In 2019 the total cost for retirees to cover their healthcare costs is going to increase once again even though premiums within Medicare have stabilized over the last 2 years.
For a couple, both 65 years old today, projecting to live until age 87 for the female and 85 for the male the expected cost to insure themselves will cost just over $360,000.00 for their Medicare premiums. This is, roughly, a 4.5 percent increase from 2018.
This projection is based on a couple being considered fully insured through Original Medicare. This consists of coverage from Medicare Parts A and B, as well a Medicare Part D prescription drug plan and a Plan F Medigap Plan (Supplemental Plan).
Why the increase:
Even with the Medicare Part B premium only increasing by just 1.1% from 2018 to 2018, Medicare Part D premiums, on a national average decreasing by as much as 10% in the same time period and the premium for Supplemental coverage (Medigap Plan F) remaining flat the issue is the projected future rate of premiums according to the Medicare Board of Trustees.
From 2019 to 2027 Medicare premiums, on average, are expected to increase by over 5.5 percent and with the Baby Boomer generation advancing faster towards retirement and age 65, costs are expected to continue at least at this rate for the near future.
Planning for healthcare has become a major concern for many people nearing or in retirement and rightly so with costs being projected to be one of the largest expenses they will face for the rest of the lives.
The issue: which financial firm will help them plan for this according to federal law?