Paying for Your Health Care in Retirement

Paying for Your Health Care in Retirement

One of the top concerns for people approaching their retirement years is how they will pay for their health care.

Most Americans have received their health care coverage through their work, or for a smaller number, through an individual health care insurance plan.

While people who continue to work past age 65, and still have access to employer sponsored health insurance, most people will look to Medicare to cover their health care in their older years.

Medicare is available to eligible people turning 65, and for people with certain disabilities. Medicare is medical insurance furnished by the federal government.

Original Medicare consists of Part A to cover hospital or inpatient costs, and Part B to provide for medical or outpatient coverage.

Part A does not have a premium for eligible individuals, but does have cost sharing amounts (deductibles, coinsurances) that are paid by the beneficiary when services are received. Part B (outpatient) of Medicare is optional coverage and charges a premium, which is adjusted each year by the federal government to cover costs. Premiums for Part B are means tested—higher incomes pay a higher premium based on an established table of values. Part B also uses cost sharing in the form of deductibles, coinsurance, and excess charges.

Medicare pays for medical care based on reimbursement schedules determined by the government for all approved medical care. As Medicare does not pay full compensation for care, the beneficiary is responsible for cost sharing out of their own pocket. To address this, Medicare beneficiaries can seek to improve their benefits using either Medicare Supplement (Medigap) plans or Medicare Advantage plans.

Part D of Medicare pays for outpatient prescription drugs, a benefit not included with Original Medicare. Multiple plans are available, with varying benefits and premiums. Part D is also means tested. is rigorously certified in all areas of Medicare, and can advise you as your needs pertains to Medicare Supplements and Medicare Advantage plans. We ensure that the costs for health care have been anticipated and can be paid for with the proper Medicare coverage. Moreover, we can also aid you if you will receive your health care coverage from both Medicare and Medicaid.

The costs of non-Medicare covered health care costs (ie. dental, vision, hearing etc) must also be considered, and we will examine and can suggest coverages in these areas as well.