Medicare Subsidy Discusses 3 Unexpected Expenses That Could Derail Your Retirement – and How You Can Prepare for Them

Planning for retirement is a difficult job, and a single misstep could derail your hard work and sabotage your dreams of a happy post-work life. If you want to disaster-proof your retirement, you need to know which threats are the most serious. In this article, Medicare Subsidy exposes three unexpected expenses you should plan for.

1. Major Medical Expenses

Routine medical expenses are high and are expected to climb even higher. An injury, illness, or significant medical expense from an accident can cost tens or even hundreds of thousands of dollars. Medicare is designed to cover some of these costs, but out-of-pocket costs such as your premium, deductible, and co-pay can be financially devastating. Medicare doesn’t cover every medical expense, and in the case of a major medical event, serious illness, or need for long-term care, additional protection is advisable.

One way to protect against unexpected medical expenses is to purchase Medicare Supplement Insurance. Sometimes called Medigap, Medicare Supplement Insurance is purchased from a private insurance company. It works with your Original Medicare Part A and Part B plans to cover some of the “cost-sharing” expenses not covered by Medicare. These cost-sharing expenses include deductibles, coinsurance, and copayments.

Another popular way to protect against unexpected medical expenses is to purchase a Medicare Advantage Plan instead of Original Medicare Parts A, B, and D. Like Medigap insurance, Medicare Advantage plans are purchased from private insurance companies. Also called Medicare Part C plans, Medicare Advantage plans include an annual out-of-pocket spending maximum, so you are protected from large, unexpected expenses. Also, unlike Medicare Supplements, if you enroll in a Medicare Advantage plan after your initial enrollment period when you turn 65 you cannot be denied or have your premium affected by pre-existing conditions.

Most importantly, there are also great programs like Low-Income Subsidy, Medicare Extra Help Programs, and State Medicare Savings Programs to help cover medical expenses for anyone with low or fixed incomes.

2. Unexpected Prescription Costs

The rising cost of prescription drugs in the United States has become a source of concern for people of all ages. The per-person prescription drug spending in the US exceeds that in all other countries. These rapidly increasing costs are primarily driven by brand-name drug prices that rise at rates far beyond the consumer price index. As we age, our need for prescription medications increases, and unless planned for, these rising costs can put stress on your budget.

The most common way for retirees to protect against rising drug costs is a Medicare drug plan called Part D. Medicare Part D helps pay for prescription drugs. Even if you don’t currently take prescriptions, you should have a Part D plan to protect against the future need you will likely have.

There are two ways to get your Medicare prescription drug coverage. If you use Original Medicare, you can purchase a Part D plan from the government just like your Part A and Part B plans. If you use a Medicare Advantage plan, your Part D prescription drug coverage may already be included. Most, but not all, Advantage plans include prescription drugs, so be sure to check.

3. Large Home Repairs

Things break and wear out. Many retirees plan to stay in the home where they raised their children. It’s full of memories, and their grown children still think of it as home. When living on a limited or fixed income, a major appliance on the fritz or a roof leak can submarine your budget.

Home repair warranty plans are a popular way to protect your budget against unexpected home repair costs. These plans usually require a quarterly or yearly premium and a sizable deductible. They are not designed to cover minor repairs and routine maintenance costs, but many retired homeowners are glad they have them when something substantial goes wrong.

About Medicare Subsidy

Medicare Subsidy is a company that provides resources related to Medicare Advantage, Medicare Supplement, and Prescription Drug plans. The company works to help people 65 and older with low or fixed income save thousands annually from premiums, deductibles, and copayments. Medicare Subsidy makes the process of qualifying for benefits seamless and straightforward for their clients.

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