Medicare Won’t Cover All Your Retirement Health Care Expenses
Once you hit age 65, most Americans are eligible for Medicare, which can take care of most of your medical expenses in retirement — but not all.
Erik Brenner, President of Hilltop Wealth Solutions, spoke with Sunny 101.5’s Traci Cappellman on why Medicare won’t cover all your health care expenses in retirement — and how you can prepare.
Hilltop Wealth & Tax Solutions · Hilltop Wealth Helps Prepare You for Medical Expenses in Retirement
TRACI: Erik, many people go into Medicare thinking they’ll be covered for everything — but often, NOT covered medical expenses hit retirees hard. So, our listeners don’t end up with unexpected medical bills in retirement. Can you tell us what isn't generally covered by Medicare?
ERIK: The three significant expenses not covered by Medicare are dental, vision, and hearing. And it often surprises new Medicare enrollees.
Medicare does not cover dentures, ranging from $1,000 to $5,000 and beyond for a complete set. For example, a single tooth implant can set you back $4,000. Routine vision checks and glasses also are not covered.
The good news is retirees can purchase a relatively inexpensive Medigap policy from most insurance companies to provide more extensive dental, vision, and hearing coverage.
TRACI: Obviously, there’s a lot to learn about Medicare. Can you help us understand the basics — the different coverage options, how to enroll, and so on?
ERIK: Medicare is individual health insurance offered to U.S. citizens and other eligible individuals based on age, disability, or a qualifying medical condition.
Medicare coverage includes Medicare Part A and Part B. Called “original Medicare,” Parts A and B are offered by the federal government.
There’s also “Medicare Advantage” or Part C, and Prescription Drug Coverage, Part D, which private insurance companies offer.
Private, supplemental insurance is referred to as Medigap. These plans help pay for out-of-pocket expenses that Medicare Parts A and B don’t cover.
TRACI: For half a century now, Medicare has provided health insurance to Americans 65 and older — as well as to people with disabilities. But qualifying is NOT automatic. How do you determine if you are eligible?
ERIK: You qualify for full Medicare benefits if:
- You’re age 65 or older; or,
- You are a U.S. citizen or a permanent legal resident who has lived in the U.S. for at least five years; and,
- If you or your spouse is a government employee or retiree who has paid Medicare payroll taxes while working.
Also, you may qualify for full Medicare benefits under age 65 if:
- You’ve been entitled to Social Security disability benefits for at least 24 months — and that need not be consecutive; or,
- You have Lou Gehrig’s disease, also known as ALS; or,
- If you have permanent kidney failure requiring regular dialysis or a kidney transplant.
TRACI: Thank you, Erik. Whether you’re just starting with Medicare, need to brush up on the facts, or are helping a loved one, it pays to talk with an expert. Hilltop Wealth Solutions offers independent and objective advice to support your Medicare journey.
Visit HilltopRetire.com or call (574) 475-7366 to sign up for a FREE complimentary retirement assessment.
Disclaimer
Hilltop Wealth Solutions is a registered investment adviser. This is not intended to be relied upon as investment advice, nor an offer to solicit to buy or sell any securities.