5 Ways to Save on Healthcare Costs in Retirement

Determining how much money to set aside for health care costs in retirement is complicated and will differ from one person to the next. Variables like your personal and family medical history should be considered, as well as the impact of an unforeseen illness or injury, and the likelihood that your health will decline as you age. However, what you can rely on with some certainty is that the decades-long trend in rising medical costs will continue well into the future.¹

Let’s talk numbers. A recent study reports that a 65-year-old couple retiring in 2019 can expect to spend $285,000 in healthcare and medical expenses throughout retirement. For single retirees, the estimate is $150,000 for women and $135,000 for men.²

While there’s little you can do to stem the rise in medical costs, there are ways to help curb the amount you pay out of pocket. Below are five ways to help save money on medical expenses in retirement.

1. Do your homework before selecting the Medicare options that are right for you. For example, Medicare Advantage Plans can charge different out-of-pocket costs. They can also have different rules for how you get services, including whether you need a referral to see a specialist or if you must go to doctors, facilities, or suppliers that belong to the plan for non-emergency or non-urgent care services.
2. If you have Medicare Supplement Insurance (Medigap) or a Medicare Advantage Plan, use your insurance company’s online tools to find in-network providers.
3. Compare prices. Some medical facilities charge hundreds more than others for tests and procedures, including X-rays, MRIs, and lab work. Healthcare Bluebook® shows the price range by zip code for thousands of procedures and the "fair price," which is a reasonable amount you can expect to pay for the procedure in your area.
4. Ask your pharmacist about the lowest price available for each prescription. Many people are surprised to find that their “cash” out-of-pocket cost is the least expensive option for certain drugs.
5. Consider joining GoodRx or a similar program offering free drug cost-comparison tools and cost-saving coupons for certain medications.

If you have concerns about how you’ll pay for healthcare costs in retirement, including long-term care expenses, call the office today to schedule a time to talk about your retirement income needs.

^{These are the views of Katie Williams, a freelance financial writer and news commentator, not the named Representative or the Broker-Dealer, and should not be construed as investment advice or a recommendation. Neither the named Representative nor Broker-Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If expert assistance is needed in these areas, the reader is advised to engage the services of a competent professional. Please consult your financial professional prior to making any investment decisions.}

^{1 https://www.aarp.org/health/health-insurance/info-2017/retiree-health-care-costs-rise-fd.html
2 Fidelity Retiree Health Care Cost Estimate (https://www.plansponsor.com/estimates-health-care-costs-retirement-continue-rise/)}