Rising health costs, coverage changes fuel concerns for older adults as election nears
Costs strain retirement budgets
Barbara Weigand, who lives in North Canton, Ohio, says she saved carefully and stayed healthy while preparing for retirement. Now, she is searching for new coverage while enrolled in a Medicare Advantage plan.
Medicare enrollment brings choices
Medicare’s open enrollment period began in mid-October. Enrollees are facing changes set to take effect in 2027, while weighing whether another plan could better meet their care needs at lower cost. Juliette Cubanski, director of KFF’s program on Medicare policy, said the period gives people a chance to review their coverage and consider whether better options are available.
Caregiving adds household expenses
An AARP report released Wednesday found family caregivers spend nearly 60% more supporting a relative or friend than they did five years ago. Average annual spending reached $11,508, up from $7,242 in 2021.
Benefits and future funding concerns
The Social Security Administration announced a 3.6% cost-of-living adjustment beginning in 2027. It amounts to $75 more per month for nearly 72 million people receiving Social Security benefits and about 7.3 million Supplemental Security Income beneficiaries. In September, the administration said all 50 states would join a program intended to provide most-favored-nation pricing for some Medicaid drugs, lowering net prices of selected medicines to levels paid in certain other countries.
Key points
- Weigand says her new medical expenses exceed what her monthly income can afford.
- Medicare enrollees face coverage changes scheduled to take effect in 2027.
- Family caregivers spend an average of $11,508 a year, nearly 60% more than five years ago.
- Social Security’s trust funds are projected to fall short of full benefits beginning in 2034.