Personal finance author and radio host Dave Ramsey has a lot to say about the financial costs of Medicare and retirement.
As he communicates with people, Ramsey encounters situations that often transform from a discussion about money and finances to a more important topic that involves human lives.
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First, Ramsey tackles the Medicare deduction that Americans always see on their paystubs. People tend to pay close attention to these details as they near retirement age and imagine that they will pan out to reach a goal of being covered for health care during their retirement years.
Ramsey suggests that Americans ought to try to make the most of which they are entitled.
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While a person is working for a company, they generally have a health care plan that is relatively affordable. In retirement, there are Medicare costs that can be expensive.
Ramsey explains that choices one is offered often boil down to being smart — and that means proactively figuring out the best decisions to make.
A retired couple is seen discussing finances in their kitchen. Personal finance radio host Dave Ramsey explains important facts about Medicare.
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Dave Ramsey suggests a close look at Medicare options
Ramsey advises his readers to think about the parts of Medicare.
Medicare Part A involves costs for hospitalization. Medicare Part B covers preventive measures such as regular doctor visits and blood screenings.
Medicare Part C (also known as Medicare Advantage), is provided by private insurance companies and often takes care of dental, vision and hearing coverage.
Prescription drug costs are covered under Medicare Part D. Those costs vary depending on a person’s individual health circumstance.
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Options are available from which to choose. An important note here is that there is also a Medicare Supplement Plan that helps people pay costs that aren’t covered, known as Medigap.
Recently, Ramsey fielded a note from a reader that elicited an emotional response. And the financial implications are important because many people encounter these realities and can be helped by understanding others’ experiences as they relate to their own.
Related: Dave Ramsey warns Americans about a major Medicare problem
Dave Ramsey answers an emotional question about healthcare finances
A written question for Ramsey was asked about a tough health and financial situation a family encountered.
“I received some news from a family member recently, and I’m not sure what to tell them,” the advice-seeker wrote, identifying herself as Jacki. “One of my cousins just discovered she has cancer. She’s a single mom with two young kids, and it doesn’t sound like she has thought much about the future. What are the best steps she can take financially at this point to make sure her family is protected?”
Ramsey replied with a word of empathy.
“Dear Jacki,
I’m truly sorry to hear about this,” he wrote. “A cancer diagnosis is a scary thing, so please remember to pray for her and be there for her all you can.”
“Most of the time when folks ask if a person has their affairs in order, they’re usually referring to a few different questions,” Ramsey continued. “First, are you right with God? Then, do you have life insurance and a will? Another important thing is having all the paperwork of your life organized and in a safe location, so someone you trust can handle the details in a worst case scenario.”
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Ramsey got down to business and explained his advice on life insurance.
“Everyone should have good term life insurance in place,” Ramsey wrote. “My advice is to have a policy worth 10 to 12 times your annual income. When it comes to a will, make sure it’s state-specific. Probate and estate regulations aren’t federal laws, they’re state laws. So, any will should be drawn up according to guidelines for the state in which you live.”
Then Ramsey talked about another financial reality.
“It’s probably the hardest thing to think about, I know, but arrangements should be made for any minor children,” he wrote. “Sitting down to talk with two or three trusted family members, or close friends, to decide who will take them if the worst should happen is a good idea, too. Whoever is chosen for this responsibility should be a person who’s incredibly mature, caring and willing to love and raise these kids as if they were their very own.”
“Good luck, Jacki,” Ramsey added. “I know this is a difficult time for your whole family. Be there for each other, pray a lot and hug on one another all you can. God bless you all.”
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