Medical Expenses for Retirees Are More Expensive Than Ever – Here’s What You Can Do About It

.AARP’s Report Shows Medical Expenses for Retirees Continue to Rise

Social Security payments are supposed to help provide stability in your financial life during retirement. All too often, retirees find that their checks just don’t stretch far enough, though. Consider the AARP’s 2021 report, which highlights a shocking statistic:

 The average retiree spends almost $6,200 per year on healthcare-related costs that aren’t covered by their insurance or Medicaid.

 Now, consider the fact that the average retiree only brings in $19,884 per year in Social Security payments. That’s an incredible 31 percent of your meager income spent on things like uncovered co-pays, deductibles, and the like.

 And, while this information is available, the situation often comes as a nasty shock to retirees who are relying on their Social Security checks for things like groceries and to pay their electric bills each month. It doesn’t have to be this way, though. Retirees can fight back and hold onto their hard-earned Social Security payments.

Review Your Medicare Plan Regularly

 One of the first things to do to control medical expenses for retirees is to review your Medicare plan regularly. Are you still in the best plan for the money? Remember that both Medicare supplement and Medicare Advantage plans update their pricing periodically, so your current plan may eventually not fit your needs. Your needs will also change as you age, so it’s important to make sure that your plan covers them.

Ask for Upfront Pricing

 Too often, healthcare sticker shock could have been avoided if the patient had asked about pricing upfront. To control medical expenses for retirees, always make sure to verify what you’ll be paying beforehand. This is particularly important if it’s something that may not be fully covered by Medicare or your Medicare sSupplement plan.

Double-Check Pharmacy Pricing

 Chances are good that you assume your Prescription Drug Plan (PDP) offers the lowest price for your medications available. However, that’s not always the case. Make sure you double-check pharmacy prices on medications.

 Walmart is often cheaper than what you’ll be billed through your prescription plan. Don’t limit your search and comparison to Walmart alone, though. Grocery store pharmacies, particularly Publix and Kroger, are increasingly competitive and can help control rising medical expenses in retirement.

Still Earning an Income? Put Some of It Away!

 These days “retirement” doesn’t necessarily mean not working. More and more retirees find that they need at least a part-time job to make ends meet, and quite a few work full-time jobs.

 In fact, the Washington Post points out that 1.5 million retirees have reentered the US labor market between 2021 and 2022. AARP reports that 13 percent of the retirees they surveyed said they were working or looking for work.

 While that might not be how you dreamed about spending your golden years, it does mean that you might have the opportunity to sock away some cash for use in paying your unexpected medical bills.

No Long-Term Care Insurance? Think about Getting Covered

 Long-term care insurance might not be something you’ve considered, but it’s all too easy to find yourself or your spouse in a situation where it’s required, and you lack the money to pay for it. With long-term care insurance, you’ll be able to better control medical expenses for retirees.

 However, you’ll need to carefully compare your options when it comes to carriers and policies to get the right fit and affordable coverage. Also, remember that pricing is based on your age at enrollment, so it pays to sign up sooner rather than later.

Work with Your Personal Benefits Manager to Unlock More Savings

 Finally, make sure you work with your Personal Benefits Manager to unlock additional ways to reduce your costs and save more of your Social Security money. Whether you want to change coverage or just make sure that your current plan is the best fit for your needs, they can help.

To your health and wealth,

Wiley P. Long, III
President – MediGap Advisors