January 30, 2013 in Retirement

What Medicare doesn’t cover

When you’re calculating how much Medicare will cost, consider this information from Medicare.gov about what it doesn’t cover.

If you use one or more of the above services regularly and they are currently covered by your private insurance plan, when you move to Medicare, your costs will increase, and you’ll need to factor that into your retirement planning.

Choosing a Medicare Advantage plan could be part of the solution. Some of these services are covered by some Medicare Advantage plans, but there’s no guarantee. Medicare Advantage plans are all administered by private insurance companies that can and do set their own coverage options and rules.

Allsup Medicare Advisor service warns anyone purchasing a Medicare Advantage plan that appears to cover a frequently used service to read the fine print carefully. The coverage may have significant limitations.

Other options include buying an additional private insurance plan such as dental insurance. Signing up for discount cards also may offer some savings. If you have a very limited budget, Medicaid kicks in for some of these services.

In any case, be sure to factor these costs into your retirement budget with a generous inflation factor. Anyone who believes health care costs are going to decline is dreaming.