Older adults are deeply concerned about the cost of healthcare services and their ability to afford them due to rising expenses for essentials such as housing, food, and healthcare itself. A survey by the University of Michigan’s National Poll on Healthy Aging found that five of the top 10 issues of concern for older adults were cost-related, including the cost of medical care, long-term care, prescription drugs, health insurance, and Medicare.
The high cost of healthcare is a significant worry for many seniors, with nearly a third reporting difficulty paying for healthcare expenses. One in 7 older adults reported spending a quarter or more of their average monthly budget on healthcare, and 44% spent between 10% and 24%. Financial scams and fraud were also a concern for many seniors.
Older adults have good reason to worry about the cost of healthcare. One in 10 seniors have incomes below the federal poverty level, and about 1 in 4 rely exclusively on Social Security payments. Even though inflation has moderated, prices haven’t come down, putting a strain on seniors living on fixed incomes.
Traditional Medicare doesn’t cover several services that millions of older adults need, such as dental care, vision care, or help at home from aides. While private Medicare Advantage plans offer some coverage for these services, benefits are frequently limited.
The high cost of healthcare, particularly long-term care options like nursing homes and assisted living, is a significant burden for many older adults. In 2023, the median annual cost of a semiprivate room in a nursing home was $104,000, while assisted living came to $64,200, and a week’s worth of services from home-health aides averaged $75,500.
Many older adults simply can’t afford to pay for these long-term care options or other major medical expenses out-of-pocket. Older adults can check their eligibility for programs that help with Medicare out-of-pocket costs by contacting their local Area Agency on Agency, State Health Insurance Assistance Program, or benefits enrollment center.
Persuading older adults to ask for help can be challenging, as many seniors may feel prideful about their ability to pay their bills. However, there is help available for seniors who qualify for Medicare Savings Programs, Medicaid and Medicare dual coverage, or other types of assistance with household costs such as food stamps.
The Inflation Reduction Act of 2022 offers some relief for older adults with high prescription drug costs. The act allows Medicare to negotiate the price of prescription drugs for the first time, and out-of-pocket costs for medications will be limited to a maximum $3,800 for most beneficiaries this year, with a $2,000 cap on out-of-pocket drug costs taking effect next year.
The high cost of healthcare is a significant issue for older adults, and it will become an even bigger issue in the coming years due to the burgeoning aging population. It is important for older adults to be aware of the resources available to them and to seek help when needed.
