Estimating future medical costs after 65

[DawgMan]

Somewhat of a 2 part question...

1) Medicare: I know the real answer is "it depends", but for those of you who are now over 65 and in reasonable health, what type of medicare plans (Parts and Supplement plans) did you sign up for, what are your premium costs, and what are you finding your annual out of pocket costs are running? It would also be helpful to understand your max out of pocket?

2) Long Term Care: Anyone have experience, perhaps with a parent who needed long term health, as to what those expenses entailed/cost? How does Medicare play into covering any of those costs? On average, what does "quality" long term care really look like (i.e. 3rd party help, assisted living/nursing home)? My general thoughts have always been to self-insure this risk with the mindset that if I (or DW) is really that laid up in the future, than we just funnel the resources we had earmarked for all the fun stuff into addressing the care needs.

DW and I are 56 so we have our band-aid strategy until we get to 65, but I am trying to tighten up some rough estimates for future health care cost budgeting.

 

[ShokWaveRider]

Basically it is:

Medicare Part B & Deductible (Government controlled goes up every year by a buck or so)

Medicare Advantage Deductibles, Copays, Co-Insurance, and other shafting charges that they throw in (IMHO not good when budgeting as it is variable)

OR

Medicare supplement & Medicare Part D Drug Plans. While initially these appear more expensive initially, there are no deductibles or copays as long as everything is Medicare approved. They are great for budgeting as they are petty much predictable with the exception of Drug Bo-Pays. YMMV

We do not have LTC as we are self insured there.

 

[aja8888]

Somewhat of a 2 part question...

1) Medicare: I know the real answer is "it depends", but for those of you who are now over 65 and in reasonable health, what type of medicare plans (Parts and Supplement plans) did you sign up for, what are your premium costs, and what are you finding your annual out of pocket costs are running? It would also be helpful to understand your max out of pocket?

2) Long Term Care: Anyone have experience, perhaps with a parent who needed long term health, as to what those expenses entailed/cost? How does Medicare play into covering any of those costs? On average, what does "quality" long term care really look like (i.e. 3rd party help, assisted living/nursing home)? My general thoughts have always been to self-insure this risk with the mindset that if I (or DW) is really that laid up in the future, than we just funnel the resources we had earmarked for all the fun stuff into addressing the care needs.

DW and I are 56 so we have our band-aid strategy until we get to 65, but I am trying to tighten up some rough estimates for future health care cost budgeting.

We are in our 70's:

Me: Medicare premium - $135/month - $1620/year
Plan G supplement - $195/ month - $2340/year
Part D (drug plan) - $20/month - $240/year
OOP Drugs (I take one) - $48/year
Plan G deductible - $195/year

DW: Medicare premium - $135/month - $1620/year
Plan F supplement - $333/ month - $3396/year
Part D (drug plan) - $20/month - $240/year
OOP Drugs (she takes 11) - $4000/year
Plan F deductible - $0/year

Total OOP= $13,699

This does not include DW's oxygen concentrator that I had to buy (Medicare does not cover portable units) - Repairs this year on the unit totaled $950.

So we figure about $15K per year and rising each year.

We have no LTC insurance.

 

[Teacher Terry]

It depends where you live. My sister lives in Chicago and pays 600 month for herself. She has traditional Medicare. We have to carry my retiree health insurance until my husband is 65. It’s my supplement now that I am on Medicare. We will have to get off it in 4 years.

 

[Independent]

We are a couple living in Iowa. Our 2019 expenses were ...

3,252 ----- Medicare for both
1,135 ----- High deductible med supp for 71 year old
1,753 ----- No deductible med supp for 70 year old
.. 926 ----- Prescription drug coverage for both
.. 820 ----- Prescription drugs for both
.. 845 ----- Deductibles and coinsurance
.. 506 ----- Chiropractor not covered by Medicare
5,843 ----- Dental, eye exams/glasses, and hearing aid batteries/repair
.. 302 ----- Miscellaneous uninsured.
====
15,381 --- Total


The dental was one implant and one crown, in addition to normal exams/fillings.

One pair of hearing aides cost $3,000 in 2018, that was a bargain. It is not on this 2019 list.

 

[harllee]

At age 68 my Traditional Medicare, G Supplement and Part D all together runs about $325 per month. The big expense I have is for dental. I have found that there is no good dental insurance so that is all out of pocket. In the last month I paid around $3000 for a root canal and crown. Ugh.

 

[DawgMan]

We are a couple living in Iowa. Our 2019 expenses were ...

3,252 ----- Medicare for both
1,135 ----- High deductible med supp for 71 year old
1,753 ----- No deductible med supp for 70 year old
.. 926 ----- Prescription drug coverage for both
.. 820 ----- Prescription drugs for both
.. 845 ----- Deductibles and coinsurance
.. 506 ----- Chiropractor not covered by Medicare
5,843 ----- Dental, eye exams/glasses, and hearing aid batteries/repair
.. 302 ----- Miscellaneous uninsured.
====
15,381 --- Total


The dental was one implant and one crown, in addition to normal exams/fillings.

One pair of hearing aides cost $3,000 in 2018, that was a bargain. It is not on this 2019 list.

Appreciate everyone's responses.

I almost forgot about dental. I have found dental can often make up a big part of your OOP in any given year. It appears that may linger on that way in later years. Did not think about hearing aids. None the less, lower costs than I have experienced in some time... I will take it!

 

[Teacher Terry]

Independent, Medicare is covering my chiropractor.

 

[aja8888]

Appreciate everyone's responses.

I almost forgot about dental. I have found dental can often make up a big part of your OOP in any given year. It appears that may linger on that way in later years. Did not think about hearing aids. None the less, lower costs than I have experienced in some time... I will take it!

I forgot dental in my post above. I had a bridge done this year and it was $2200. Add three cleanings, X-rays, etc and that's $400. DW just had normal cleanings, X-rays for $400.

Yes, getting old is expensive and don't forget that YOU WILL need medical care after 65!

 

[youbet]

Let's see.......

I have traditional Medicare, a type F Select supplement and Part D for drugs. DW wife has a Medicare Advantage Plan. We pay IRMAA. Total premiums + IRMAA for 2019 for both of us combined were $15,494.64. Then we dig into the non-covered expenses like dental and vision and OOP's and it adds up. We really didn't plan our post 65 retirement years to have medical expenses this high, but it is what it is.

Here's how I added it up for our 2019 fed taxes:

Premiums + IRMAA = 15494.64
Drug OOP = 2840.91
Provider OOP = 2460.90
Hosp/Clinic OOP = 2549.24
Labs/Xrays/Scans OOP = 107.48
Glasses/Contacts = 448.85

Total = 23,902.02

Provider OOP includes our dentist . Hosp/Clinic OOP includes some non-insured options I chose with my cataract surgery.

 

[aja8888]

Let's see.......

I have traditional Medicare, a type F Select supplement and Part D for drugs. DW wife has a Medicare Advantage Plan. We pay IRMAA. Total premiums + IRMAA for 2019 for both of us combined were $15,494.64. Then we dig into the non-covered expenses like dental and vision and OOP's and it adds up. We really didn't plan our post 65 retirement years to have medical expenses this high, but it is what it is.

Here's how I added it up for our 2019 fed taxes:

Premiums + IRMAA = 15494.64
Drug OOP = 2840.91
Provider OOP = 2460.90
Hosp/Clinic OOP = 2549.24
Labs/Xrays/Scans OOP = 107.48
Glasses/Contacts = 448.85

Total = 23,902.02

Provider OOP includes our dentist . Hosp/Clinic OOP includes some non-insured options I chose with my cataract surgery.

Congrats! You are ahead so far. It's great having Medicare! I'll bet those with ACA coverage can't wait to get to Medicare age!

 

[youbet]

Congrats! You are ahead so far.

Ehhhhh...... Thanks....... I think......

 

[pb4uski]

DW just went on Medicare.

Part B... $145/mo, Part D (Rx)... $13/mo, Medigap... $124/mo.... Total... $282/mo

 

[DawgMan]

Let's see.......

I have traditional Medicare, a type F Select supplement and Part D for drugs. DW wife has a Medicare Advantage Plan. We pay IRMAA. Total premiums + IRMAA for 2019 for both of us combined were $15,494.64. Then we dig into the non-covered expenses like dental and vision and OOP's and it adds up. We really didn't plan our post 65 retirement years to have medical expenses this high, but it is what it is.

Here's how I added it up for our 2019 fed taxes:

Premiums + IRMAA = 15494.64
Drug OOP = 2840.91
Provider OOP = 2460.90
Hosp/Clinic OOP = 2549.24
Labs/Xrays/Scans OOP = 107.48
Glasses/Contacts = 448.85

Total = 23,902.02

Provider OOP includes our dentist . Hosp/Clinic OOP includes some non-insured options I chose with my cataract surgery.

It appears I have forgotten about the IRMAA affect. Based on a quick google, am I reading this correctly, IRMAA could have a $13/mo - $75/mo bump in premium based on your MAGI from 2 years prior (as opposed to your MAGI for the year you file)?

 

[pj.mask]

One of my parents say they cross shop plan D? With telling the pharmacist she has no insurance and it sometimes comes out cheaper getting a generic with no insurance vs plan D.

Every time I see the OOP health care costs (after insurance) I am blown away. Our country is so expensive.

 

[ShokWaveRider]

Mine are as Follows (Monthly):

Medicare Part B: $144.60
Medicare Part G: $178.25
Medicare Part D: $13.20

Medicare Deductible (Monthly): $16.50

Total $352.55

DW's (61 Years Old) Stellar ACA Plan: $61.22 Per Month, $5/$10 Doc Visit Copays, $2400 Max OOP. So Far this year she has Paid Only the Premium as 5 doc Visits have no copays, and she takes no drugs.

So for us ACA is more cost effective at this point.

 

[athena53]

Age 67, single. Monthly premium for Medicare B + United Healthcare supplement + Prescription plan is $545/month including a 100% IRMAA. I'm on only one prescription and it runs $345 for the first time for about a 4-month supply, $47 each for 2 refills (deductible has been met) so $37/month average.

No hearing aids, glasses through Costco/Zenni, so no major expense there. Dental fluctuates wildly as I end up with something major maybe every 2-3 years (crown, root canal, implant) despite 4X annual cleanings (recommended due to my implants). Dental insurance not worth it to me.

I use RequestaTest.com to get bloodwork more often than Medicare will allow and for tests Medicare kicks back as "not medically necessary" even though I have high total cholesterol and fasting blood glucose over 100. For under $100 I can get tested and see if tweaks I'm making to my diet and supplements are having any effects.

For me, prescription meds are the wild card. Partly luck, partly healthy living habits, but so far they've been minimal. I know that could change in the blink of an eye.

 

[T-Minus]

Great thread. I’m 60 and retired and the excellent information provided above helps me plan for future medical expenses to a much more accurate degree than my earlier estimates. Thanks everyone!

 

[SlowlySaving]

Congrats! You are ahead so far. It's great having Medicare! I'll bet those with ACA coverage can't wait to get to Medicare age!

LOL!! Great thread! It looks like insurance costs only get more expensive as we get older! I wonder how everyone affords this in retirement?!

 

[Sunset]

LOL!! Great thread! It looks like insurance costs only get more expensive as we get older! I wonder how everyone affords this in retirement?!

Well the good news is, while medical care gets more and more expensive as a person gets older, it will suddenly go to zero

 

[tb001]

Great thread. I’m 60 and retired and the excellent information provided above helps me plan for future medical expenses to a much more accurate degree than my earlier estimates. Thanks everyone!

Agree. We have a plug for medical costs after we go off aca, but it’s been very much a finger in the air estimate.