Many people assume that once they retire, their living costs will drop substantially. Now some of the bills you face during your working years might shrink once retirement begins. You won't have to keep paying to commute to a job, for example, if you don't have a job. And if you manage to pay off your home before leaving the workforce, you won't have a mortgage to contend with.
But one expense that might increase on you during retirement is healthcare. And even with a decent-sized nest egg and Social Security benefits, you might struggle to keep up with your costs once you start getting coverage through Medicare.
It's actually a big misconception that healthcare under Medicare is cheap and affordable. In many cases, it's the opposite, especially when you account for your various premium costs, copays, and other out-of-pocket expenses. If you're having a hard time managing your Medicare expenses, here are some steps to take.
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1. Research your plan options at your next opportunity
At this point, it's generally too late to change your Medicare coverage for the year. But that doesn't mean you're stuck with your current plan forever. This fall, during open enrollment, you'll have the opportunity to review different Medicare plan choices and make changes to your coverage to see if that results in lower costs. You might, for example, save a fair amount of money by switching from one Part D drug plan to another.
2. Make sure you're staying in-network if you have a Medicare Advantage plan
If you're enrolled in original Medicare, you'll generally have access to a wide range of providers. But if you're enrolled in a Medicare Advantage plan, your network of approved providers may be more limited. Still, it's important that you do what you can to stay in-network in the course of seeking care. Doing so could shave lots of money off of your healthcare costs.
3. Ask your doctor for generic prescriptions
Many prescriptions these days are available in generic form. It pays to talk to your doctor about moving to generics if the cost of your medications has gotten prohibitive.
4. Make certain you're getting your free preventive care
Medicare enrollees are entitled to certain types of no-cost preventive care each year, such as an annual physical. It's a good idea to sign up for that care, because in the course of receiving it, you might manage to address issues that you'd otherwise have to pay to have treated. Similarly, if a free preventive screening test uncovers an issue you're able to treat early on, it might spare you the cost of more extensive (and expensive) treatment for that same problem in a more advanced stage.
Unfortunately, many seniors on Medicare end up having a difficult time keeping up with healthcare expenses. If your medical bills have become burdensome, it pays to take these steps. But also, do your part to take care of your health as much as you can. You never know what expenses that might spare you from incurring.
