The rising cost of health care is making it tougher on seniors to afford the proper care they need. According to a recent Reverse Mortgage Daily report, planning costs have risen by more than 4 percent. However, home equity may be a viable option for folks who are struggling.
"HealthView recently released its 2018 Retirement Health Care Costs Data Report, which showed that retirees can expect their health care costs to rise annually by about 4.22% for the foreseeable future," according to RMD.
"The inflation slowed from last year, when HealthView projected inflation at 5.47%."
So how can health care costs become more bearable for seniors thought home equity?
“The fact that much of one’s wealth may be tied into their home leads directly to two solutions often implemented to cover health costs: equity loans and reverse mortgages,” Daley told RMD in an e-mail, according to the report.
“In each case, money can be taken out to fund health care expenses, and most notably, those additional funds do not count as Modified Adjusted Gross Income (MAGI).”
The report revealed that for seniors with an income of $85,000 and less, surcharge fees associated with Medicare benefits are waived, however, those with an income of more than $85,000 are hit with fees ranging from36% to 220%.
To learn more about home equity and its affect on offsetting the rising cost of health care, click on the image above.