With both health care costs and life expectancy continuing to rise, many Americans are forced to commit more of their financial resources to health care plans. One solution growing in popularity is concierge medicine.
Through a membership program, concierge medicine allows patients to have unfettered access to their primary care physician. Patients are able to make personal calls to their doctor, receive house calls and communicate via email about ongoing conditions.
Typically, concierge practices come with a hefty price tag, but currently there are an estimated 5,500 concierge medicine practices with about two-thirds charging less than $135 per month, on average. Doctors who participate in concierge medicine take on fewer patients, with many taking on only 10 percent of the patients that traditional doctors treat.
Many patients participating in concierge medicine find that they benefit from the personal attention given to them by their concierge doctors. There is more focus on long-term diagnosis, individual lifestyle issues and discussion of preventative care plans, which can impact the bottom dollar of healthcare costs.
Whether you choose to participate in a concierge medicine program or plan to stay with the traditional health care model it is important to financially prepare for the increasing costs of health care. According to the latest retiree health care costs estimate calculated by Fidelity Benefits Consulting, a 65-year-old couple retiring this year is estimated to need $220,000 to cover medical expenses throughout retirement.
By making savvy financial decisions, many retirees are finding it possible to participate in a concierge medicine plan by setting money aside in a financial product such as a fixed indexed annuity.
With FIAs, your money has the ability to grow tax free, only taxed at time of distribution; your principal is protected; and will never decline in value. The guaranteed income from a fixed indexed annuity could be used to supplement the membership costs of concierge medicine.
Set yourself up for a healthier retirement by making healthy financial decisions.