Most retirees rely on Medicare once they turn 65 to cover their healthcare expenses. The government-run program offers coverage for doctor visits, hospital stays, lab tests, prescription drugs, and more. But some people do not realize that Medicare covers few healthcare costs in full, and there are some costs that it does not cover at all. If you are not prepared to cover these costs on your own, you could be in serious trouble.
Below, I discuss four of the most common healthcare costs that Medicare does not cover, along with ways that you can prepare for
in them to pay for dental care as well. These accounts allow you to set aside pre-tax earnings, and as long as you spend the money for a qualifying medical expense, you will not pay taxes on it when you withdraw it either. Used in combination with a dental savings plan or supplementary insurance policy, they will save you even more.
2. Vision which
Medicare Part B covers some preventive and diagnostic eye examinations, including glaucoma and macular degeneration tests, and routine eye examinations for those who have diabetes. And if you need cataract surgery, Medicare covers this as well as the cost of any vision-correcting products you need after the surgery. You will, however, have to pay your deductible and a 20% copay unless you have a supplemental insurance policy that covers them.
However, if you are a healthy individual who needs glasses or contacts, including some eye examinations, glasses, and contact lenses, fall to you.
Some Medicare Advantage plans to provide coverage for routine eye examinations and other vision services. However, Medigap policies typically do not, so you will have to look into a vision savings plan to help reduce your out-of-pocket costs. This is worth considering if you know you are going to have a vision cost in retirement, but if your eyesight is good, you may not feel the need to spend extra money on vision care
3. Hearing aids
One of the most surprising omissions from the list of things that Original Medicare covers is hearing aids. You pay 1
Medicare Advantage plans may cover hearing aids, depending on the plan you choose, but you will still have to pay deductibles and possibly copays in addition to your monthly premiums. There are also some charities that provide free hearing aids to low-income individuals
4. Long-term care
If you become physically or mentally incapable of caring for yourself in your old age, you may need to either hire someone to care for you or move to a nursing home. A semi-private room in a nursing home averaged $ 225 per day back in 2016, according to the most recent statistics from the U.S. Department of Health and Human Services, and your costs could be much higher if you live in a costly area
Medicare does not pay for any of these costs, so you might want to consider investing in a long-term care insurance policy. These specifically cover the costs of long-term care, but they are not cheap. Premium can average more $ 2,700 per year, according to LifePlans.
If you can not afford to spend that much on a policy, start saving as much as you can in an HSA, if you're eligible for one. To qualify for an HSA, you must have a high-deductible health plan – one with a deductible of at least $ 1,350 for a single adult or $ 2,700 for a family. In 2019, individuals may contribute up to $ 3,500 to HSAs, and families may contribute up to $ 7,000. People 55 and older may contribute an extra $ 1,000. (19659002) Nobody can predict just what kind of medical expenses you will incur in retirement, but the chances are, you will need at least one of the services listed above. Planning for them today can help ease the burden on finances later.