Here’s how much Medicare could cost you in retirement
- Date: 02-Jul-2020
- Source: CNBC
- Sector:Healthcare
- Country:Oman
Here’s how much Medicare could cost you in retirement
Sometimes, it comes as a surprise to older folks that Medicare is not free.
Depending on the specifics of your coverage and how often you use the health-care system, your out-of-pocket costs could reach well into six-figure territory over the course of your retirement, according to a recent report from the Employee Benefit Research Institute.
To cover premiums and out-of-pocket prescription drug costs from age 65 on, you might need $130,000 if you're a man, according to the study. For a woman, it's $146,000.
EMTs Daniel Kiga (L) and Stephanee Richards transfer a patient out of the acute care COVID unit at Harborview Medical Center on May 7, 2020 in Seattle, Washington.
Karen Ducey | Getty Images
"Some are surprised that after working for decades and paying Medicare taxes, they still have to shell out money," said Elizabeth Gavino, founder of Lewin & Gavino in New York and an independent broker and general agent for Medicare plans.
The report relies on the premium costs associated with original Medicare (Part A hospital coverage and Part B outpatient coverage) paired with a specific "Medigap" policy (Plan G, which pays for many of Medicare's cost-sharing, including co-pays, co-insurance and some deductibles). The calculation also included premium costs for Part