Advisors can help retirees and near retirees determine some of their medical insurance costs in retirement using a new app developed by HealthView Services, a provider of retirement health care cost planning applications based in Danvers, Mass.
The new app, HealthView Explorer, was developed for financial advisors and calculates the cost of Medicare Parts B and D and supplemental insurance for a person retiring in each state.
Costs can vary as much as 30 percent, depending on the state of residence, because Medicare Part D, which provides prescription coverage, and supplemental insurance, which covers some costs not covered by Medicare, vary by state. Michigan, Florida, Nevada and Maryland are the most expensive states, while Hawaii, Vermont and Maine are the least expensive, HealthView Services says.
The app calculates costs during the first year of retirement and over a 20-year retirement. A retiree in Michigan will spend $3,707 in the first year of retirement and will have a lifetime projected cost of $152,175. This is nearly $40,000 more than a retiree in Hawaii, who will pay lifetime projected costs of $112,528 and a first-year cost of $2,818.
“Many retirees face important decisions about where they want to enjoy their retirement years,” says HealthView Services founder and CEO Ron Mastrogiovanni. “This tool helps individuals measure the potential impact on health care costs of relocating in retirement.”