How Can I Plan for Rising Health Care Costs?

What are your retirement dreams? Maybe you plan to travel the world, learn a new sport, or hike through Yosemite. It goes without saying that you'll want to stay healthy to make those dreams a reality.

So naturally, you'll want the best health care available. Here are a few things you might consider as you plan for your future health care needs.

Health care insurance in retirement is available from many sources. Government programs like Medicaid or Medicare offer numerous benefits. And some employers offer extensive health insurance coverage to their retirees. But you still might need to buy supplemental private insurance, extend your employer-sponsored coverage through COBRA, or purchase Medigap to ensure complete coverage.

Whatever coverage you opt for, it's smart to know in detail what your insurance covers and exactly what benefits you're eligible for — now and down the road.

Consider how you'll afford health care costs if you become ill or are unable to care for yourself. Would you want to move to an assisted living facility? Or hire a private nurse to look after you at home? What if you needed to be in a nursing home? These options can be expensive.

Many people in their 50s and 60s purchase long-term care insurance so that they don't worry abut becoming a burden on their family. A good policy can cover the cost of care in a nursing home, an assisted living facility, or even your own home.

To stay healthy, you should plan for more visits to the doctor for preventive tests and routine check-ups. But even if you're in great shape, you'll want to be ready for emergencies with appropriate medical care to get you on the road to recovery.