This month’s employee memo encourages employees to make small lifestyle changes to reduce their out-of-pocket health costs. The memo shows the difference in savings between an average-managed patient and a well-managed patient. Please see an excerpt below.

Believe it or not, staying healthy just might make you wealthy. With small lifestyle changes and healthy choices, you may reduce your annual healthcare costs and increase your income. These lifestyle changes can be as simple as limiting your salt intake or taking your prescribed medication regularly.

For example:

Alisha: The average managed patient

    • Blood pressure of 150/95
    • Sometimes forgets medications
    • Sometimes doesn’t follow her suggested diet
    • Occasional smoker and drinker
Jasmine: The well managed patient
    • Takes prescribed medication
    • Exercises 30 minutes/day, 5 days/week
    • Moderate alcohol intake
    • Chooses healthy fats
    • Limits dietary salt
    • Quit smoking

 

For purpose of the case study, Alisha and Jasmine are compared in two levels of care: average managed (loosely follows physician recommendations) and well managed (fully complies with physician recommendations).

Alisha and Jasmine are both 45 years old and both sought medical treatment for high blood pressure. Alisha doesn’t follow the lifestyle changes her doctor suggested, whereas Jasmine diligently follows her doctor’s recommendations. With Jasmine’s small changes she saves more than $1,000 in out-of-pocket healthcare costs. Additionally, Jasmine’s combined pre-retirement and in-retirement savings will be $89,456 more than Alisha, as shown in the table below.

Annual Out-of-Pocket Healthcare Costs:

 

  Alisha Jasmine Jasmine’s Savings in Health Expenditures
Age 45 $2,477 $1,286 $1,192
Age 64 $13,936 $7,343 $6,592
Total Pre-Retirement $138,288 $72,591 $65,697
Total In Retirement $51,790 $28,031 $23,759
Grand Total $190,078 $100,622 $89,456
For illustrative purposes only.

The hypothetical case study results are for illustrative purposes only and should not be deemed a representation of past or future results. This example does not represent any specific product, nor does it reflect sales charges or other expenses that may be required for some investments. No representation is made as to the accurateness of the analysis.

For more tips on preparing for healthcare costs, contact your Advizrs Retirement Plan Consultant at PlanInsight@advizrs.com.