Health care can be expensive, and figuring out how you’ll pay for it as you age can feel overwhelming. However, making a plan and doing some research to understand the insurance system and your options can be worth the effort.
Explore insurance options
Check to see what insurance benefits are available to you, including Medicare or retiree medical coverage. If you haven’t purchased long-term care (LTC) insurance, remember that neither private medical insurance nor Medicare provides long-term care services.
What’s Medicare?
Medicare is a federal health insurance program created for people aged 65 or older, certain younger people with qualifying disabilities, and people with end-stage renal disease (ESRD). It offers different options for health care coverage: Medicare Parts A, B, and D, as well as Medicare Advantage and "Medigap" supplemental insurance plans.
Navigating the Medicare program can be confusing—for just about everyone. Read Senior health care insurance & payment options to learn more about the different Medicare options and what they cover.
Once you select a Medicare plan, it's not forever. You can make changes during the Annual Enrollment period, whether you’re adding or reducing coverage.
Plan for out-of-pocket expenses
Even though Medicare may cover quite a bit, you’ll still need to pay for premiums and some health costs out-of-pocket. Paying for health care and insurance premiums should be part of your larger financial management discussions. It could also help to talk with a Certified Financial Planner (CFP) when figuring out your finances.
If savings aren’t available to pay for health care costs, discussing your needs with family members could be worthwhile, especially if they can and want to assist. Or, if that’s not an option, look into community resources. For example, Administration for Community Living provides links to a range of support services to help you live successfully in your community and Benefits.gov helps you determine if you’re eligible for federal benefits.
Gerontological social workers can also help connect you with financial aid resources and help you fill out paperwork.
Prescription costs
It’s helpful to know prescription costs can vary based on the pharmacy you use. There’re smartphone apps and websites available to help you search pharmacies for the lowest price on your medication—some even include coupons for your specific medication.
Pharmacy membership clubs can also help you save money. Ask your local pharmacy or search online to compare pharmacy savings club options. However, it’s important to note there’s usually a fee for a membership club. You’ll want to make sure the discount on the prescription offsets the monthly or yearly membership fee.
Read How to save money on prescription drugs to learn more.