$250,000 average medical bills in retirement

[aja8888]

Here's some hard numbers (ours):

Both on Medicare with Sup Plan F (the best) and Part D for drugs.

Currently we (2) pay (combined):

Medicare: $210/month
Sup Plan F (not high deductible): $450/month
Part D: $70/month

Or: $730/month (~$9,000+ per year for us as a couple on Medicare with the best Supplemental policy.)

Now that is only for insurance, not bills, although Plan F covers all deductibles, copays, excess charges, etc.

What's not covered is hearing aids, dental, corrective glasses, part payment on prescriptions.

This year, and last, DW, who has COPD, has cost us out of pocket over $5,000 in excess prescription charges.

Good thing no one has cancer here.

So, if we make 25 years in retirement on Medicare, then our cost of insurance will easily be over $250K.

Then add in all the other stuff that can cost and not be covered. Heck, hearing aids are $5K alone and last year we spent $8K on new dental bridge work.

Better plan for the worst if you are looking at costs into Medicare years.

 

[kaudrey]

I can share some second-hand info that makes me think the numbers are quite reasonable:

My uncle is 86 and has Alzheimer's. My aunt is paying $4K a month out of pocket to have home health care. How long will that last? Who knows? But if it lasts a few years, $48 a year x $?? will add up quick.

My mother is 77 and has been battling cancer for 7 years. I don't know the costs, but any such long, drawn out process isn't going to be fully covered. Also, she has had quite a number of expensive dental procedures over the last 10 years - easily $5k some years.

Alzheimer's runs in my family on my mother's side. Her mother had it, and my mother is showing signs. My grandmother spent 14 years in a nursing home. All of her assets went to care, and then she went on Medicaid.

I don't think it is unrealistic to plan on $10K a year for 25 years in retirement for DH and I at all.