Take steps to save on healthcare costs in retirement.
You are entering retirement soon.
Perhaps you have already retired.
Either way, you know aging brings with it additional healthcare costs.
According to a recent Motley Fool article titled “How to Save Money on Healthcare in Retirement,” these medical costs will likely be your largest expense in retirement.
If you are a 65-year-old man, you are projected to spend $189,687 on medical costs in retirement.
For women, the number is greater at $214,565.
And these figures exclude long-term care expenses.
What can you do to save on healthcare expenses in retirement?
Take advantage of preventive services.
Medicare provides access to many free services designed to help you stay healthy.
With Medicare, you can have a free wellness visit with your doctor each year.
Other screenings are also free under Medicare.
These include depression screenings, diabetes testing, mammograms, and other specific cancer screenings.
This allows you to be proactive about your health and can help you lower your healthcare expenses.
You are eligible to enroll for Medicare starting at age 65.
Combat health issues when they start.
Many medical issues start small.
Without addressing them, they can grow in severity.
Treating small health issues is often simpler and less expensive and can prevent them from developing in severity.
Consider a Medicare Advantage Plan.
Traditional Medicare does not cover many essential medical services.
For example, vision care, dental care, and hearing aids are not included in traditional Medicare coverage.
To insure these services, you will need to look at a Medicare Advantage plan.
These provide a wider range of benefits and can save on healthcare costs in the future by decreasing your out-of-pocket medical expenses through capping the cost for such services.
Find the best prescription drug plan.
Do you take prescription drugs?
If yes, you should prioritize finding a cost-effective plan.
With a traditional Medicare plan, you will need to enroll in a separate Part D plan to have drug coverage.
Compare these plans before committing because they are not all the same.
Purchase Long-Term Care Insurance.
About 70 percent of individuals age 65 or older will require some form of long-term care before they die.
These costs are not covered by Medicare.
For this reason, long-term care insurance is vital to managing your risk of impoverishment and lowering your overall health care expenses.
The best time to apply for this important insurance protection is when you are healthy and in your 50s.
In fact, Gretchen and I purchased our long-term care policies when we were both age 49.
We do “eat our own cooking” around here, so to speak.
Taking these steps can help you to save on healthcare costs in retirement, especially that last one that can be catastrophic.
Reference: Motley Fool (May 19, 2020) “How to Save Money on Healthcare in Retirement”