Many people assume that once they hit 65, Medicare will take care of most health-related expenses. The truth? It covers a lot, but not everything. And the out-of-pocket costs can surprise even the most prepared retirees. Whether you’re planning for your own retirement or helping a parent navigate theirs, it’s worth taking a closer look now. Here are a few key areas where extra planning can go a long way.
Real Talk: Medicare Doesn’t Cover Everything
Original Medicare (Parts A & B) helps cover hospital stays and doctor visits, but doesn’t include prescription drugs, dental, vision, or hearing. That’s where Medicare Advantage or Part D plans can help, but those come with different networks, rules, and costs.
Questions to Consider for YOUR Household Needs:
1) Will I need routine dental or vision care?
2) Do I have ongoing prescriptions that could be expensive out-of-pocket?
3) Should I consider Medigap or Medicare Advantage for broader coverage?
Real Talk: Health Care Will Likely Be One of Your Biggest Retirement Expenses
According to recent estimates, a healthy couple retiring at 65 could spend over $300,000 on health care throughout retirement, not including long-term care. That number doesn’t mean panic. But it does mean building health care costs into your retirement income strategy in the same way you would for travel or housing.
Opportunities to look out for:
1) Maximize Health Savings Accounts (HSAs) while still eligible
2) Estimate Medicare premiums and out-of-pocket costs for your retirement years
3) Budget for supplemental insurance coverage and co-pay
Real Talk: Long-Term Care is Separate.. & Often Overlooked
Medicare won’t cover most long-term care needs, like assisted living or extended in-home care. This often surprises families who first encounter it during a parent’s health crisis.
Plan ahead. Give yourself more choices later:
1) Consider long-term care insurance or hybrid policies
2) Discuss potential care preferences and costs with loved ones.
3) Understand how different states treat Medicaid eligibility and spend-downs
Real Talk: Your Health Care Strategy Should Evolve WITH You
Just like your investment mix or income needs, your healthcare plan should be reviewed periodically. As you age, premiums shift, benefits update, and your personal needs change
Things to keep in mind:
1) Review coverage during Medicare annual enrollment/open enrollment (October 15th-December 7th)
2) Confirm your chosen providers still accept your plan
3) Coordinate your income strategy to avoid unintended Medicare premium surcharges
Clarity Today Can Create Confidence Tomorrow.
At Centurion Wealth Management, we help clients prepare for the full financial picture of retirement, including what’s covered, what isn’t, and how to plan for both. Healthcare is personal. Your strategy should be too. Let’s talk.
Together, we can work to keep you on-track toward your financial goals.
Request a consultation to learn more.
Read more articles by Paul Bortnick Jr