IRI to provide health care cost tool to members

Tool will enable IRI member firms to project how much retirees will spend on health care

May 21, 2014 @ 12:19 pm

By Darla Mercado

Some 150,000 financial advisers will have access to estimates for retirees' health care costs thanks to a new partnership between the Insured Retirement Institute and HealthView Services Inc.

The IRI announced Tuesday that it would give its member firms – comprised of broker-dealers and insurers – access to HealthView Prime, a tool that helps advisers plan for clients' health care expenses in retirement.

HealthView Services recently launched its Retirement Health Care Cost Index and concluded that an average healthy couple that's retiring in 2015 will spend nearly 70% of their total life time Social Security benefits — $366,599 in today's dollars — on health care in retirement. The company predicts that costs will rise to 98% of total lifetime Social Security benefits or $421,083 in 10 more years.

There's also the matter of Medicare expenses and managing the cost of those premiums in retirement. Overall, HealthView Services concludes that healthy, affluent couples who retire next year in the top Medicare surcharge bracket can expect to pay $621,867 in lifetime health care costs.

The growing cost of health care services, plus the income and bracket management tied to Medicare expenses, have intrinsically tied health care with retirement planning.

“Medicare [parts B and D] includes surcharges based on income; you're looking at a significant number,” said HealthView Services chief executive Ron Mastrogiovanni. “You can use products on the shelf to manage income brackets, which can save your clients well over $100,000 in health care costs.”

In order to obtain its estimates, HealthView Prime uses data from 50 million health care cases to create projections of what costs will be for retirees. It also takes into account average longevity and expected health care costs in retirement based on age, gender and health.

As part of the agreement with IRI, HealthView Services will make its program available to IRI member firms and charge the firms based on adviser usage.

HealthView Services is well-known for the deal it has with Nationwide Life Insurance Co., under which it provides advisers with access to a health care cost planning tool.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Regulators' gloves are coming off with cybersecurity. Put up your dukes with these tips

Updated guidelines and some of the first-ever rule enforcements signal that regulators are getting serious about holding firms accountable for data breaches, according to special projects editor Liz Skinner and technology reporter Ryan Neal.

Recommended Video

Keys to a successful deal

Latest news & opinion

Blackrock exposed data on 12,000 financial advisers

The data appeared in three spreadsheets, linked on one of the New York-based company's web pages dedicated to its iShares exchange-traded funds

Advisers throw cold water on FIRE movement

Millennials love it, advisers don't: Turns out, extreme early retirement is a suitable goal for almost nobody.

10 universities with the most billionaire alumni

These 10 American schools have the greatest number of alumni who are billionaires.

Top-performing ETFs of 2018

The markets took a beating last year, but these exchange-traded funds bucked the trend

Morningstar says investors rushed the exits in 2018

Net flows into mutual funds and ETFs were the lowest since the 2008 financial crisis, while money-market funds captured inflows.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print