Medical expenses while on Medicare

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cnc449
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Medical expenses while on Medicare

Post by cnc449 » Sat Aug 04, 2018 1:02 pm

Our financial adviser generated a retirement report and it showed that we should allow $12,233 for medical expenses once we both go on Medicare in roughly 12 years.

Does the $12,233 sound reasonable?

Thanks.

delamer
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Re: Medical expenses while on Medicare

Post by delamer » Sat Aug 04, 2018 1:12 pm

What does that amount include?

Here’s an estimate per person: https://www.forbes.com/sites/johnwasik/ ... c278612e70

Chip
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Re: Medical expenses while on Medicare

Post by Chip » Sat Aug 04, 2018 1:16 pm

It's certainly unreasonable that your advisor gave you a number with five significant figures for something that might happen in 12 years. :D

You might look up current Medicare premiums and Medicare supplement premiums plus deductibles and other out of pocket expenses and inflate them by 5-7% a year. And use 1 or 2 significant figures. Don't forget dental and vision expenses.

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Sheepdog
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Re: Medical expenses while on Medicare

Post by Sheepdog » Sat Aug 04, 2018 1:22 pm

There was this thread a few days ago on expenses in retirement which could help you. viewtopic.php?f=1&t=255410
Just because it isn't your fault doesn't mean it isn't your responsibility....Josh Reid Jones

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munemaker
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Re: Medical expenses while on Medicare

Post by munemaker » Sat Aug 04, 2018 1:22 pm

Chip wrote:
Sat Aug 04, 2018 1:16 pm
It's certainly unreasonable that your advisor gave you a number with five significant figures for something that might happen in 12 years. :D

You might look up current Medicare premiums and Medicare supplement premiums plus deductibles and other out of pocket expenses and inflate them by 5-7% a year. And use 1 or 2 significant figures. Don't forget dental and vision expenses.
I don't think it is unreasonable. He probably added published numbers, inflated them and didn't round. To me, the number of significant figures is not that important in this case.

Chip
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Re: Medical expenses while on Medicare

Post by Chip » Sat Aug 04, 2018 1:31 pm

munemaker wrote:
Sat Aug 04, 2018 1:22 pm
I don't think it is unreasonable. He probably added published numbers, inflated them and didn't round. To me, the number of significant figures is not that important in this case.
I dunno. I think it gives an illusion of false precision which can lead the recipient to assume it's more accurate than it really is. I'd be happier if the adviser had said 15k +/- 10k.

Engineer and former slide rule user here. Those facts may explain my position. :P

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Munir
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Re: Medical expenses while on Medicare

Post by Munir » Sat Aug 04, 2018 1:37 pm

cnc449 wrote:
Sat Aug 04, 2018 1:02 pm
Our financial adviser generated a retirement report and it showed that we should allow $12,233 for medical expenses once we both go on Medicare in roughly 12 years.

Does the $12,233 sound reasonable?

Thanks.
My wife and I are on Medicare and our total medical expenses are $20,000/year now but we live in a retirement community that is a continuing care retirement community (CCRC) .
Last edited by Munir on Sat Aug 04, 2018 1:42 pm, edited 1 time in total.

NotWhoYouThink
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Re: Medical expenses while on Medicare

Post by NotWhoYouThink » Sat Aug 04, 2018 1:39 pm

Chip wrote:
Sat Aug 04, 2018 1:31 pm
munemaker wrote:
Sat Aug 04, 2018 1:22 pm
I don't think it is unreasonable. He probably added published numbers, inflated them and didn't round. To me, the number of significant figures is not that important in this case.
I dunno. I think it gives an illusion of false precision which can lead the recipient to assume it's more accurate than it really is. I'd be happier if the adviser had said 15k +/- 10k.

Engineer and former slide rule user here. Those facts may explain my position. :P
+1

drawpoker
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Re: Medical expenses while on Medicare

Post by drawpoker » Sat Aug 04, 2018 1:40 pm

cnc449 wrote:
Sat Aug 04, 2018 1:02 pm

Does the $12,233 sound reasonable?

Not to me. Seems way too low.

Did he mean $12,233 per person, for each one of you ? That sounds more like it.

Personally, rather than go thru the time and energy to make specific long-range projections about a very narrowly defined area of spending (health care) I think it is more useful to use Fidelity's oft-quoted tool - "A married couple needs a minimum of $1.2 mil in assets if starting retirement at age 65" (Predicated on one of the 2 will live to age 95 but not both)

Maybe your advisor is just using this and has tweaked it for the future (???)

https://www.fidelity.com/about-fidelity ... ted-280000

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dm200
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Re: Medical expenses while on Medicare

Post by dm200 » Sat Aug 04, 2018 4:00 pm

cnc449 wrote:
Sat Aug 04, 2018 1:02 pm
Our financial adviser generated a retirement report and it showed that we should allow $12,233 for medical expenses once we both go on Medicare in roughly 12 years.
Does the $12,233 sound reasonable?
Thanks.
Are you counting the medicare part B premiums in this figure? Ours, for example, is $134 x 24 ($3,216)for the two of us - and that will go up in coming years. Who knows how much? If income is higher - them Part B may be more.

If you pick a Medicare Advantage plan - you will have modest monthly premiums - but may have out of pocket expenses in a "bad" year. We each pay $30/month - with max out of pocket of $6,000. Both will go up (who knows how much).

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dm200
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Re: Medical expenses while on Medicare

Post by dm200 » Sat Aug 04, 2018 4:03 pm


invst65
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Re: Medical expenses while on Medicare

Post by invst65 » Sat Aug 04, 2018 4:15 pm

cnc449 wrote:
Sat Aug 04, 2018 1:02 pm
Our financial adviser generated a retirement report and it showed that we should allow $12,233 for medical expenses once we both go on Medicare in roughly 12 years.

Does the $12,233 sound reasonable?

Thanks.
I have never spent anything close to that much EVER in my life - nor have I had insurance claims anywhere close.

I will be 70 in 10 months.

dogtown
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Re: Medical expenses while on Medicare

Post by dogtown » Sat Aug 04, 2018 4:27 pm

$12,233 sounds high

My wife and I are 69 and 73 years old and use a Medicare Advantage Plan.

I just calculated our projected costs for this year and they will be under $4000 for both of us including Part B.

We pay $0 for monthly premiums.

WillRetire
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Re: Medical expenses while on Medicare

Post by WillRetire » Sat Aug 04, 2018 4:39 pm

cnc449 wrote:
Sat Aug 04, 2018 1:02 pm
Our financial adviser generated a retirement report and it showed that we should allow $12,233 for medical expenses once we both go on Medicare in roughly 12 years.

Does the $12,233 sound reasonable?

Thanks.
The number is a little high in *today's dollars, but not unreasonable if you factor in: prescription drug expenses, vision, dental, and premiums for supplemental insurance (e.g. medigap). Who knows what medical issues you or your spouse may have in 12 years and beyond. And not all costs are covered by medicare, e.g. hearing aids and other durable medical equipment.

(*)First, understand if your advisor, or his planning tool, used future dollars or today's dollars when quoting $12K per person. 2018 vs 2030 makes a big difference inflation-wise.

drawpoker
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Re: Medical expenses while on Medicare

Post by drawpoker » Sat Aug 04, 2018 5:21 pm

dm200 wrote:
Sat Aug 04, 2018 4:00 pm

Are you counting the medicare part B premiums in this figure? ......and that will go up in coming years. Who knows how much?.....
You could start with what the trustees projected in the last report. ....."Part B premiums expected to rise by about 5% per year until 2026..."

(Interestingly, the Year 2026 is also the year they now project the HI trust fund will run out of money.)

IF you want to go by what the gumbmint says, starting with the present standard $134 rate for Part B this year, in the year 2026 that would make it around $196 a month, $2,352 a year, per person.

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celia
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Re: Medical expenses while on Medicare

Post by celia » Sat Aug 04, 2018 5:36 pm

invst65 wrote:
Sat Aug 04, 2018 4:15 pm
cnc449 wrote:
Sat Aug 04, 2018 1:02 pm
Our financial adviser generated a retirement report and it showed that we should allow $12,233 for medical expenses once we both go on Medicare in roughly 12 years.

Does the $12,233 sound reasonable?
I have never spent anything close to that much EVER in my life - nor have I had insurance claims anywhere close.

I will be 70 in 10 months.
Age-wise, we're in the ballpark with invst65, but we spend MORE than that, including the premiums.

I think it is safe to say, very few people will spend $12,233 per year, but almost half will spend more and almost half will spend less.

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dm200
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Re: Medical expenses while on Medicare

Post by dm200 » Sun Aug 05, 2018 9:38 am

Maybe I missed it, but does this include or exclude the Medicare premiums (Parts B and D) and either Meedigap or Advantage premiums. BIG difference.

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BolderBoy
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Re: Medical expenses while on Medicare

Post by BolderBoy » Sun Aug 05, 2018 10:05 am

dogtown wrote:
Sat Aug 04, 2018 4:27 pm
My wife and I are 69 and 73 years old and use a Medicare Advantage Plan.

We pay $0 for monthly premiums.
I have a Medicare Advantage Plan. How do you pay -0- premiums?
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect

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dm200
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Re: Medical expenses while on Medicare

Post by dm200 » Sun Aug 05, 2018 10:26 am

BolderBoy wrote:
Sun Aug 05, 2018 10:05 am
dogtown wrote:
Sat Aug 04, 2018 4:27 pm
My wife and I are 69 and 73 years old and use a Medicare Advantage Plan.
We pay $0 for monthly premiums.
I have a Medicare Advantage Plan. How do you pay -0- premiums?
My Kaiser Medicare plan has $30 per month premiums. A few years ago, the monthly premium was ZERO. There are still a few MA plans in some areas with zero premiums.

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dm200
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Re: Medical expenses while on Medicare

Post by dm200 » Sun Aug 05, 2018 10:29 am

dogtown wrote:
Sat Aug 04, 2018 4:27 pm
$12,233 sounds high
My wife and I are 69 and 73 years old and use a Medicare Advantage Plan.
I just calculated our projected costs for this year and they will be under $4000 for both of us including Part B.
We pay $0 for monthly premiums.
Just be aware that with most MA plans, the maximum out of pocket can be much higher - of you encounter very large medical situations. On out plan, the max out of pocket is $6,000.

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Munir
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Re: Medical expenses while on Medicare

Post by Munir » Sun Aug 05, 2018 10:44 am

cnc449 wrote:
Sat Aug 04, 2018 1:02 pm
Our financial adviser generated a retirement report and it showed that we should allow $12,233 for medical expenses once we both go on Medicare in roughly 12 years.

Does the $12,233 sound reasonable?

Thanks.
Is the $12,233 per individual or per couple?

Does it include Medicare, Medicare Advantage, Medigap, Drugs & drug plans, other medical insurance, and out of pocket medical expenses?
Last edited by Munir on Sun Aug 05, 2018 4:00 pm, edited 1 time in total.

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dm200
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Re: Medical expenses while on Medicare

Post by dm200 » Sun Aug 05, 2018 10:51 am

Since there can be (depending on locality, plans, etc.) considerable savings on a Medicare Advantage plan vs Original medicare and Supplement - I think it makes sense to fully investigate MA plans in your locality beginning 1-2 years before medicare eligibility. If the network of providers is an issue, it might even make sense to transition to such providers in the years before Medicare.

UpperNwGuy
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Re: Medical expenses while on Medicare

Post by UpperNwGuy » Sun Aug 05, 2018 10:55 am

invst65 wrote:
Sat Aug 04, 2018 4:15 pm
cnc449 wrote:
Sat Aug 04, 2018 1:02 pm
Our financial adviser generated a retirement report and it showed that we should allow $12,233 for medical expenses once we both go on Medicare in roughly 12 years.

Does the $12,233 sound reasonable?

Thanks.
I have never spent anything close to that much EVER in my life - nor have I had insurance claims anywhere close.

I will be 70 in 10 months.
I agree. I am retired and in good health. My medical expenses (including Medicare and other insurance premiums) are less than half that.

drawpoker
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Re: Medical expenses while on Medicare

Post by drawpoker » Sun Aug 05, 2018 1:13 pm

dm200 wrote:
Sun Aug 05, 2018 10:51 am
....... I think it makes sense to fully investigate MA plans in your locality beginning 1-2 years before medicare eligibility. If the network of providers is an issue, it might even make sense to transition to such providers in the years before Medicare.
Why? Don't all MA plans guarantee new enrollees a place? Assigned a PCP? Or can a MA in a big metro area take new sign-ups until they declare, sorry, we are full up and can't take anyone else? Not knowing anyone who is in an MA plan I am somewhat unfamiliar with some of the fine points.

But, on the surface, I would re-think this suggestion of transitioning early.

If you give up your old doctor to "try" the ones in the MA 2 years early, you might find the MA has decided to pull up stakes (like the Johns Hopkins one here ) Or gone into bankruptcy (like the big one in Florida) when you are eligible to join Medicare.
Or, their network has changed (they can legally do that once a year) and the doctors/hospitals you would like have been dropped from the network. Then you are stuck trying to find a PCP who is taking new patients on Medicare.

In some areas that have a significant shortage of PCPs this is becoming a huge problem.

If seriously looking at various MA plans to hold down costs, I think it might make more sense to wait until you have all the ducks, in all of the rows, all facing forward, first.

Of course, to be completely clear, the law does allow that one year "trial" period of a MA. So not all is lost if it doesn't work out. The beneficiary can use guaranteed issue to ditch his MA, go on Original Medicare, buy his Medigap policy at open enrollment rates, etc.

But - that still could leave a problem if he wants to go back to his original doctor and the panel has closed.

orlandoman
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Re: Medical expenses while on Medicare

Post by orlandoman » Sun Aug 05, 2018 1:23 pm

BolderBoy wrote:
Sun Aug 05, 2018 10:05 am
dogtown wrote:
Sat Aug 04, 2018 4:27 pm
My wife and I are 69 and 73 years old and use a Medicare Advantage Plan.

We pay $0 for monthly premiums.
I have a Medicare Advantage Plan. How do you pay -0- premiums?
It's all about location & MA plan type, HMO or PPO.

I live in Central Florida & pay $0.00 monthly premium for a United Healthcare PPO MA plan, Humana also has a $0 premium PPO MA plan They both have higher out of pocket maximum's than their HMO MA plans. BC/BS also has a PPO MA plan that's $30-40 a month. Central FL is a very large, competitive market with lots of hospitals & healthcare providers.
"Don't Believe Everything You Think"

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dm200
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Re: Medical expenses while on Medicare

Post by dm200 » Sun Aug 05, 2018 3:07 pm

drawpoker wrote:
Sun Aug 05, 2018 1:13 pm
dm200 wrote:
Sun Aug 05, 2018 10:51 am
....... I think it makes sense to fully investigate MA plans in your locality beginning 1-2 years before medicare eligibility. If the network of providers is an issue, it might even make sense to transition to such providers in the years before Medicare.
Why? Don't all MA plans guarantee new enrollees a place? Assigned a PCP? Or can a MA in a big metro area take new sign-ups until they declare, sorry, we are full up and can't take anyone else? Not knowing anyone who is in an MA plan I am somewhat unfamiliar with some of the fine points.
But, on the surface, I would re-think this suggestion of transitioning early.
If you give up your old doctor to "try" the ones in the MA 2 years early, you might find the MA has decided to pull up stakes (like the Johns Hopkins one here ) Or gone into bankruptcy (like the big one in Florida) when you are eligible to join Medicare.
Or, their network has changed (they can legally do that once a year) and the doctors/hospitals you would like have been dropped from the network. Then you are stuck trying to find a PCP who is taking new patients on Medicare.
In some areas that have a significant shortage of PCPs this is becoming a huge problem.
If seriously looking at various MA plans to hold down costs, I think it might make more sense to wait until you have all the ducks, in all of the rows, all facing forward, first.
Of course, to be completely clear, the law does allow that one year "trial" period of a MA. So not all is lost if it doesn't work out. The beneficiary can use guaranteed issue to ditch his MA, go on Original Medicare, buy his Medigap policy at open enrollment rates, etc.
But - that still could leave a problem if he wants to go back to his original doctor and the panel has closed.
It all depends, in my opinion. For one example,

if you need to fine a new PCP anyway - maybe select a new one who is part of a MA network

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dm200
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Re: Medical expenses while on Medicare

Post by dm200 » Sun Aug 05, 2018 3:08 pm

orlandoman wrote:
Sun Aug 05, 2018 1:23 pm
BolderBoy wrote:
Sun Aug 05, 2018 10:05 am
dogtown wrote:
Sat Aug 04, 2018 4:27 pm
My wife and I are 69 and 73 years old and use a Medicare Advantage Plan.
We pay $0 for monthly premiums.
I have a Medicare Advantage Plan. How do you pay -0- premiums?
It's all about location & MA plan type, HMO or PPO.
I live in Central Florida & pay $0.00 monthly premium for a United Healthcare PPO MA plan, Humana also has a $0 premium PPO MA plan They both have higher out of pocket maximum's than their HMO MA plans. BC/BS also has a PPO MA plan that's $30-40 a month. Central FL is a very large, competitive market with lots of hospitals & healthcare providers.
Yes - still quite a few MA plans with zero monthly premiums.

drawpoker
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Re: Medical expenses while on Medicare

Post by drawpoker » Sun Aug 05, 2018 3:17 pm

BolderBoy wrote:
Sun Aug 05, 2018 10:05 am
We pay $0 for monthly premiums.
I have a Medicare Advantage Plan. How do you pay -0- premiums?
[/quote]
dogtown wrote: ↑

Be careful what you wish for. Remember the old maxim.
You Get What You Pay For

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dm200
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Re: Medical expenses while on Medicare

Post by dm200 » Sun Aug 05, 2018 3:38 pm

drawpoker wrote:
Sun Aug 05, 2018 3:17 pm
BolderBoy wrote:
Sun Aug 05, 2018 10:05 am
We pay $0 for monthly premiums.
I have a Medicare Advantage Plan. How do you pay -0- premiums?
dogtown wrote: ↑
Be careful what you wish for. Remember the old maxim.
You Get What You Pay For

[/quote]

Not always true.

Many examples. My opinion is that health/medical care category of such cases. I am absolutely convinced that my Kaiser medicare plan provides excellent (perhaps outstanding) quality.

drawpoker
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Re: Medical expenses while on Medicare

Post by drawpoker » Sun Aug 05, 2018 3:52 pm

Am not disagreeing with that. Your Kaiser Wash DC plan did get 4.5 star rating, very high.

But - point is - Your Kaiser is not one of the -0- premium plans that folks here were asking about.

That is what I meant about you get what you pay for.

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dm200
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Re: Medical expenses while on Medicare

Post by dm200 » Sun Aug 05, 2018 3:54 pm

drawpoker wrote:
Sun Aug 05, 2018 3:52 pm
Am not disagreeing with that. Your Kaiser Wash DC plan did get 4.5 star rating, very high.
But - point is - Your Kaiser is not one of the -0- premium plans that folks here were asking about.
That is what I meant about you get what you pay for.
At only $30 per month - not zero BUT a very low amount for premiums. A few years ago, the premiums were zero - and that includes prescription drugs.

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cnc449
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Re: Medical expenses while on Medicare

Post by cnc449 » Mon Aug 06, 2018 8:27 am

Munir wrote:
Sun Aug 05, 2018 10:44 am
cnc449 wrote:
Sat Aug 04, 2018 1:02 pm
Our financial adviser generated a retirement report and it showed that we should allow $12,233 for medical expenses once we both go on Medicare in roughly 12 years.

Does the $12,233 sound reasonable?

Thanks.
Is the $12,233 per individual or per couple?

Does it include Medicare, Medicare Advantage, Medigap, Drugs & drug plans, other medical insurance, and out of pocket medical expenses?
The $12,233 is per couple. He said it was for healthcare, but he did not itemize it.

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cnc449
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Re: Medical expenses while on Medicare

Post by cnc449 » Mon Aug 06, 2018 8:29 am

Munir wrote:
Sat Aug 04, 2018 1:37 pm
cnc449 wrote:
Sat Aug 04, 2018 1:02 pm
Our financial adviser generated a retirement report and it showed that we should allow $12,233 for medical expenses once we both go on Medicare in roughly 12 years.

Does the $12,233 sound reasonable?

Thanks.
My wife and I are on Medicare and our total medical expenses are $20,000/year now but we live in a retirement community that is a continuing care retirement community (CCRC) .
Does the CCRC get a portion of the $20,000/year?

jebmke
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Re: Medical expenses while on Medicare

Post by jebmke » Mon Aug 06, 2018 8:42 am

cnc449 wrote:
Mon Aug 06, 2018 8:27 am
The $12,233 is per couple. He said it was for healthcare, but he did not itemize it.
$12K is about where I think we are once spouse signs up for Medicare. But this is for baseline coverage+supplemental and allowing a little for routine dental work (cleaning/x-ray).

Once you get into major dental work, eye care (progressive lenses, cataract surgery ....), hearing aids or any long term care, you'd have to add that to your estimate IMO? I have to admit that I don't know what the out-of-pocket exposure is on drugs. I signed up for the cheapest drug plan I could find since I don't use them. There could be some risk there for us if things were to change.

Hint: take care of your teeth. Major dental work can be expensive (think thousands, not hundreds of dollars).
When you discover that you are riding a dead horse, the best strategy is to dismount.

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Munir
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Re: Medical expenses while on Medicare

Post by Munir » Mon Aug 06, 2018 9:48 am

cnc449 wrote:
Mon Aug 06, 2018 8:29 am
Munir wrote:
Sat Aug 04, 2018 1:37 pm
cnc449 wrote:
Sat Aug 04, 2018 1:02 pm
Our financial adviser generated a retirement report and it showed that we should allow $12,233 for medical expenses once we both go on Medicare in roughly 12 years.

Does the $12,233 sound reasonable?

Thanks.
My wife and I are on Medicare and our total medical expenses are $20,000/year now but we live in a retirement community that is a continuing care retirement community (CCRC) .
Does the CCRC get a portion of the $20,000/year?
Yes. A portion of what we pay the CCRC is considered medical care- about 30%.
I also think that part of the Medicare fees is withheld from the monthly social security income. I wonder if people are including that. It's possible that occurs only with traditional Medicare and not the Advantage plans but I'm not sure.
The $20,000 per couple is what we deduct on our taxes as medical expense so it includes all the above.

btenny
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Re: Medical expenses while on Medicare

Post by btenny » Mon Aug 06, 2018 10:12 am

I spend about $7k for two for everything Including insurance, medicare, deductables, drugs, glasses, and dental. Even with Max out of pocket we will not spend $10k. Both of us are in our 70s so this is 6 years of history. Maybe it will go up a llittle in the future due to inflation.

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dm200
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Re: Medical expenses while on Medicare

Post by dm200 » Mon Aug 06, 2018 10:18 am

jebmke wrote:
Mon Aug 06, 2018 8:42 am
cnc449 wrote:
Mon Aug 06, 2018 8:27 am
The $12,233 is per couple. He said it was for healthcare, but he did not itemize it.
$12K is about where I think we are once spouse signs up for Medicare. But this is for baseline coverage+supplemental and allowing a little for routine dental work (cleaning/x-ray).
Once you get into major dental work, eye care (progressive lenses, cataract surgery ....), hearing aids or any long term care, you'd have to add that to your estimate IMO? I have to admit that I don't know what the out-of-pocket exposure is on drugs. I signed up for the cheapest drug plan I could find since I don't use them. There could be some risk there for us if things were to change.
Hint: take care of your teeth. Major dental work can be expensive (think thousands, not hundreds of dollars).
Cataract surgery is covered by Medicare.

jebmke
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Re: Medical expenses while on Medicare

Post by jebmke » Mon Aug 06, 2018 10:19 am

dm200 wrote:
Mon Aug 06, 2018 10:18 am
jebmke wrote:
Mon Aug 06, 2018 8:42 am
cnc449 wrote:
Mon Aug 06, 2018 8:27 am
The $12,233 is per couple. He said it was for healthcare, but he did not itemize it.
$12K is about where I think we are once spouse signs up for Medicare. But this is for baseline coverage+supplemental and allowing a little for routine dental work (cleaning/x-ray).
Once you get into major dental work, eye care (progressive lenses, cataract surgery ....), hearing aids or any long term care, you'd have to add that to your estimate IMO? I have to admit that I don't know what the out-of-pocket exposure is on drugs. I signed up for the cheapest drug plan I could find since I don't use them. There could be some risk there for us if things were to change.
Hint: take care of your teeth. Major dental work can be expensive (think thousands, not hundreds of dollars).
Cataract surgery is covered by Medicare.
Only the barest of bones. If you need and want special lenses, laser surgery you pay up.
When you discover that you are riding a dead horse, the best strategy is to dismount.

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dm200
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Re: Medical expenses while on Medicare

Post by dm200 » Mon Aug 06, 2018 10:23 am

jebmke wrote:
Mon Aug 06, 2018 10:19 am
dm200 wrote:
Mon Aug 06, 2018 10:18 am
jebmke wrote:
Mon Aug 06, 2018 8:42 am
cnc449 wrote:
Mon Aug 06, 2018 8:27 am
The $12,233 is per couple. He said it was for healthcare, but he did not itemize it.
$12K is about where I think we are once spouse signs up for Medicare. But this is for baseline coverage+supplemental and allowing a little for routine dental work (cleaning/x-ray).
Once you get into major dental work, eye care (progressive lenses, cataract surgery ....), hearing aids or any long term care, you'd have to add that to your estimate IMO? I have to admit that I don't know what the out-of-pocket exposure is on drugs. I signed up for the cheapest drug plan I could find since I don't use them. There could be some risk there for us if things were to change.
Hint: take care of your teeth. Major dental work can be expensive (think thousands, not hundreds of dollars).
Cataract surgery is covered by Medicare.
Only the barest of bones. If you need and want special lenses, laser surgery you pay up.
True - but my understanding is that, for most folks, the basic works just fine. I would be interested in hearing some actual experiences - since I will eventually be facing this surgery.

schachtw
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Re: Medical expenses while on Medicare

Post by schachtw » Mon Aug 06, 2018 10:25 am

cnc449 wrote:
Sat Aug 04, 2018 1:02 pm
Our financial adviser generated a retirement report and it showed that we should allow $12,233 for medical expenses once we both go on Medicare in roughly 12 years.

Does the $12,233 sound reasonable?

Thanks.
Based on the medical budget that my wife and I have, it seems totally reasonable.

We are both on Medicare, and our monthly expense budget is:
Part B - 268
Part D - 49
Supplemental: Plan G (67 yrs old) - 302
Dental - 150
Drugs - 250

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OAG
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Re: Medical expenses while on Medicare

Post by OAG » Mon Aug 06, 2018 10:30 am

Depending on projected income that number could be accurate if not pretty low. Premiums for Medicare alone could reach over 3K EACH right now (income dependent) and that does NOT include Part D or any Supplemental to pick up the 20% Medicare does not pay. Also have to consider any Deductibles or COPAYS. Nor does it include Dental expenses.
OAG=Old Army Guy. Retired CW4 USA (US Army) in 1979 21 years of service @ 38.

jebmke
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Re: Medical expenses while on Medicare

Post by jebmke » Mon Aug 06, 2018 10:39 am

dm200 wrote:
Mon Aug 06, 2018 10:23 am
True - but my understanding is that, for most folks, the basic works just fine. I would be interested in hearing some actual experiences - since I will eventually be facing this surgery.
That may be true but I depend on my eyes for every thing I do. Basic wasn't going to cut it for me. I don't recall the exact numbers but I think my uninsured cost was about $2K per eye.
When you discover that you are riding a dead horse, the best strategy is to dismount.

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dm200
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Re: Medical expenses while on Medicare

Post by dm200 » Mon Aug 06, 2018 10:46 am

jebmke wrote:
Mon Aug 06, 2018 10:39 am
dm200 wrote:
Mon Aug 06, 2018 10:23 am
True - but my understanding is that, for most folks, the basic works just fine. I would be interested in hearing some actual experiences - since I will eventually be facing this surgery.
That may be true but I depend on my eyes for every thing I do. Basic wasn't going to cut it for me. I don't recall the exact numbers but I think my uninsured cost was about $2K per eye.
A friend of mine just had it done. I believe the basic version on Medicare. He is ecstatic - had worn glasses for 60 years - no glasses now.

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munemaker
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Re: Medical expenses while on Medicare

Post by munemaker » Mon Aug 06, 2018 8:16 pm

Chip wrote:
Sat Aug 04, 2018 1:31 pm
Engineer and former slide rule user here.
Me too.

I think everyone understands this cannot be a precise number because it depends on your health situation.

jimmieg
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Re: Medical expenses while on Medicare

Post by jimmieg » Tue Aug 07, 2018 12:54 am

drawpoker wrote:
Sun Aug 05, 2018 3:17 pm
BolderBoy wrote:
Sun Aug 05, 2018 10:05 am
We pay $0 for monthly premiums.
I have a Medicare Advantage Plan. How do you pay -0- premiums?
dogtown wrote: ↑

Be careful what you wish for. Remember the old maxim.
You Get What You Pay For

[/quote]
We have a $0 premium UHC Medicare Advantage plan in Los Angeles, including $0 office, urgent care and specialist visits and $0 hospital admissions. In addition, our large HMO referred both my wife and me to either UCLA or USC (both world-class hospitals)when we had particular specialty needs at no additional cost
We are definitely getting more than we pay for.

drawpoker
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Re: Medical expenses while on Medicare

Post by drawpoker » Tue Aug 07, 2018 1:23 am

Terrific.

But your Calif UHC plan did not make the list of Best MA Plans from US News & Reports. Five other insurers were listed instead.

https://health.usnews.com/health-news/b ... tage-plans

Interestly, UHC is conspicuously absent from the list of all 50 states except for Michigan

HIinvestor
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Re: Medical expenses while on Medicare

Post by HIinvestor » Tue Aug 07, 2018 1:33 am

My relative is a retired state employee. His retirement includes lifetime fully paid insurance and Medicare premiums for both him and spouse. His out of pocket costs have been pretty minimal since between his insurance and Medicare A&B, pretty much everything is covered for both him and spouse, including recent hospitalizations, tho there are some Rx copays. They are in late 80s, early 90s and pretty healthy.

Agree that much depends on your general health and any MA or MediGap plans you have. Obviously folks with chronic conditions that require more attention and Rx may have higher charges.

Chip
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Re: Medical expenses while on Medicare

Post by Chip » Tue Aug 07, 2018 5:00 am

munemaker wrote:
Mon Aug 06, 2018 8:16 pm
I think everyone understands this cannot be a precise number because it depends on your health situation.
Maybe. :) I'm rather startled by the innumeracy I see around me every single day. The concept of significant figures seems to be lost on many. Ditto for GIGO.

It's not just imprecise because of individual health situations. The 12 years in the future sort of taints the number as well.

Small Law Survivor
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Re: Medical expenses while on Medicare

Post by Small Law Survivor » Tue Aug 07, 2018 10:39 am

I'm 67, wife 65. I'm not on Medicare yet, still covered by employers HSA, but when I researched this last year $12,000/year, roughly speaking, was the number I came up with.
68 yrs, semi-retired lawyer, 50/40/10 s/b/c, 70/30 dom/int'l. Plan: 4% WR until age 70, 3% after social security kicks in. Boglehead since day 1 (and M* Diehard before that) under various other names

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