Medicare Healthcare Costs in Retirement

Discuss your Retirement Healthcare

Have you taken the time to plan for unforeseen Medicare healthcare costs in retirement that could threaten to derail your whole budget?

If not, you should.

Studies have shown that of the 10,000 Baby Boomers that enter retirement daily and will continue to do so for the next 19 years, only 8 percent of them have prudently factored in the costs associated to Medicare into their retirement plan. When you consider that costs of Medicare, on average, will equate to over $405,000 for a couple throughout retirement, this can be a bit frightening.

Medicare Costs In Retirement Could Threaten Your Retirement Peace

When it comes to covering the costs of Medicare in retirement, particularly, there really is no way to sugar coat it – such expenses can be disastrous if not addressed correctly.  According to studies a mere 8 percent of retirees have even considered health care costs at all. AARP is going as far as to report that a large majority of the small number of retirees that actually factored in health care costs into their retirement plan, underestimated the costs – by a long shot.

What Are Healthcare Costs In Retirement

In terms of the costs associated to Medicare it all boils down to what you the retiree is responsible for.

Original Medicare is broken into 4 parts:

  1. Medicare Part A: covers costs associated with being admitted as an inpatient into a Medicare recognized facility. This is premium free for those who qualify.
  2. Medicare Part B: covers the costs of physicians and healthcare providers. $144.60 a month in 2020.
  3. Medicare Part D: prescription drug coverage. $40.81 a month for premiums as well as a deductible of roughly $400.00 on a national average
  4. Supplemental Coverage of Medigap Coverage: fills in the “gaps” of Original Medicare (Part A and Part B). $178.05 a month for a Plan G Medigap Policy, which happens to be the most robust Medigap plan a retiree can have. Please note that no Medigap Plan will cover the Part B Deductible which in 2020 is $198.00 for the year.

Why Original Medicare:

If you are admitted as an inpatient into a Medicare recognized facility for a medically necessary need there are no out-of-pocket costs at all. Everything is covered by the types of coverage within Original Medicare.

The other reason why Original Medicare works well for many retirees: there are no networks. As long as the healthcare facility accepts Medicare you can use it and your coverage will take care of all the costs. Just remember that you must admitted as an inpatient for a medically necessary need.

What Are Your Health Costs in Retirement:

Again, by structuring your health coverage through Original Medicare your only costs to be fully insured and be free of all networks are those premiums within this coverage.

On a national average the cost of your health coverage in retirement is:

  • $4,361.52 in premiums
  • $598.00 for out-of-pocket deductibles for Part B and Part D
  • Total $4,959.52

Please note that these are national averages. It is highly recommended that you meet with an experienced financial representatives that fully understand the Medicare program as costs can be exponentially cheaper for those in good health.

Contact Jester Financial for More Information on Medicare Health Care Costs in Retirement

Contact us today for more information on how we can help you make the most out of your retirement. We are experts in unlocking where health care costs in retirement are headed.

What is HealthcareRetirementPlanner.com

Healthcare Retirement Planner (HRP) is a comprehensive solution that helps identify potential problem areas in a retirement plan and design options to minimize the problem.

On an ongoing basis, HRP conducts research and aggregates all data to be used in its analysis algorithm. Pulling from areas such as The Congressional Budget Office, Centers for Medicare and Medicaid, polling individual insurance carriers across the United States along with private research firms, and positions HRP as having the most accurate information and calculations available.

Within the calculation process there are many variables that need to be considered, as the solutions are customized to each individual’s retirement plan. Variables that are required to analyze financial situations include, but are not limited to: age, gender, location, overall retirement income, types of retirement income, inflation and COLA. HRP has simplified this process.

The process of using HRP is straight forward. Simply by answering a few simple demographic questions, entering retirement asset information and income, along with assorted growth rates, you are supplied with a detailed year by year analysis that projects out 20+ years as to how the investors’ current financial plan will be impacted by their Medicare costs and the impact on their Social Security benefit.

Who is Jester Financial?

We are comprised of Financial Professionals, Medicare Specialists, Technology Experts and the foremost authorities on how this one cost will affect your bottom line especially when your health is on the line.

There are many financial institutions that do tremendous work when it comes to asset building, planning for college or creating stock/bond/mutual fund portfolios, but addressing concerns of affording health care costs…well for that, there is us.

Healthcare Retirement Planner was created with one purpose in mind: to provide data, education and tools necessary to help the financial industry create better financial futures and to plan for one of the biggest expenses in not only retirement, but life – their health.

In a time where health costs dominate the media, the political landscape and your bottom line, retirement planning with all of the facts have never been more important.

Origin of Our Data for Healthcare Cost in Retirement

On an ongoing basis, HRP conducts research and aggregates all Healthcare data to be used in its analysis algorithm. Pulling from areas such as The Congressional Budget Office, Centers for Medicare and Medicaid, polling individual insurance carriers across the United States along with private research firms, and positions HRP as having the most accurate Retirement information and calculations available.

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