Retirement insights from a Colorado PERA perspective

A distant view shows a mountainous landscape with sloping peaks, green trees in the foreground, and a cloudy sky above.

<h4 class="wp-block-heading"><a href="https://coloradosun.com/2022/12/06/colorado-import-prescription-drugs-canada/" target="_blank" rel="noreferrer noopener">Colorado Just Released the List of Prescription Drugs It Wants to Import From Canada | The Colorado Sun</a></h4>



The State of Colorado is seeking to save residents money on prescription drugs by importing more than 100 medications from Canada. The state submitted a formal application to the federal government that lists 112 drugs with an average cost savings of 64 percent over the U.S. retail price. If approved, that could result in savings of $53 million to $88 million per year.



<h4 class="wp-block-heading"><a href="https://www.napa-net.org/news-info/daily-news/bicameral-bipartisan-retirement-bill-introduced" target="_blank" rel="noreferrer noopener">Bicameral, Bipartisan Retirement Bill Introduced | National Association of Plan Advisors</a></h4>



While the fate of the major retirement legislation package known as SECURE Act 2.0 remains uncertain, lawmakers continue to introduce new retirement-related bills. U.S. Sen. John Hickenlooper of Colorado is one the legislators behind the recently introduced Retirement Savings for Americans Act, which aims to increase access to retirement savings accounts for those who don’t currently have them.



<h4 class="wp-block-heading"><a href="https://www.kiplinger.com/personal-finance/7-financial-steps-to-take-at-the-end-of-the-year" target="_blank" rel="noreferrer noopener">7 Financial Steps to Take at the End of the Year | Kiplinger</a></h4>



With the year winding down, it’s a good time to do a financial checkup and make sure all your accounts are in order. Here are some helpful steps to consider, from taxes and investments to retirement planning and emergency savings.



<h4 class="wp-block-heading"><a href="https://smartasset.com/estate-planning/estate-planning-trends" target="_blank" rel="noreferrer noopener">Middle-Aged Americans Aren’t Planning Their Estates. Here’s How to Fix That. | SmartAsset</a></h4>



While you’re doing a year-end financial check-up, you may consider doing some estate planning, if you haven’t already. A recent survey found the number of middle-aged adults with a will dropped to an all-time low in 2021. While estate planning can be daunting, there are a few common documents that will be a big help to your loved ones.



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News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

News You Should Know: Colorado Lists Drugs It Aims to Import From Canada

<h4 class="wp-block-heading"><a href="https://www.cnbc.com/2022/06/26/not-all-secure-2point0-proposals-in-the-house-and-senate-are-the-same.html" target="_blank" rel="noreferrer noopener">Some ‘Secure 2.0’ Retirement Proposals in the Senate Look Different From the House Version. Here are Key Provisions Under Consideration | CNBC</a></h4>



Lawmakers in Washington, DC have introduced a number of different retirement-related proposals this year, pieces of which may end up in a larger “Secure Act 2.0” bill. Here are some of the key provisions under consideration.



<h4 class="wp-block-heading"><a href="https://www.pbs.org/newshour/show/mark-cuban-aims-to-lower-prescription-drugs-prices-with-online-pharmacy" target="_blank" rel="noreferrer noopener">Mark Cuban Aims to Lower Prescription Drug Prices With Online Pharmacy | PBS News Weekend</a></h4>



Health care costs — and especially prescription drug prices — are a major expense for retirees, and many of those costs have been rising for years. Billionaire Mark Cuban is aiming to tackle the problem with his own online pharmacy, which offers over 100 generic medications at a discount.



<h4 class="wp-block-heading"><a href="https://www.barrons.com/articles/preretirement-plan-finances-stress-test-banks-51656107478" target="_blank" rel="noreferrer noopener">How Retirees-to-Be Can Stress Test Their Finances, Just Like the Big Banks | Barron’s</a></h4>



Do you have enough money saved up to make it through a possible recession? The Federal Reserve puts banks through a stress test every year, and it’s a good idea to do the same for your personal finances. If you’re approaching retirement age, here are some tips for making sure you’re in good shape.



<h4 class="wp-block-heading"><a href="https://www.usatoday.com/story/money/personalfinance/retirement/2022/06/28/retirement-advice-from-retirees/50419833/" target="_blank" rel="noreferrer noopener">Retirement Advice From Actual Retirees, Tested in the Real World | USA Today</a></h4>



A recent survey by the Employee Benefit Research Institute asked retirees about their financial planning, priorities, concerns and reflections. One of the main takeaways? A large majority of retirees say they regret not starting to save for retirement earlier.



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News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

News You Should Know: Key Provisions of House, Senate Retirement Proposals

In this story:



<ul><li>Retirees enrolled in PERACare pre-Medicare plans will see higher monthly premiums in 2022</li><li>PERACare plans operate under different circumstances than plans on the individual marketplace</li><li>PERA is working to lower costs wherever possible</li></ul>



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Colorado Gov. Jared Polis announced last month that Colorado residents can expect to see <a href="https://stateofreform.com/featured/2021/10/colorado-reinsurance-savings/" target="_blank" rel="noreferrer noopener">big savings on individual insurance premiums in 2022</a> — about 24 percent, on average. That’s great news for people who don’t receive health insurance through an employer and have to purchase coverage on their own. For retirees enrolled in PERACare’s pre-Medicare plans, it likely came as a surprise that their premiums would instead be going up next year.



PERACare plans operate under slightly different circumstances than those on the individual marketplace, which in Colorado is called <a href="https://connectforhealthco.com/" target="_blank" rel="noreferrer noopener">Connect for Health Colorado</a>. While those differences can have an impact on a plan’s premium, there are a number of other important factors to consider when shopping for health insurance.



<h4 class="wp-block-heading">Connect for Health Colorado and PERACare</h4>



Insurance premiums — the amount insurance companies charge each month for coverage — are driven primarily by the cost of services and prescription drugs. Those costs have been rising across the country for years, and premiums have largely followed suit.



Colorado lawmakers have made multiple attempts to rein in premium increases in recent years, but they don’t always apply to all plans. In 2020, the legislature established the state’s <a href="https://doi.colorado.gov/insurance-products/health-insurance/health-insurance-initiatives/reinsurance-program" target="_blank" rel="noreferrer noopener">reinsurance program</a>, which helps cover the cost of expensive claims to keep plan costs down. That program is the key factor in reducing individual premiums for 2022, but it only applies to plans in the individual marketplace and not group plans like those offered by PERACare.



Demographics can also play a big role in the cost of health insurance — think of how a large number of younger people in a group brings down the average age of that group, for example. Insurance plans sold on Connect for Health Colorado are open to the general public and therefore cover people across a wide range of ages and circumstances. PERACare’s pre-Medicare plans, on the other hand, cover only retirees who aren’t yet eligible for Medicare — ages 50 to 64.



Older Americans are more likely to use more medical services than other sections of the population, so plans that only cover aging patients can be more expensive to administer. In addition, the prices for many services, in particular hospital and ER costs, are higher in Colorado than in other areas of the country.



<h4 class="wp-block-heading">What PERA is doing to lower costs</h4>



PERA’s Director of Insurance, Jessica Linart, said PERA understands the challenge of rising health care costs for retirees, and her team negotiates with PERACare insurance carriers to lower costs wherever possible. That can include administrative fees, which are a small portion of the overall cost of a plan. Other costs, like prescription drug prices, can be harder to control because carriers have already negotiated those prices with manufacturers and providers.



One area where PERA can help lower costs is by encouraging retirees to choose less expensive care options.



“PERACare plans have lower copays for higher quality doctors, lower copays for generic drugs versus brand names, and lower costs for outpatient surgeries versus surgeries performed at a hospital,” Linart said. “All of this can help bring down the overall claims costs, which can ultimately lead to lower premiums.”



PERACare plans also cover preventive care at 100 percent and include a fitness center benefit and weight loss programs to help retirees maintain their health, which can reduce overall costs long-term.



<h4 class="wp-block-heading">Other factors to consider</h4>



Premiums aren’t the only cost to consider when shopping for health insurance. Plans can have vastly different out-of-pocket costs like co-pays, coinsurance and deductibles. Then there’s a plan’s out-of-pocket maximum, which is the most a person will pay in a year. There can often be a trade-off with these costs: higher out-of-pocket costs in exchange for lower premiums.



It’s also important to check a plan’s network of providers and formulary, which is the list of covered drugs. Plans will sometimes opt for a small network and formulary to keep prices down. Linart said PERA usually opts for a broader network and formulary, which can be more expensive but provides retirees with more options.



“We encourage retirees to compare their options in PERACare and on the individual marketplace, to find the coverage that best suits their needs for provider and medication access, benefits and monthly premium,” Linart said.



Open enrollment for PERACare’s pre-Medicare and Medicare plans <a href="https://content.copera.org/peracare-working-to-cut-costs-as-medicare-advantage-enrollment-grows/" target="_blank" rel="noreferrer noopener">runs through Nov. 17</a>. Open enrollment for Connect for Health Colorado runs through Jan. 15.

What’s in a Health Insurance Premium? Comparing Retiree Health Care Costs

In this story:



<ul><li>Enrollment in Medicare Advantage plans has grown steadily in recent years</li><li>PERACare is changing providers for PPO Medicare Advantage plans in 2022</li><li>UnitedHealthcare will offer same plan benefits, lower premiums</li></ul>



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More people than ever are enrolled in Medicare Advantage plans, and PERACare is making some changes in 2022 to make its plans more affordable and convenient for retirees.



A <a href="https://www.kff.org/medicare/issue-brief/a-dozen-facts-about-medicare-advantage-in-2020/" target="_blank" rel="noreferrer noopener">data analysis by the Kaiser Family Foundation</a> found that enrollment in Medicare Advantage plans – like those offered by <a href="https://www.copera.org/peracare" target="_blank" rel="noreferrer noopener" class="broken_link">PERACare</a> – has been steadily increasing since the early 2000s. In 2020, nearly 40 percent of all Medicare beneficiaries were enrolled in a Medicare Advantage plan rather than traditional Medicare, KFF found.



Colorado was one of 19 states where more than 40 percent of Medicare beneficiaries were enrolled in a Medicare Advantage plan in 2020.



<h4 class="wp-block-heading">The advantages of Medicare Advantage</h4>



Medicare Advantage plans are offered by private insurers and serve as “all-in-one” or “package” plans. They combine the benefits of Medicare Parts A (hospital insurance) and B (medical insurance) with Part D (prescription coverage) into one comprehensive plan. These plans also usually cover extra services that aren’t covered by original Medicare, like dental and vision and even gym memberships.



While Medicare Advantage enrollees pay a premium on top of the Medicare Part B premium, Medicare Advantage plans may have lower out-of-pocket costs for some services. They also have yearly limits on out-of-pocket spending on services that Part A and Part B cover, while original Medicare doesn’t have any limits.



Medicare Advantage plans differ from Medicare Supplement Insurance, also known as Medigap, which supplements the coverage provided by original Medicare. Medigap plans typically don’t offer as much coverage as Medicare Advantage plans and they don’t include prescription drug coverage. A retiree cannot have both Medigap and Medicare Advantage.



PERACare offers three Medicare Advantage plans for PERA retirees, in addition to four pre-Medicare plans for retirees who aren’t yet eligible for Medicare.



<h4 class="wp-block-heading">Cost-saving changes coming to PERACare</h4>



In 2022, PERACare is making some changes to the providers who administer PERACare’s Medicare Advantage plans. UnitedHealthcare will replace Anthem Blue Cross Blue Shield and Silverscript.



One reason for the change is that UnitedHealthcare is able to offer lower plan premiums than Anthem. The new plans will also combine medical and prescription coverage under one company, making for a more streamlined process for enrollees and their providers.



“We have designed the new UnitedHealthcare plans to mirror the current plans as closely as possible; if there are changes to benefits, they are upgrades, not downgrades,” said PERA Director of Insurance Jessica Linart. “Plus, UnitedHealthcare brings an expanded fitness center benefit with access to more gyms, the Real Appeal weight loss program, and a commitment to delivering our retirees a high level of customer service.”



Retirees enrolled in an Anthem plan will be automatically enrolled in a corresponding UnitedHealthcare plan and recently received a letter in the mail with details on their new, lower premiums. Most copays for the new plans will be the same, though some copays will be lower with UnitedHealthcare. Like Anthem, UnitedHealthcare offers nationwide coverage.



Enrollees in PERACare’s Kaiser Permanente HMO plan will also see a reduction in their premiums for 2022.



PERACare open enrollment began Oct. 11 and retirees will be able to sign up for coverage for the first time, or make changes to their existing coverage through Nov. 17. For more information on the changes on open enrollment, including details on <a href="https://www.copera.org/peracare-working-to-cut-costs-as-medicare-advantage-enrollment-grows" target="_blank" rel="noreferrer noopener">virtual meetings</a>, <a href="https://content.copera.org/peracare-working-to-cut-costs-as-medicare-advantage-enrollment-grows/" target="_blank" rel="noreferrer noopener">click here</a>.

PERACare Working to Cut Costs as Medicare Advantage Enrollment Grows

<a href="https://www.benefitspro.com/2021/07/29/2-retirement-bills-you-should-know-about-secure-2-0-and-cardin-portman-strong-support/" target="_blank" rel="noreferrer noopener">2 retirement bills you should know about: &#8216;SECURE 2.0&#8217; and &#8216;Cardin-Portman&#8217; have strong bipartisan support</a> | Benefits Pro



Two bills at the federal level could tweak a number of retirement-related laws, including changes that simplify plan administration and communication, raising the required minimum distribution age, and raising catch-up contribution limits. Onlookers say the lack of controversial issues in the bills mean that each has a good chance of passing.



<a href="https://apnews.com/article/health-colorado-0ac1f8c09ae087825b7aa605f2b38021" target="_blank" rel="noreferrer noopener">Polis: Colorado program keeps health insurance costs low</a> | AP



Rates on Colorado’s insurance exchange in 2022 will likely look a lot like they do in 2021, according to Gov. Polis. One reason cited for the price stability: the state’s reinsurance program. The program, which began in 2019, reduces the impact that high-cost patients have on the entire insured population. While prices will remain relatively stable across the state, some regions, including Western counties, will see higher costs.



<a href="https://www.copera.org/news-you-should-know-2-retirement-bills-you-should-know-about" target="_blank" rel="noreferrer noopener">Proposed legislation aims to make long-term care insurance more affordable</a> | McKnight’s Senior Living



The cost of long-term care can quickly eat through retiree savings. A new law introduced in the U.S. Senate would allow people to pay for long-term care insurance, which helps cover some of these costs, using money in retirement accounts. This allowance would have a $2,500 annual cap.



<a href="https://www.kiplinger.com/personal-finance/603162/how-are-you-lying-to-yourself-about-money" target="_blank" rel="noreferrer noopener">7 Money Lies We Tell Ourselves</a> | Kiplinger



Money is emotional. This can make it a tough topic to talk about with a partner, parents, or friends. But don’t forget another person for whom talks about money can get tricky: you. Humans are great at avoiding hard truths about money. Read more about these seven common pitfalls.



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News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

News You Should Know: 2 Retirement Bills You Should Know About

<h4 class="wp-block-heading"><a href="https://qz.com/2025569/record-us-retirements-may-hinder-economic-recovery/" target="_blank" rel="noreferrer noopener">Americans aren’t just quitting—they are retiring at record rates, too</a> | Quartz</h4>



As this headline states clearly, there’s an increase in workplace exoduses nationwide—both for other jobs, and also for good. The percentage of retired Americans jumped a full percentage point during the pandemic, from 18.5% to 19.5%. In 2020, 5,857 PERA members retired, up about 10% from 2019, when there were 5,335 service retirements.



<h4 class="wp-block-heading"><a href="https://www.denverpost.com/2021/06/16/colorado-health-insurance-state-government-walmart/" target="_blank" rel="noreferrer noopener">Colorado state government, major employers like Walmart look to lower health insurance costs</a> | Denver Post (possible paywall)</h4>



The Colorado Purchasing Alliance is a group of organizations looking to address the rising cost of health care. Next year, some employers will be banding together to negotiate pricing directly with hospitals and other providers. Walmart, Comcast, and the State of Colorado are among the employers in this initiative. (Colorado PERA is member of the Colorado Purchasing Alliance but is not participating in the group purchasing initiative yet.)



<h4 class="wp-block-heading"><a href="https://www.futurity.org/aging-trends-2588122-2/" target="_blank" rel="noreferrer noopener">Report: Positive Trends in Aging, But Not For Everyone</a> | Futurity</h4>



Getting older is getting easier. In the past decade, older populations have seen improvements in physical functioning, vision, hearing, and even lower rates of dementia. Fewer live in nursing homes or assisted living settings. Those who do don’t need as much help. But those are just averages. On the whole, women are the driving force behind these statistical changes while men lag behind. Also, Black and Hispanic Americans haven’t experienced these improvements to the degree that other groups have.



<h4 class="wp-block-heading"><a href="https://www.nerdwallet.com/article/finance/how-to-harness-your-hsas-superpowers" target="_blank" rel="noreferrer noopener">How to Harness Your HSA’s Superpowers</a> | Nerdwallet</h4>



If you have a high deductible health plan (HDHP), you might know that you have access to a health savings account (HSA). At first glance this might seem indistinguishable from a flexible spending account (FSA). But there are some key differences, which might affect your retirement. For example, whereas FSAs require you to spend most of your account balance each year (use it or lose it), you can accumulate tax-free savings in your HSA over the course of many years.



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News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

News You Should Know: Americans retiring at record rates

<h4 class="wp-block-heading"><a href="https://www.napa-net.org/news-info/daily-news/what%E2%80%99s-new-secure-act-20" target="_blank" rel="noreferrer noopener">What’s in the New SECURE Act 2.0?</a> | The National Association of Plan Advisors</h4>



A bill known as the “SECURE Act 2.0” looks to build on last year’s SECURE Act, which altered a number of retirement-related laws. The bipartisan legislation passed the Ways and Means Committee of the U.S. House of Representatives unanimously, a big step in its final passage. Changes the bill would make if it becomes law include:



<ul><li>Making auto-enrollment in 401(k) and 403(b) the norm, with a minimum amount of at least 3%.</li><li>Automatically increasing contribution amounts by 1% every year until contributions reach 10%.</li><li>Individuals have the option to opt out. Current 401(k) and 403(b) plans are grandfathered in. And small businesses, new businesses, church plans, and governmental plans are exempt.</li><li>Allows an employer to help employees pay off student loans, treating this assistance as if it were matching contributions to a retirement plan.</li></ul>



<h4 class="wp-block-heading"><a href="https://www.aarp.org/retirement/planning-for-retirement/info-2021/5-mistakes-couples-make.html" target="_blank" rel="noreferrer noopener">5 Mistakes Couples Make When Planning for Retirement</a>&nbsp;| AARP</h4>



Money disagreements are common among partners. In fact, a 2018 study suggested that about four in ten divorced Gen Xers and three in ten divorced Baby Boomers cited money differences as a reason for their marriage ending. The most common problem areas have nothing to do with dollars and cents and everything to do with communication. When you think about your road to retirement, follow this advice to make sure that your road and your partner’s road are headed in the same direction.



<h4 class="wp-block-heading"><a href="https://content.copera.org/news-you-should-know-whats-in-the-secure-act-2-0/" target="_blank" rel="noreferrer noopener">What Motherhood Taught Me About Money: 8 Moms Weigh In</a>&nbsp;| Mooresville Tribune</h4>



In recognition of Mother’s Day, this article compiles advice from mothers around the country. Some common themes are found throughout, including a more focused approach to planning for the future and understanding the value of the present.



<h4 class="wp-block-heading"><a href="https://www.plansponsor.com/health-care-costs-retirement-remain-top-stressor/" target="_blank" rel="noreferrer noopener">Health Care Costs in Retirement Remain a Top Stressor</a>&nbsp;| Plan Sponsor</h4>



Health care costs are a top fear for soon-to-be retirees. However, most people haven’t spent time planning for this expense, according to a recent report from Fidelity. While rising prices do present a serious issued, there are steps people can take. Building up a health savings account during your working years can yield additional resources in your retirement years due to the tax savings. And retirees should spend time during open enrollment evaluating their options: The plan that worked for you one year might not be the best fit now.



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News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

News You Should Know: What’s in the SECURE Act 2.0?

Prescription drug manufacturers continue to raise prices. Meanwhile, Colorado recently announced updated plans for a program that aims to bring lower-cost options to consumers.



You might think these sound like old headlines. You wouldn’t be entirely wrong. PERA On The Issues covered <a href="https://peraontheissues.com/multiple-approaches-to-keeping-prescription-drug-prices-down/" target="_blank" rel="noreferrer noopener">the rise of drug prices</a> in January 2020 and last summer looked into executive actions that <a href="https://peraontheissues.com/can-an-executive-order-bring-down-drug-prices/" target="_blank" rel="noreferrer noopener">aimed to keep prices down</a>.



So when GoodRX, which compiles data on medication costs, <a href="https://www.goodrx.com/blog/january-drug-price-hikes-2021/" target="_blank" rel="noreferrer noopener" class="broken_link">reported</a> that companies raised the price on 822 brand-name drugs by an average of 4.6% in January, it was news. But it wasn’t necessarily new.



“The rise in prescription drug prices is a trend we have been monitoring for years,” said Jessica Linart, PERA’s Director of Insurance. “When drug manufacturers raise prices insurers must pay those higher costs, which unfortunately get passed on to consumers in the form of higher premiums.”



This is an issue that affects every type of insurance: employer-based and retiree plans alike.



PERACare uses multiple strategies to keep drug prices down to the extent possible. Some are administrative, such as using competitive bid processes to get the best pharmacy pricing from insurance carriers. PERACare staff works with consultants and other industry groups to monitor legislation that can impact drug costs.



Another strategy is to give retirees choices to keep costs down where possible. Incentivizing the use of generic equivalents instead of name-brand drugs and filling prescriptions through the mail, when possible, can save retirees money and help reduce overall plan costs.



<h4 class="wp-block-heading">Colorado’s Plans to Address Rising Prices</h4>



In January, The Colorado Department of Health Care Policy and Financing <a href="https://content.copera.org/drug-prices-continue-multi-year-climb/" target="_blank" rel="noreferrer noopener">released an update</a> on a number of plans underway that address rising costs. These updates include:



<h5 class="wp-block-heading">Import Drugs From Canada</h5>



Colorado has been developing a program to import some drugs from Canada, where prices are often lower than equivalent drugs in the U.S. This program originated in a bill signed into law in 2019. However, Colorado must coordinate and comply with federal regulations. The report states: “The Department estimates that Colorado will have an operational importation program by 2023.”



<h5 class="wp-block-heading">Give Prescribers Useful Information Sooner</h5>



The Department has created a tool for people who prescribe prescription medication in Colorado. The first phase of the project helps prescribers assess opioid risks. The second phase, which the Department expects to be operational this summer, provides information like co-pays and drug prices so that prescribers can make cost-effective decisions for patients.



<h5 class="wp-block-heading">Target the Highest-cost Drugs</h5>



Not all drugs are created equal. Some specialty drugs — drugs that are often complex or treat rare diseases — cost so much that they can affect the entire system. The report states: “an analysis of fiscal year (FY) 2019-20 claims data from Colorado Medicaid revealed that 1.42% of the prescriptions written to care for Medicaid recipients were so expensive, they represented 48% of total pharmacy expenditures.” Colorado is analyzing the impact these drugs have. “These numbers are similar to what we see with the PERACare plans,” Linart said. “Anything that can be done to moderate the pricing on specialty medications will be a benefit to retirees on those PERACare plans.”



<h5 class="wp-block-heading">See What Other States are Doing</h5>



Every state across the country faces similar challenges related to rising prices. And every state is coming up with ideas to address them. The Department surveyed more than 431 bills it found in state legislatures nationwide and shared its findings for others to consider.

Drug Prices Continue Multi-year Climb

<a href="https://squaredawayblog.bc.edu/squared-away/caring-for-a-parent-can-take-financial-toll/?ct=t(Y_COPY_01)" target="_blank" rel="noreferrer noopener">Caring for a Parent Can Take Financial Toll</a> | Squared Away Blog



Those who care for aging parents know that providing care isn’t cheap. There are direct costs like gas and picking up household goods like groceries, as well as indirect costs, which can include reducing hours at work or retiring sooner. Researchers looked into what caregiving means in dollar terms for women in their 50s and 60s.



<a href="https://www.forbes.com/advisor/banking/financial-rules-of-thumb-that-were-becoming-obsolete-before-covid-19/" target="_blank" rel="noreferrer noopener">Millennial Myth-Busting: 5 Financial Rules of Thumb That Were Becoming Obsolete Even Before Covid-19 Arrived</a> | Forbes



Which pieces of time-tested advice are younger adults following…and which are they casting aside? While you might be surprised at a few of these (“I thought owning was always better than renting!”), know that the wisdom of the ages is not being completely discarded. As the article states: “61% of adults still rely primarily on their parents for financial guidance.”



<a href="https://www.kiplinger.com/personal-finance/how-to-save-money/family-savings/601739/hope-for-the-best-plan-for-the-worst" target="_blank" rel="noreferrer noopener">Tune Up Your Finances for a Better 2021</a> | Kiplinger



Getting finances in order is a popular New Year’s resolution. Although we all know the success rate of most resolutions, a resolution that requires a bit of paperwork might be a great fit in early 2021 as people continue to self isolate in their homes. Use this checklist to get your papers in order so you can hit the ground running on January 1.



 <a href="https://www.benefitspro.com/2020/12/07/report-primary-care-spending-on-the-decline/" target="_blank" rel="noreferrer noopener">Report: Primary care spending on the decline</a> | Benefits Pro



At first glance, this might sound like good news—a rare story about health care costs that mention spending going down. But read on and you’ll learn why this is cause for concern. Primary care spending is a cost-effective way of delivering care. Meeting with your normal doctor on a regular basis can help catch issues early, before they become more worrisome and expensive to address.







News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

News You Should Know: The Cost of Caring for Parents

<a href="https://www.kff.org/health-costs/report/2020-employer-health-benefits-survey/" target="_blank" rel="noreferrer noopener">2020 Employer Health Benefits Survey</a> | Kaiser Family Foundation



This survey is geared toward employers who provide health insurance to employees. But the findings are eye-opening for individuals, too. They illustrate why the average American worker who retires before Medicare age faces sticker shock when shopping for health insurance. 



In 2019, employees paid an average of $5,588 annually ($465 monthly) in premiums for family coverage through their employers. Employers, meanwhile, chipped in a staggering $15,754 ($1,312 monthly). Combined, family coverage ended up costing $21,342 per year ($1,778 monthly). 



That employer contribution can obscure the overall cost of coverage. That, in turn, can explain why prices seem to jump so much when moving from employment to retirement. The overall price likely didn’t change too much. Instead, it&#8217;s losing the employer contribution that leads to the big jump in prices early retirees see.



<a href="https://www.forbes.com/sites/advisor/2020/10/06/studies-confirm-that-half-of-americans-struggle-with-retirement/#2559f98b6f9f" target="_blank" rel="noreferrer noopener">Studies Confirm That Half Of Americans Struggle With Retirement</a> | Forbes



Retirement experts have been warning about a retirement crisis for decades. That prediction is turning into an observation. For the next two decades, 10,000 people will blow out 65 candles on their birthday cakes—every single day. 



Despite the drumbeat of warnings, about half of employees “are concerned with their household’s financial wellbeing.” And half of households “are in danger of lacking sufficient funds to continue their standard of living once they stop working.” This article explores why. (Note: it focuses on those who rely on defined contribution accounts for retirement).



<a href="https://content.copera.org/news-you-should-know-the-total-cost-of-health-insurance/" target="_blank" rel="noreferrer noopener">The case for a retirement roommate</a> | NNY360



The cost of renting is going up. And more than 40 percent of people age 65 and above live alone. Why not address both issues at once? 



This author makes the case that more retirees should consider finding a roommate. Not only can it make financial sense, but having a roommate can also fend off one of the biggest risks retirees face: social isolation. It might not be for everyone, but it could be a great solution for many. In fact, one room-renting website reported that the number of users over 50 is growing twice as fast as other demographics.



<a href="https://www.kiplinger.com/retirement/medicare/601482/medicare-from-soup-to-nuts" target="_blank" rel="noreferrer noopener">How to Pick the Right Medicare Plans for You</a> | Kiplinger



October is open enrollment time. For those looking for Medicare plans, navigating the options can be tricky. There are many parts (A, B, D) to consider, doughnut holes to avoid, and more. This article is an overview of what you need to know when assessing your needs and the available options. 



(Note: PERA retirees have multiple Medicare insurance plans available through PERACare. During the month of October, you can attend a <a href="https://content.copera.org/news-you-should-know-the-total-cost-of-health-insurance/" target="_blank" rel="noreferrer noopener">virtual meeting</a> to learn more about how these plans work.)







News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

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