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46 Don’t Make Me Say I Told You So
These costs must be borne by the person receiving the care
or by their loved ones. According to the National Underwriting
Company, “Many of them mistakenly believe that Medicare will
cover those expenses. But family members of the elderly patient
quickly find out that there is no Medicare coverage for long-term
7
custodial nursing home care.” In fact, not only does Medicare
not cover the cost of long-term care, but a study by the Kaiser
Family Foundation says that for the average American retiree,
Medicare does not cover 55% of healthcare expenditures. 8
These and other costs for medical care are some of the main
obstacles to retirees enjoying a long and prosperous retirement,
in addition to the strain felt during a volatile economy. According
to a study published by the journal Health Affairs, 55% of all
personal bankruptcies in the United States occurred at least in
part due to medical expenses. 9
Summary
► Rising healthcare costs pose a significant risk to
retirement security.
► Even with medical insurance and Medicare, retirees face
major out-of- pocket expenses.
► Medicare does not cover costs for long-term care.
Chapter 2: You’ll Need More Money Than You Think
