2019 Retiree Healthcare Costs

  • 2019 Retiree Healthcare Costs

    Though premiums within Medicare have stabilized over the last 2 years the overall projected healthcare costs for a couple, both 65 years old today, projecting to live until age 87 for the female and 85 for the male is expected to rise yet again in 2019.

    This couple should expect to incur just over $360,000.00 in out of pocket costs for their Medicare premiums, which is, roughly, a 4.5 percent increase from 2018.

    This projection is based on a couple being considered fully insured through Original Medicare. This consists of coverage from Medicare Parts A and B, as well a Medicare Part D prescription drug plan and a Plan F Medigap Plan (Supplemental Plan).

    Both Part D and Supplemental Plan are based on the national average premium for coverage.

    Why the increase:

    Even with the Medicare Part B premium only increasing by just 1.1% from 2018 to 2018, Medicare Part D premiums, on a national average decreasing by as much as 10% in the same time period and the premium for Supplemental coverage (Medigap Plan F) remaining flat the issue is the projected future rate of premiums according to the Medicare Board of Trustees.

    From 2019 to 2027 Medicare premiums, on average, are expected to increase by over 5.5 percent and with the Baby Boomer generation advancing faster towards retirement and age 65, costs are expected to continue at least at this rate for the near future.

    Planning for healthcare has become a major concern for many people nearing or in retirement and rightly so with costs being projected to be one of the largest expenses they will face for the rest of the lives.

    The issue: which financial firm will help them plan for this according to federal law?

    Dan McGrath

    Dan McGrath is considered to be a leading authority on the subject of how health related costs in retirement will affect both retirement as well as the overall the financial planning process. Mr. McGrath has also authored the bestselling retirement planning book “What you don’t know about retirement will hurt you” as well as “Medicare: A Practical Guide to Understanding Your Health Coverage in Retirement”. http://www.jesterfinancial.com

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