Employee Benefits Research Institute (EBRI) Study Says Study: Medicare Gaps Cost Retirees

Medicare and even supplemental Medicare insurance plans won’t pay for almost $41,000 in recurring health care costs — such as routine checkups, co-pays, and visits to the dentist — for the average retiree, according to a recent study. “A lot of people assume they are going to get on Medicare and then all their health costs are covered,” said Nicole Duritz, AARP’s vice president for health, education, and outreach. “They understand there is a premium. But they don’t understand that, like all health plans, some things are covered and some things are not covered.”

The EBRI study found that recurring health care costs are generally predictable for people between 65 and 90. Assuming an inflation rate of 2 percent and a lifespan of 90 years, people retiring at 65 would need to spend $40,798 of their own money on such costs, it said. Annually, that works out to an estimated $1,885, which doesn’t include premiums for Medicare or a supplemental plan, or non-prescription over-the-counter drugs. “I think the good news is that the study says it doesn’t rise much as you age,” said Sean Nicholson, a Cornell University economist specializing in retirement health issues.

Source/more: USA Today via the Poughkeepsie Journal

David Wingate is an elder law attorney practicing in Frederick and Montgomery counties, Maryland. The practice includes trusts, wills, powers of attorney, Medicaid, and asset protection.