Medicare is a valuable resource for almost every retiree. It covers many health care costs, including hospitalizations, doctor’s office visits and even prescription drugs, depending on the types of Medicare plans you choose.
However, Medicare doesn’t cover every health care cost in retirement. In fact, Fidelity estimates that the average 65-year-old couple will spend $260,000 on out-of-pocket health care expenses in retirement.1 That figure includes costs such as premiums, copays, deductibles and more.
In fact, there are a number of items that aren’t covered by Medicare. Depending on your plans for retirement, these types of care could play a major role for you. If so, you may want to explore alternatives or supplemental forms of coverage. Below are three common costs in retirement that aren’t covered by Medicare:
Do your retirement plans include lots of travel around the world? If so, you may want to investigate the health care systems in your destination countries. That’s because international medical treatment is generally not covered by Medicare.
What are your options? If you’re relocating to a new country, you may qualify for the country’s government-backed system, if it has one. If not, you may want to look at private supplemental options. While it may not be ideal to pay for both Medicare and a private policy, you certainly don’t want to be without coverage while abroad.
Dental, Vision and Hearing
Coverage for dental, vision and hearing care is nearly universal among employer health insurance plans. That’s why many retirees are surprised to learn that these types of treatments aren’t covered under Medicare.
Fortunately, you have some options available. One is something called Medicare Advantage. That’s a program in which private insurers offer Medicare coverage bundled together with add-ons, like dental, vision and hearing.
Also, Medicare will cover treatment in these areas if they’re related to a real health issue. For instance, if you have hearing loss related to a stroke or other ailment, Medicare would possibly then cover hearing care.
According to the U.S. Department of Health and Human Services, nearly 70 percent of today’s 65-year-olds will need long-term care.2 Many will need that care for years, and the price tag could be hefty. In fact, long-term care costs can be sizable enough to drain your retirement savings.
Medicare doesn’t usually provide coverage for long-term care. Medicaid does, but you need few assets and little income to qualify. Long-term care insurance could be an effective solution. You pay premiums today in exchange for coverage and protection in the future.
Do you have a plan to pay for all the costs that aren’t covered by Medicare? If not, let’s talk about it. Contact us at J. Harris Financial today. We welcome the opportunity to help you analyze your needs and develop a strategy. Let’s connect soon.
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