Written by Stina Antonopoulos

Founder of Roots & Wealth | Retirement Income Planning | Author of What If?

Understanding Medicare Costs: What You Can Expect in Retirement

One of the biggest surprises retirees face is learning that Medicare isn't free.

While Medicare provides valuable health coverage beginning at age 65 for most people, it still comes with premiums, deductibles, copays, and other out-of-pocket costs that should be included in every retirement income plan.

The question isn't simply whether you'll qualify for Medicare.

The question is whether you've planned for what it will cost over the next 20 to 30 years.

Medicare Part A

Part A generally covers:

Hospital stays

Skilled nursing care

Hospice

Limited home health services

Many people pay no monthly premium because they paid Medicare taxes during their working years.

However, hospital deductibles and coinsurance can still apply.

Medicare Part B

Part B helps cover:

Doctor visits

Outpatient care

Lab work

Preventive services

Durable medical equipment

Unlike Part A, Part B typically requires a monthly premium.

That premium may increase if your income exceeds certain thresholds, a surcharge known as IRMAA (Income-Related Monthly Adjustment Amount).

Medicare Part C (Medicare Advantage)

Medicare Advantage plans are offered by private insurance companies approved by Medicare.

These plans often combine:

Hospital coverage

Medical coverage

Prescription drug coverage

Dental

Vision

Hearing benefits

Costs vary by plan, provider network, and location.

The lowest premium isn't always the lowest overall cost, so it's important to compare deductibles, copays, and provider access.

Medicare Part D

Part D helps pay for prescription medications.

Premiums, deductibles, and formularies differ by plan.

Reviewing your prescription coverage annually is important because drug formularies and pricing can change each year.

Medigap (Medicare Supplement Insurance)

Many retirees choose a Medicare Supplement plan to help cover expenses Original Medicare doesn't pay.

These plans may reduce:

Deductibles

Coinsurance

Copayments

Premiums vary based on age, location, and the plan selected.

Healthcare Costs Increase Over Time

Medical inflation has historically outpaced general inflation.

As you age, healthcare often becomes a larger portion of your retirement budget.

Planning only for today's premiums may leave you underprepared for future costs.

Medicare Doesn't Cover Everything

Many retirees are surprised to learn Medicare generally doesn't cover:

Long-term custodial nursing home care

Most dental care

Routine vision care

Hearing aids

Certain overseas medical expenses

Additional planning may be necessary depending on your goals and lifestyle.

Planning Ahead Matters

Retirement income planning should account for more than housing and groceries.

Healthcare is one of the largest expenses many retirees will face.

Understanding Medicare costs today can help reduce financial surprises tomorrow.

How Roots & Wealth Group Can Help

At Roots & Wealth Group, we believe retirement planning starts with understanding your income—not just your investments.

Whether you already have a pension, are considering an annuity, or are looking for ways to create dependable retirement income, we can help you evaluate how different income sources fit into your overall retirement plan.

Our goal is to help you build a retirement strategy that reflects your lifestyle, priorities, and long-term financial goals.