One of the biggest myths in the context of retirement is that all your expenses will magically decrease once your career comes to an end. But if there's one expense that's likely to increase in retirement, it's healthcare.
Of course, healthcare isn't exactly a negotiable expense. If there are medications you need to take to stay healthy, you can't just skip them without consequences. And if you need diagnostic testing that results in a large bill, there's not much to do about it if you don't want to risk your health.
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But that doesn't mean you're doomed to struggle financially in retirement. There are steps you can take to reduce your healthcare spending in retirement. Here are a few to plan on.
1. Assess your Medicare plan choices each year
The Medicare Advantage or Part D drug plan you start out with is not necessarily the plan you have to keep throughout retirement. Each year, Medicare runs an open enrollment period during the fall. And during that time, you can make changes to your coverage that could result in big savings.
Let's say you're prescribed a new medication in retirement. Your copays under your current Part D plan may be hefty. But a new Part D plan could leave you paying less for those pills specifically.
This is just one example, but the point is that it pays to review your plan choices each year. This holds true even if your health needs haven't changed, as you might still discover a more cost-effective option.
2. Take advantage of Medicare's preventive services
Medicare offers a number of preventive services, like certain vaccines and screenings, some of which may be available to you at no cost. It pays to see what preventive care you're entitled to and actually use it.
For example, Medicare has a diabetes prevention program. And if you're eligible, you may pay nothing for it. Participating in a program like this could help prevent diabetes, which could, in turn, save you money on ongoing costs, including insulin.
3. Don't be afraid to ask for self-pay discounts
There are certain services Medicare will not cover, like dental cleanings, eye exams, and hearing aids. (A Medicare Advantage plan may pay for these services, but original Medicare won't.) If you're looking at footing the bill yourself, you shouldn't hesitate to ask your providers if there's a self-pay discount available.
You should also know that in some cases, you may be eligible for a self-pay discount that's lower than what you'll pay as a Medicare enrollee, even if the service itself is covered. It always pays to ask the question to see what options you have.
It's not uncommon to be financially cautious in retirement, especially if you're on a tight budget that largely consists of Social Security. These moves could help you spend less on healthcare during your senior years without forcing yourself to compromise on the medical care you need.
