A recent study out of the Mount Sinai School of Medicine in New York City found that saving enough money to cover end-of-life health care costs is a challenge for many older Americans. Using data from the Health and Retirement Study, it was revealed that the average out-of-pocket amount spent on health care in the last five years of life between 2002 and 2008 was nearly $39,000, with 75 percent of households spending $10,000 or more.
Due to the uncertainty of future health care costs, PRC Executive Director Olivia S. Mitchell notes, “To be 90 percent sure your expenses [at the end of life] will be covered, you would need about $400,000, plus the cost of purchasing Medigap.”
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The Wharton School
