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Understanding Healthcare Costs & Medical Expenses in Retirement

An elderly man is happy to better understand the healthcare costs and medical expenses to expect in retirement

You’re first eligible for Medicare at 65—technically, three months before your 65th birthday—but some individuals still work full-time when this happens. It’s not only important to know your Medicare options at retirement, but to also understand what kind of expenses come with it. Learn more about the cost of Medicare and how having the right coverage can be in your benefit below.

Average Healthcare Costs & Medical Expenses

Determining a true average cost of Medicare can be complicated because “Medicare” is not a single product nor is it the same from one person to the other. It’s made up of different parts and options, and each plan has its own costs attached. Common Medicare expenses include premiums, copayments, coinsurance, deductibles, and out-of-pocket costs. 

Medicare Part A & B (Original Medicare)

Original Medicare—also known as Medicare Part A and Medicare Part B—provides standard basic coverage for eligible Americans 65+ and those younger than 65 with a disability. Original Medicare only covers about 80% of your medical costs, so it’s important to consider additional options to cover the gap. 

Medicare Part C (Medicare Advantage)

Medicare Advantage Plans (Medicare Part C) serve as an alternative to Original Medicare, with some plans including prescription drug coverage and/ or additional benefits such as vision, dental, or wellness programs. Some plans even have premiums as low as $0/month.*

Learn more about Medicare Advantage Plans.

Medicare Part D (Prescription Drug Plan)

Medicare Part D, also known as prescription drug coverage, is provided and paid for separately from Original Medicare. It is a federal program that began in 2006, providing Medicare beneficiaries access to retail prescription drugs at affordable copays. Medicare Prescription Drug Plans are intended to give you broader healthcare coverage and potentially save you money.

Learn more about Medicare Prescription Drug Plans

Medicare Supplement Plans (Medigap)

Medicare Supplement Insurance Plans, also known as Medigap, supplements Original Medicare, helping cover some of the healthcare costs not covered by Parts A and B. Medigap coverage can help cover out-of-pocket costs such as deductibles, coinsurance and copayments. The monthly premium for this kind of plan varies from person-to-person, but the premium cost is often offset by lower annual out-of-pocket costs.  

How Having the Right Medicare Plans Can Help

Your healthcare needs are unique to you, so it’s crucial to ensure everything is covered. By working with SelectQuote, we can help you compare available plans and determine which is right for you. We take the time to better understand your situation, and in just minutes we can provide you with unbiased quotes from some of the most trusted insurance companies in the U.S. The service is free and there’s no obligation to enroll.

*This is not a complete listing of plans available in your service area. For a complete listing please contact 1-800-MEDICARE (TTY users should call 1-877-486-2048 ), 24 hours a day/7 days a week or consult www.medicare.gov.

SelectQuote is a licensed and certified representative of a Medicare Advantage HMO, PPO and PFFS organization and a stand-alone prescription drug plan with a Medicare contract. Enrollment in any plan depends on contract renewal.

SelectQuote complies with applicable Federal civil rights laws and does not discriminate on the basis of race, color, national origin, age, disability, or sex.

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