Healthcare can get very expensive, very quickly—especially if you haven't planned ahead. When a medical crisis threatens your health, it can also jeopardize your financial security.

The Covid-19 pandemic has been a powerful reminder of how important it is to prepare for the unexpected when it comes to healthcare. For example, a patient who experienced a severe case of Covid-19 spent several months in rehab. When the patient's insurance stopped covering treatment, their out-of-pocket cost was more than $60,000 a month.

Health advisors and wealth advisors often work together to keep their clients in good shape both physically and financially.

Doing the Math on Healthcare Costs

Having a plan in place can help prevent unanticipated healthcare costs from draining away your savings. How fast can the costs of care add up? Here a few more examples:

  • A rare illness. When someone is diagnosed with a rare illness, their health insurance plan may not cover cutting-edge experimental treatments or extremely high-priced medications, and depending on their financial situation, they may be ineligible for medication discount programs.
  • Inpatient treatment for substance abuse or mental health services. Most of these programs are not covered by insurance, and treatment can cost $50,000-$75,000 a month. Treatment typically starts with a 5-10 day detox, which can cost $1,000 a day.
  • Long-term care. The costs of nursing homes and other long-term care programs are higher than many people realize. If a 65-year-old patient with Alzheimer’s moves to an assisted-living facility and lives there for 20 years at a price of $20,000 a month, that stay will cost nearly five million. Private duty nursing at home at a price of $125 an hour will cost $3,000 a day, or one million a year.

What a Health Advisor Can Do

  1. Collaborate with your financial advisor to create a health and wealth plan for your family
  2. Ensure that family members have appropriate health insurance based on their individual needs
  3. Negotiate the cost of treatments that are not covered by insurance
  4. Manage insurance appeals and denials
  5. Create alternative treatment plans that are more cost-effective while still providing great quality care

If you and your family are currently in good health, it may be tempting to put off preparing for a health crisis. But it’s worth taking the time to consider how your family’s healthcare needs will change over time. Putting a plan in place now will help you maintain your health and your wealth in the future.

To learn more about how Better Health Advisors can help you with your healthcare planning, please visit our website or contact John at john@betterhealthadvisors.com.