Healthcare Costs Continue to Increase

Photo via Flickr user S_Falkow

BY:

Despite President Obama’s possibly unconstitutional overhaul of the healthcare industry, medical rates are still expected to increase exponentially for retiring couples, according to a projection released by Fidelity Investments.

The Associated Press reports:

The estimated $240,000 that a newly retired couple will need to cover health care expenses reflects the typical pattern of projected annual increases. The Boston-based company cut the estimate for the first time last year, citing President Barack Obama's health care overhaul. Medicare changes resulting from that plan are expected to gradually reduce many seniors' out-of-pocket expenses for prescription drugs.

But Fidelity says overall health care cost trends are on the rise again, so it's raising its cost estimate from last year's $230,000 figure.

"As long as health care cost trends exceed personal income growth and economic growth, health care will still be a growing burden for the country as a whole and for individuals," says Sunit Patel, a senior vice president for benefits consulting at Fidelity, and an actuary who helped calculate the estimate.

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