Healthcare costs can be a big “question mark” for those looking to retire. So, here’s some rough anecdotal amounts that a “typical” retiree might expect to pay. Let’s define “typical”: a couple, age 65 or older, in generally good health, but perhaps on a few regular medications. I will assume that they do not have retiree health insurance available through their previous employers.
So what would they need? Here’s a quick peek:
- Medicare A — hospital coverage
- Medicare B — doctor’s coverage
- Medicare supplement* — for “gaps” in Parts A & B
- Medicare D — for prescriptions
So what will all that cost? Again, this is just based on general searches on Medicare.com and anecdotal evidence from what I’ve seen from our clients who have retired here in the Atlanta area:
- Medicare A: $0 (assuming you’re fully covered by SS)
- Medicare B: $105-336/mo/person (depends on income)
- Medicare supplement: $150-300/mo/person (depends on plan type, area, etc.)
- Medicare D: $25-150/mo/person (depends on plan, area, drug formulary, etc)
So, that mean’s your total monthly costs are somewhere around $275-800/mo/person.
How does that compare with what you are paying now? By comparing the two, you can tell whether your healthcare costs will increase or decrease in retirement.
One more note… Medicare generally does not cover the cost of nursing home or other “long-term care.” So that is not included in this…food for thought.
*for simplicity, I’m not including Medicare part C plans, because they are less popular than the Medigap + D combination