Paying for healthcare was the primary topic of a recent issue of Financial Planning magazine. When it comes to retirements, we assume that each of us will qualify for Medicare. For those of us already qualified, Medicare is a lifesaver, no pun intended. But…

When we are young and feeling good, we take our health care for granted. And since most of us don’t die early (a good thing!), we are likely to suffer the effects of old age.

Unfortunately, few of us ever plan for those eventualities. And that failure can have catastrophic results. (and I’m mindful that once again, I’m on the “woe and gloom” trail). There is an article in the magazine by a Suzanne McGee, “The Big Question Mark”, where she tells us about one family paying $200 a day to cover the out-of-pocket healthcare expense of a 92-year-old man needing around the clock attention, an of another family whose patriarch is in a care center costing $400 a day. “He’s been there for years,” says a relative, “and won’t be coming out.”

Healthcare isn’t cheap. And costs are increasing rapidly. Annual healthcare spending in this country, which was $2.5 trillion in 2009, is projected to surpass the $4.2 trillion mark in 2018, according to a 2010 report by Aetna, which based its numbers on statistics from Centers for Medicare and Medicaid Services.

And older Americans will be consuming more healthcare products and services as the organizations that have funded or offset those expenses are looking to shift much of the burden back to the individual.

However, an estimated two-thirds of people 50 – 64 years old lack confidence they are saving enough to handle their healthcare costs in retirement. This according to a survey by the Society of Actuaries (SOA). Only 7% of respondents felt sure they’d have enough money after they stopped working to cover their substantial healthcare needs. The SOA noted that a couple in their mid-sixties could incur some $250,000 in healthcare costs after leaving the workforce.

How are people going to deal with this? According to the SOA, one of the most common answers was to “try and stay healthy to minimize expenses.” Not exactly the best plan.

You need to ask your financial advisor and have a conversation about this. Unfortunately, this takes many of us out of our comfort zone. The issue is complex, and most advisors would rather focus on financial plans, portfolio management or some other area where they profess expertise.

It is almost impossible to devise a perfect solution to healthcare planning, given there are so many unknowns, including healthcare reform. So you do the best you can with what you have. But ignoring the problem is not going to make it go away. And taking old folks out to the prairie and leaving them there for the alligators is not an option either.