End of Life Expenses

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JPH
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End of Life Expenses

Post by JPH » Thu Oct 18, 2018 11:24 am

A study was just published in the American Journal of Medicine ((2018)131:1187-1199) on the cost at 2 and 4 years after being newly diagnosed with cancer. They prospectively followed 9.5 million people. Results are very sobering. Don't underestimate healthcare costs in your retirement plan. Quoting from their abstract:
RESULTS: Across 9.5 million estimated new diagnoses of cancer from 2000-2012, individuals averaged 68.6±9.4 years with slight majorities being married (54.7%), not retired (51.1%), and Medicare beneficiaries (56.6%). At year+2, 42.4% depleted their entire life’s assets, with higher adjusted odds associated with worsening cancer, requirement of continued treatment, demographic and socioeconomic factors (ie, female, Medicaid, uninsured, retired, increased age, income, and household size), and clinical characteristics (ie, current smoker, worse self-reported health, hypertension, diabetes, lung disease) (P<.05); average losses were $92,098. At year+4,financial insolvency extended to 38.2%, with several consistent socioeconomic, cancer-related, and clinical characteristics remaining significant predictors of complete asset depletion.
Here is a link to the article, but I'm not sure it will work without a subscription.
https://www.amjmed.com/article/S0002-93 ... 6/fulltext
While the moments do summersaults into eternity | Cling to their coattails and beg them to stay - Townes Van Zandt

HEDGEFUNDIE
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Re: End of Life Expenses

Post by HEDGEFUNDIE » Fri Oct 19, 2018 3:37 am

An “average loss of $92k” would not faze a Boglehead.

ncbill
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Re: End of Life Expenses

Post by ncbill » Fri Oct 19, 2018 7:13 am

How long do you want to live and with what quality of life?

Most people never bother to prepare an advanced directive, so by default have everything done to them.

Which can extend one's life by months or years in an expensive nursing facility.

OTOH, I am currently caregiver for a relative diagnosed just last month with terminal cancer.

Since they chose Hospice I moved them from a nursing home to assisted living near me (cost: less than half of the nursing home)

Hospice, part of their Medicare benefit, covers all medical equipment and nearly all medications.

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samsoes
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Re: End of Life Expenses

Post by samsoes » Fri Oct 19, 2018 7:20 am

That's what money is for. You can't take it with you.
"Happiness Is Not My Companion" - Gen. Gouverneur K. Warren. | (Avatar is the statue of Gen. Warren atop Little Round Top @ Gettysburg National Military Park.)

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willthrill81
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Re: End of Life Expenses

Post by willthrill81 » Fri Oct 19, 2018 9:55 am

This further demonstrates that Medicare alone cannot be expected to pay for 100% of your medical expenses beyond the age of 65. IIRC, a recent study found that those receiving Medicare benefits can be expected to pay around $250k in medical expenses over the course of their lifetime. Compare this to the $210k total net worth of median 65-69 year olds, and you see that many are and will be in a very difficult position.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

letsgobobby
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Re: End of Life Expenses

Post by letsgobobby » Fri Oct 19, 2018 9:59 am

Bounce the last check. Isn't that the mantra?

2015
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Re: End of Life Expenses

Post by 2015 » Fri Oct 19, 2018 12:30 pm

willthrill81 wrote:
Fri Oct 19, 2018 9:55 am
This further demonstrates that Medicare alone cannot be expected to pay for 100% of your medical expenses beyond the age of 65. IIRC, a recent study found that those receiving Medicare benefits can be expected to pay around $250k in medical expenses over the course of their lifetime. Compare this to the $210k total net worth of median 65-69 year olds, and you see that many are and will be in a very difficult position.
Whole lot of scare tactics when it comes to health care LTC costs in retirement. Here's Kitces' recent and helpful blog post referencing and expounding on a Vanguard/Mercer study on health care costs, including average LTC costs:

https://www.kitces.com/blog/vanguard-me ... ojections/

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