Healthcare is potentially one of the larger expenses in retirement and having an accurate understanding of your expenses requires one to understand how to forecast for rising healthcare costs as part of your retirement planning.
In this blog post, we will review what you can expect to pay, on average, for Medicare or healthcare costs in retirement. The type of plan you select, if any, and your resident state and county will have a significant influence on your specific costs.
The national average Medicare Plan premium cost in 2021 for most people is approximately $250 per month, not including any co-pays or other out-of-pocket costs affiliated with each specific plan.
Range of Monthly Premium Costs for 2024
- Medicare Part A: Generally, without cost, if you or your spouse have accumulated 40 quarters for Medicare. Generally, this is accumulated in 10 years working and paying Medicare taxes.
- Medicare Part B: $174.70 a month. This can be higher, depending on your income. See IRMAA.
- Medigap Plans: $35 – $350 a month. See Medigap or Medicare Supplement Plans.
- Part D Drug Plans: $0 – $200 a month See Part D
- Medicare Advantage: $0 – $200 a month. See Medicare Advantage Plans.
Remember, Part C Medicare Advantage plans and Medigap plans still require that you maintain both Part A & B and continue to pay the Part B monthly premium to maintain eligibility.
To accurately calculate and forecast your costs, always include the following:
Plan Premiums
Plan Co-Pays
Plan Deductibles
Any out-of-pocket costs
Prescription drug costs
Annual maximum out of pocket limitations, if any
Important Note: Whenever possible, pay for your Part B coverage from your Social Security. This restricts potential premium increases, as determined by Congress, to the percentage increase in your Social Security Cost of Living Adjustment (COLA).
MediSmart Advisors can help you understand your Medicare coverage options and our service is always free to you. Call us at 1 (833) 79-SMART.