You may need to cover healthcare costs Medicare doesn’t fully pay for, including dental, vision, prescriptions, copays and medical supplies. Planning for these out of pocket expenses can help you avoid budget surprises in retirement.
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7 Common and Unexpected Healthcare Costs You Need to Know When You Retire
Key takeaways
- Medicare may not cover all healthcare expenses , including dental, vision, prescriptions and some over-the-counter costs
- Copays, deductibles and uncovered services can add up quickly, especially with frequent visits or ongoing care
- Supplemental insurance, prescription drug, dental or vision plans may help reduce out-of-pocket costs
- Planning ahead can help you avoid budget surprises and feel more confident about healthcare expenses in retirement.
Healthcare costs can be one of the biggest and most unpredictable expenses in retirement, especially when coverage gaps lead to out-of-pocket spending.
The following are seven common and unexpected healthcare costs in retirement you may not have considered. With careful planning, copayments and services that are not covered by your insurance don’t have to come as a surprise.
Perhaps the most important information you need to know may be found at medicare.gov, the website for the federal health insurance program for people who are 65 and older. In addition, you can take steps to prepare financially so your retirement years can truly be golden.
Over-the-counter supplements
Many doctors now routinely recommend taking over-the-counter supplements to address certain issues. Although Medicare Part B may pay for supplements in some cases, only certain ones are covered. The diagnosis of a specific medical condition is also required. If your doctor recommends supplements as part of your treatment plan or for general wellness, you may have to pay for them yourself.
Will Medicare cover my eye doctor expenses?
It’s normal to experience vision changes as you age, and an eye exam is recommended for everyone at least every two years for those aged 65 and older. Although Medicare Part B may cover eye exams for certain eye-related illnesses and injuries, routine eye exams are not covered. Prescription eyeglasses and contact lenses are also not covered. If you require corrective lenses, a vision insurance policy can be purchased to assist you with this expense.
What does Medicare cover for therapy services?
Therapy services are sometimes necessary to help people fully recover from an injury or illness. Physical or occupational therapy may be required, for example, after recovering from a fall. And speech therapy is often used to assist in the recovery of a stroke. If you need therapy services and they are deemed medically necessary, you may likely have a 20% copayment if you have already met your Medicare Part B deductible.
Therapy services
Therapy services are sometimes necessary to help people fully recover from an injury or illness. Physical or occupational therapy may be required, for example, after recovering from a fall. And speech therapy is often used to assist in the recovery of a stroke. If you need therapy services and they are deemed medically necessary, you may likely have a 20% copayment if you have already met your Medicare Part B deductible.
How much will I have to pay when I go to a doctor?
Doctor visits in your retirement years may be more frequent than when you were younger. In addition to visiting your primary care provider, you may also be referred to specialists for additional consultations and treatment.
Medicare Part B typically covers 80% of doctor visits after you have met your deductible. Copayment costs can quickly add up, however, if follow-up appointments are needed. A Medigap supplemental insurance policy can be purchased to assist you with doctor visit copayments and other costs associated with your healthcare in retirement.
What does Medicare cover for prescription drugs?
The cost of monthly prescription drugs can be a major expense without coverage. Although Medicare Parts A and B do not include prescription drugs, a prescription drug plan (Medicare Part D) can be added for a monthly premium. Prescriptions purchased through Medicare Part D require a deductible and copay.
Will my medical supplies be covered?
Medicare Part B may cover certain medically necessary supplies and equipment that are used at home including:
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Wheelchairs
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Hospital beds
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Oxygen equipment
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Blood sugar meters and test strips
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Other equipment
Additional expenses may be incurred, however, for supplies that are used to increase convenience or comfort like air humidifiers, stairway elevators, grab bars and others. Also, common medical supplies like bandages and gauze are not covered by Medicare.
FAQs
Plan for premiums, deductibles, copays, prescriptions, doctor visits and services Medicare may not fully cover, such as routine dental and vision care.
No. Medicare can help with many medical expenses, but it does not cover everything. You may still have out-of-pocket costs, depending on your coverage and the care you need.
Routine dental care, eye exams, eyeglasses and contact lenses are generally not covered by Original Medicare, though some Medicare Advantage plans may offer extra benefits.
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