Healthcare Costs

Retirement Health Coverage Costs 2018

By December 28, 2017 No Comments

With the bulk of health coverage costs for retirement in 2018 remaining constant from 2017, the projected total cost of health coverage for a couple in retirement is still expected to increase.

A couple aged 65, where the female is projected to live until age 87 and the male until age 85, should expect to incur just over $343,700.00 in health coverage expenses.

This projection is based on a couple being considered fully insured through Original Medicare, which consists of coverage from Medicare Parts A and B, as well a Medicare Part D prescription drug plan and a Plan F Supplemental Plan (Medigap Plan).

Any co-pays, deductibles, and any other out of pocket costs from medications are not factored into this cost because prescription drug plan (Part D) may be tailored to meet the specific needs of a person thus reducing or eliminating many of these expenses.

In terms of Medicare Income Related Monthly Adjustment Amount (IRMAA), also known as premium surcharges for higher income retirees, a couple who exceeds the income levels and remains in those income brackets throughout retirement has the following projected expenses:

Planning for healthcare and the costs associated with them have become a major concern for those in and nearing retirement, and rightly so. With Medicare premiums historically inflating at rates above 7.5 percent and being projected by the Medicare Board of Trustees to continue to inflate by over 5 percent, the time to plan for this cost is now.

With the cost for Medicare being based on the amount of income generated throughout retirement the time to meet with a financial professional who understands these regulations is now more important than ever.


Dan McGrath

Dan McGrath

Mr. McGrath is a Co-Founder of Healthcare Retirement Planner as well as Jester Financial Technologies. He is a best selling author, "What you don't know about retirement will hurt you" and is a nationally recognized speaker on how health costs impact retirement.