Nov

19

Retiree drug costs

Posted by cameron

November 19, 2007 |

Medco recently released the results of a retiree survey into the impact of rising healthcare and prescription drug costs on their lives. I guess the results are similar to other surveys showing a lack of preparedness for retirement in general. It shouldn’t be a surprise that many are struggling since even working folks are feeling the pinch. Here are a few sound bites from the survey:

  • 33% say they spend far more on healthcare than they planned for.

  • 55% hadn’t planned at all.

  • 49% never assess the impact on their lives.

  • 25% of middle income retirees spend 10% of income on prescription drugs.

  • Only 48% use all the tools at their disposal to decrease that cost.

  • 24% don’t use any means to reduce the cost.

  • 76% are aware of cost savings with mail order drugs but only 40% use it.

  • Only 15% of retirees choose insurance for drug coverage; mostly it’s chosen on premium.

Of course the cost control options are:

  • Generic drugs reduce the drug cost.

  • 90 day mail order supplies reduce the co-payment cost.

  • Align your Medicare Part D plan coverage to your needed drugs.

Medco have a nifty little tool for determining generic drug equivalents. You can give it a spin here. It goes without saying that you should consult your doctor before changing drugs.


Comments

1 Comment so far

  1. Insurance » Retiree drug costs on November 19, 2007 7:17 am

    […] Empty Nest wrote an interesting post today on Retiree drug costsHere’s a quick excerpt Medco recently released the results of a retiree survey into the impact of rising healthcare and prescription drug costs on their lives. I guess the results are similar to other surveys showing a lack of preparedness for retirement in general. It shouldn’t be a surprise that many are struggling since even working folks are feeling the pinch. Here are a few sound bites from the survey: 33% say they spend far more on healthcare than they planned for. 55% hadn’t planned at all. 49% never […]

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