increased exposure to communicable diseases.

A hospital or health system with 16,000 employees would save an estimated $1.5 million annually in medical and pharmacy costs for each 1% reduction in health risk.

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