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As older adults get closer to retirement, they often begin to educate themselves about Medicare. Those unfamiliar with the benefit sometimes think Medicare will pay for all their healthcare expenses once they are enrolled. The reality is, Medicare doesn’t cover all healthcare costs.
A senior can find themselves with significant expenses following a hospital stay or lengthy illness. Learning what expenses aren’t covered and how to protect your finances is important.
Understanding Medicare Coverage
Research shows that over their lifetime, a retiree will incur an average of $122,000 out-of-pocket for medical expenses Medicare doesn’t cover. For older adults who have a chronic disease or a prolonged illness, the costs can be even higher.
For a senior on a tight budget, those expenses can be catastrophic.
That’s why it’s vital for older adults to understand what expenses aren’t covered by Medicare and make sure their retirement plans address them.
Some of most common healthcare expenses not covered by Medicare Parts A and B include:
Proactively planning for these types of needs can help prevent your retirement savings from being gobbled up by healthcare costs.
How to Protect Retirement Savings from Medical Expenses
One final tip is to carefully review any healthcare bills you receive. This is a good practice for older adults to follow before and after retiring. Billing errors happen and can quickly add up. Also review medical bills to make sure each one has been submitted to both your primary and secondary insurances for payment.
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