Initially, my FIRE projections did not include a line item for healthcare costs; I just assumed a 2.3% inflationary increase in spending across the board.
But after reading about healthcare premium increases running into the double digits for some years, and increases of up to 25% to 60% over some 5-year periods (not to mention skyrocketing prescription cost increases), I added a line item just for healthcare costs, because I'm not convinced the overall 2.3% accurately predicts the increasing costs of healthcare.
So -- when you're doing your projections -- what annual percent increase do you use for healthcare costs? Right now, I'm using 3% (to cover both premium and other healthcare cost increases), but that might be a bit low, even with the ACA not being struck down.
Also, do you think healthcare costs will continue to be a runaway freight train, or do you genuinely believe that public pressure will ultimately lead to healthcare policy that brings those cost increases down until they're in line with regular inflation?
(Moderators: If I've put this in the wrong place, feel free to move it to the right section.)