September 28, 2022

Medicare and Healthcare Options for Retirement

So, you're approaching retirement age. Congratulations! This is a huge milestone that you've worked hard to reach. And, as you probably know, there are a lot of things you need to consider as you transition into this next phase of your life. One of the most important things on your list should be your healthcare. Thankfully, if you're a U.S. citizen or permanent resident, you have several options when it comes to securing healthcare during retirement, including Medicare. In this blog post, we'll give you a brief overview of what Medicare is and how it can work for you, along with other affordable healthcare options for retirees. Let's take a look.

What is Medicare?

Medicare is a government-sponsored health insurance program that is available to people aged 65 and over, as well as to some younger people with disabilities or end-stage renal disease. The program is administered by the Centers for Medicare and Medicaid Services (CMS), and provides coverage for hospitalization, medical care, and prescription drugs. Medicare plays an important role in helping seniors to access quality health care, and has been shown to improve overall health and extend life expectancy. While Medicare does have some limitations, it remains an essential source of coverage for millions of Americans. If you are eligible for Medicare, you can enroll in one or more of the following parts:

Part A: Hospital Insurance covers inpatient care in a hospital or skilled nursing facility, as well as some home health services and hospice care.

Part B: Medical Insurance covers outpatient care from doctors and other health care providers, as well as preventive services to help you stay healthy.

Part C: Medicare Advantage Plans are offered by private companies that contract with Medicare to provide all your Part A and Part B benefits.

Part D: Prescription Drug Coverage helps pay for the costs of prescription drugs.  

The implications of each part of Medicare differ depending on the person's needs. For example, someone who is healthy may only need hospital insurance, while someone with a chronic illness may need all four parts of Medicare. It is important to research each option carefully to find the best plan for each individual.

What Does Medicare Cover?

Medicare Part A covers inpatient hospital care, skilled nursing facility care, hospice care, and home health care. Part B covers outpatient care, preventive services, and some medical equipment and supplies. Part C is an alternative to Parts A and B that is offered by private insurance companies that contract with Medicare. Part D covers prescription drugs.

So if you're wondering what does it cover, the answer is: a lot! But it's always important to read the fine print of your individual plan to see exactly what's included. And if you have questions, don't hesitate to ask your doctor or contact a Medicare representative.

Medicare Helpline

How Much Does Medicare Cost?

The cost of Medicare depends on which parts you enroll in and whether you have any other source of health insurance coverage. For example, if you only have Part A coverage, you will pay no monthly premium for this coverage; however, if you have Part B coverage, you will pay a monthly premium for this coverage. In addition, there is a deductible for each type of coverage, as well as copayments and coinsurance costs that may apply when receiving care.

What Are My Other Retirement Health Insurance Options?

#1: Private Insurance

There are a few things to think about when you're ready to retire, and private insurance is one of them. The requirements for private insurance are pretty straightforward: you need to be at least 65 years old and have a private insurance policy in place. The implications, however, are a bit more complex. Private insurance can provide you with a lump sum of money that can be used to cover expenses in retirement, but it also comes with some risks. For example, if you live longer than expected or experience unexpected medical costs, your private insurance policy may not cover all of your expenses. As a result, it's important to weigh the pros and cons of private insurance before making a decision about whether or not it's right for you.


One of the biggest decisions facing retirees is what to do about health insurance. For many people, COBRA is the best option. COBRA is a federally-mandated program that allows employees to continue their employer-sponsored health insurance for a limited time after leaving their job. It can be an expensive option, but it's often worth it for the peace of mind it provides. However, there are some things to keep in mind if you're considering COBRA:

  1. You'll only be eligible if you left your job voluntarily or if you were fired for cause.
  2. You'll have to pay the full premium, plus a 2% administrative fee.
  3. COBRA coverage only lasts for 18 months. After that, you'll need to find another option. But if you're healthy and looking for temporary coverage, COBRA can be a good choice.

#3: Health Savings Account

A Health Savings Account (HSA) is a tax-advantaged account that can be used to pay for eligible medical expenses. HSAs are available to people who have high-deductible health plans, and they can be a good way to save money on healthcare costs in retirement.

However, there are some risks associated with HSAs that people should be aware of. For example, if you withdraw money from your HSA for non-medical expenses, you will be subject to taxes and penalties. Additionally, HSAs are not protected from inflation, so the value of your account could decline over time. Despite these risks, HSAs can be a valuable tool for saving for healthcare costs in retirement.

#4: Long-Term Care Insurance

Long-term care insurance is a type of insurance that helps cover the cost of long-term care services, such as nursing home care or in-home care. Long-term care insurance can be expensive, but it can save you thousands of dollars in out-of-pocket costs if you need long-term care services in retirement.

There are a few things to consider before buying long-term care insurance:

  1. You need to think about how likely you are to need long-term care services in retirement. If you're healthy and have a family history of good health, you may not need long-term care insurance. But if you have health concerns or a family history of needing long-term care services, long-term care insurance may be right for you.
  2. Second, you need to weigh the costs and benefits of long-term care insurance. Long-term care insurance can be expensive, but it could save you thousands of dollars in out-of-pocket costs if you need long-term care services in retirement.
  3. Finally, you need to decide how much coverage you want. Some policies will cover the cost of nursing home care, while others will only cover in-home care. You'll need to decide what type of coverage is right for you based on your needs and budget.

Like any type of insurance, there are pros and cons to long-term care insurance. The biggest pro is that it can help cover the cost of long-term care services, which can be very expensive. The biggest con is that it's not right for everyone. If you're healthy and have a family history of good health, you may not need long- term care insurance. You also need to weigh the costs and benefits before deciding if long - term care insurance is right for you.

There are a lot of things to consider when it comes to healthcare in retirement. But don't worry, there are plenty of options available to make sure you're covered. Whether you're looking for private insurance, Medicare, or something else entirely, there's an option out there that's right for you. Talk to your financial advisor or healthcare professional today to find out more about your options and make sure you're prepared for retirement.

Contact Us Today

This page is a publication of Fiat Wealth Management, LLC. The firm is registered as an investment adviser and only conducts business in states where it is properly registered/notice filed or is excluded from registration requirements. Registration is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability.

The information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation.

Explore Fiat University.

Click the below tabs to access our different financial education content, events, and more:

Every Day is Saturday

Our job begins where most advisors stop—saving money is great, but how do you spend it without risk in retirement? Welcome to Every Day is Saturday with Brad Gotto and Matt Stahl, partners and private wealth managers at Fiat Wealth Management.

In this podcast we help guide you to think about your money in a practical sense and make the boring and complex financial decisions, fun, informative and educational. Join us on this journey where Brad and Matt will explore different strategies on how to spend your money without guilt and have peace of mind knowing you are spending it the optimal way in retirement.

You’ve saved money for a lifetime. Now it’s time to spend it.

In Spending Money and Having Fun, Retirement Income Certified Professional Brad Gotto teaches you how to be smart about spending so you can stop worrying and live the life you want. Old habits are hard to break, but Brad helps you embrace the counterintuitive and build new habits to support your next chapter. You’ll learn how to:

  • Change your mindset around spending

  • Create boundaries that buy you freedom

  • Gain peace of mind with concepts that take the guesswork out of your financial requirements