Medical Expenses in Retirement

[SumDay]

In planning for retirement later this year, I seem to be re-working our budget weekly to make sure FireCalc is really accurate. Maybe if I run it 50 more times I'll get some real assurance.

I stumbled across this retiree/tax reform article today, which indicates some hefty amounts for medical care.

In Updated Charts, What 8 Seniors' Tax Bills Will Be With Tax Reform

I searched ER and found this 2014 thread about medical expenses in retirement.

DH will be on Medicare in June, and my Retiree Medical premium for myself will be ~$300 a month with a $3K deductible. I hear and read that people spend $20,000 a year on medical expenses!

If you're getting insurance through ACA, I can believe $20K is realistic, but I just want to make sure I'm not missing something. I'll probably continue contributing the max to my HSA until I turn 65, so there's ~$8K a year, but do Medicare deductibles, co-pays, prescriptions and supplemental/advantage plan premiums really cost that much?

If this has been discussed more recently, have mercy. I searched and only found the 2014 thread.

 

[W2R]

do Medicare deductibles, co-pays, prescriptions and supplemental/advantage plan premiums really cost that much?

I am probably in the best possible situation for medical expenses. I am on Medicare, and my federal employee/retiree insurance converted to a Medicare supplement of some sort, with no reduction in price but greater benefits like no deductibles or co-pays. Dental is another matter and I pay that completely out of pocket. I have needed 4-5 dental implants and additional dental work. Dental plus my share of high prescription costs add up.

Medicare Part B itself costs me $134/month, and insurance costs me $245/month. But really, other than dental and prescriptions, I have little else to pay.

Here is what I spent so far on all medical expenses in the four years since I reached Medicare age:

2014: $4,972
2015: $8,113
2016: $11,953
2017: $14,975

Hope this helps! If you have good teeth or dental insurance that is worth its cost, that might make all the difference. I don't have either, never have.

 

[ejman]

Both of us on Medicare since 2015. Medical expenses:

2015 - $9,764
2016 - $11,242
2017 - $7,260

Some dental work in 2015, 2016 accounts for the difference. 2017 is about the base rate with nothing major happening - Medicare plan B and Supplement plan G.

 

[ivinsfan]

I am probably in the best possible situation for medical expenses. I am on Medicare, and my federal employee/retiree insurance converted to a Medicare supplement of some sort, with no reduction in price but greater benefits like no deductibles or co-pays. Dental is another matter and I pay that completely out of pocket. I have needed 4-5 dental implants and additional dental work. Dental plus my share of high prescription costs add up.

Medicare Part B itself costs me $134/month, and insurance costs me $245/month. But really, other than dental and prescriptions, I have little else to pay.

Here is what I spent so far on all medical expenses in the four years since I reached Medicare age:

2014: $4,972
2015: $8,113
2016: $11,953
2017: $14,975

Hope this helps! If you have good teeth or dental insurance that is worth its cost, that might make all the difference. I don't have either, never have.

Just for clarity my DH is on Medicare and pays about the same as W2R for coverage and we don't pay one penny extra to the doctors. Drugs from the VA so I can't comment on that part. That extra 245 a month covers a lot but it cost money. I think a gold plated Medicare supplement would be in that ballpark depending on where you live.

 

[W2R]

Just for clarity my DH is on Medicare and pays about the same as W2R for coverage and we don't pay one penny extra to the doctors. Drugs from the VA so I can't comment on that part. That extra 245 a month covers a lot but it cost money. I think a gold plated Medicare supplement would be in that ballpark depending on where you live.

That does sound quite similar! I am so glad that coverage is available for you and others - - did not know that. My medical plan is the contraversial "Cadillac" plan that Congressmen can get but I'll leave it at that to avoid politics. There are cheaper plans that I could get, but this is one type of expense where I prefer to Blow that Dough and know that I have the best insurance I can get.

Like you, I haven't paid a cent for doctors, my cataract surgeries, or anything like that. I haven't been hospitalized but my understanding is that wouldn't cost me anything either.

 

[JoeWras]

Well, let's see. For my Megacorp retiree plan, myself + spouse premiums are $17k per year. Deductible is $4500. Not hard to reach that. So we are at $21,500. Then you have dental and others...

Pretty easy to hit $20k.

This was our worst case planning we started 10 years ago or so. Fortunately, DW has weeks to go before she gets a benefit for retirees that includes medical. Should be out of pocket less than $1k per year for her. I can get spouse insurance if I retire. (Great excuse to retire, eh?) For about $7k per year. A bargain.

At least that's this year's numbers.

I looked at ACA, and the networks were so limited. Scary even. I could not find an ACA network that included both my PCP and some specialists we see from time to time. However, both my and DW's retiree plans have wide ranging networks that include them both.

 

[Katsmeow]

DH is on Medicare. His Medicare premium is $134 per month and his supplement premium Plan F is about $215 a month (that goes periodically). Last year for him he had no other significant medical expenses. However -- and this is a big point -- he takes no regular medication. He a prescription plan which in his case is paid for by his former employer. He has had a few short term prescriptions over the years but no expensive medications. On the other hand, I know people who have to go through the donut hold every year and have large prescription expenses even with a prescription plan.

He has good hearing so he hasn't had to pay for that kind of thing. He gets new glasses usually every other year so that is a non-covered expense.

Also we get retiree dental care with a premium for the family of $41 a month. The coverage amount for the year is limited though. For most years it covers everything we have done. But, if he or I had to have an implant for example it would exceed that amount and would be a big expense. My mom just broke a tooth and had to have an implant and it was I think $6000. That kind of cost can add up quickly if you have to have it done to a lot of teeth.

I am not yet on Medicare. I am covered by retiree insurance. When DH retired 7 years ago the family premium for the retiree insurance which covered him (he was not yet on Medicare) and me was only a few hundred dollars a month. Now the premium is much higher. Megacorp subsidizes part of it but the net cost to us for me and one child is almost $18000 per year. Deductible is $3k If it was just me and no child my net cost would be about $600 per month. And I would have a $1500 deductible and co-pays.

 

[REWahoo]

... do Medicare deductibles, co-pays, prescriptions and supplemental/advantage plan premiums really cost that much?

DW and I are both on Medicare and are, thankfully, pretty healthy. Last year our combined expenses for Medicare, Medigap (high-deductible Plan F), Part D, deductibles, drugs, and co-pays, plus all other non-dental medical costs were less than $6K total.

 

[MBSC]

DH will be on Medicare in June... I'll probably continue contributing the max to my HSA until I turn 65, so there's ~$8K a year...

Once he is on Medicare you will only be able to contribute the individual HSA amount plus an individual $1000 age 55+ catch-up assuming your plan is HSA eligible.

...do Medicare deductibles, co-pays, prescriptions and supplemental/advantage plan premiums really cost that much?

Medicare does not cover routine dental, vision, or hearing expenses.

Medicare Part D (drugs) has no max OOP. There is a 5% coinsurance when you exit the 'donut hole' but it can still add up. The following is from another thread.

...most drugs under Part D are not "too expensive", until you have a serious illness. Or you hit the donut hole, like my DW is in right now. Or both happens.

Yesterday we paid $420+ for one 6 month injection (not the actual injection, just the drug) of Prolia. Today, I picked up her monthly COPD treatment drugs (2), Brio and Spiriva (sp?). The two today with the Part D 30% donut hole discount came to $286. So we dropped $706 for Part D drugs. I estimate our OOP for her drugs this year will be ~$7,000 after Part D plan discounts. Add about $360/yr for plan premiums too. And yes, we SHOP the plan annually.

My DW is an exception since she is pretty ill with some uncurable problems.

 

[Shanky]

For a couple under age 65, spending $20K is pretty easy to do. Even with out any medical expenses at all, spending $15K on just the insurance is common. It does not look likely to get cheaper with for the 55-65 set with the alternatives being discussed.

 

[braumeister]

Medical expenses in retirement?
The way I look at it, the answer is "whatever it takes."

That's why I have a big cushion built into my spending plans.

 

[MissMolly]

For us, hubby on Medicare so $134/month for that and $75/month for PPO Advantage plan. $1,500 MOOP on that plan. I will start Medicare later this year so $134 for me for that and retirement plan picks up my PPO Advantage plan cost. So costs for insurance will be $134 x 2 x 12 = $3,216 and $75 x 12 = $900 for a grand total of $4,116 for both of us to pay for insurance. We rarely go to doctors. Last year medical expenses were $45 for me to go to eye doctor. So far this year I have had 2 cataract surgeries so medical out-of-pocket is around $1,100 so far (deductible and co-pays). I've just about hit my MOOP so don't anticipate a lot of other expenses. We are not on any prescribed medications at all.

 

[Winemaker]

Premiums for DW and I are charged 7/1 thru 6/30, annually. Last bill was $22,080, $10/office visit, $25 ER. $5,000 max OOP. That covers vision, which my eye doctor for the past 27 years, does not accept. Sears accepts my insurance for glasses, but we just joined Costco, it's cheaper and they don't accept. Dental is covered for cleaning, checkups, fillings, but not crowns. Total expenses last year were $28,000, rounded. We are several years from Medicare.

 

[Luvdogs]

I never realized how good we had it. Always thought Medicare was cheaper than retiree employer- subsidized insurance.

We are paying just over $500 per month for our retiree insurance. This includes us and our two kids who will age out within a couple of years. We have $1100 deductible. The deductible appears to only be for hospitalization because dr's visits are around $20-$30. The max out of pocket is around $3K.

Effective today it went down to about $300 per month for the three of us as DH started Medicare-today.

He is paying just for himself about $420 per month including part B, supplemental Plan F and the prescription coverage. Supposedly almost everything is paid for unless it is a super extended period in the hospital. The prescriptions will be minimal unless he gets prescribed higher tiered-then the costs go up-fast! He also gets about $1000 toward it from his prior employer.

So ours is $300 for three of us + $420 for DH minus 80 (from his prior employer) so around $7700 for four of us.

Once the kids age out it will go down another $100 per month so it will be about $6500 for the two of us until I am Medicare eligible.

 

[NYEXPAT]

Will turn 65 later this year, have had free gov't HI for the past 6-7 years through my Wife's Job. Also get any medication free through her boss.

My total medical expense for the past 6-7 years has been Zip,Nada,Zilch.
2018, after a long absence, I started going to the Dentist. So far I am out of pocket under $100.00.

I do have a private policy for our young children that runs about $1200 a year and pick up any costs for our Nanny/Housekeeper which are negligible.