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IMPROVING CLIENTS’ HEALTH CARE They can be surprised by high medical bills or
FINANCIAL LITERACY overpay for services.
When discussing alternatives for the gap period Encouraging clients to shop for certain health
before Medicare, it’s important for advisers to care services can save them thousands of dollars
realize that clients who have only had employer- in out-of-pocket costs. This and other advice can
provided coverage and then choose one of the help make the dream of early retirement a reality
other options during early retirement may require for those who are working only to maintain
education about how to use their plan. One of health care coverage.
the downsides of employer-provided coverage is
that it can isolate people from how health care HELPING CLIENTS TO CONSIDER THEIR OPTIONS
costs really work. For example, many consumers The most important takeaway here is that clients
are unaware that the cost of a hip replacement or seeking early retirement often must shift their
other outpatient surgery is typically significantly perspective on what they truly need in the area
lower at a surgical clinic compared to a hospital. of health care for those gap years. By helping
This can cause problems if clients who are healthy clients to de-prioritize having abundant
retiring before they are eligible for Medicare coverage no matter what and instead encour-
choose coverage with a higher deductible or out- aging them to view insurance as a backstop,
of-pocket costs, and then consume health care advisers can help them overcome the belief that
services the way they always did when coverage they must continue working strictly for health
was lower-deductible and only included copays. insurance. ■

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