As you can see in the above chart, your overall health makes a huge difference on your annual cost. A Kaiser Foundation study calculated that the average Medicare beneficiary in poor health will have costs that are about 2.5 times as high as those in excellent health.
For an overview of what the different “parts” of Medicare are, see our video.
Even for a healthy person, the average cost for prescription drugs is still a big chunk of the cost. People enrolled in a stand-alone drug plan through Medicare Part D will have varying monthly costs, because those plans are administered through private insurance companies. Different drug plans cover certain prescriptions better than others, so it is important to shop around. Here is a chart that shows the breakdown of the average monthly cost for a person on Medicare in excellent health:
Medicare Advantage Plans (Part C) are also administered by private insurance companies, and have a wide range of coverage options and premiums. Typically, a low cost plan will have high out-of-pocket costs and a low monthly premium. More expensive plans may cover virtually every copay and deductible.
For an overview of how Medicare Advantage Plans work, see our video.
Sometimes, using a discount prescription card or coupon INSTEAD of your insurance provides a better discounts. Here is a video example of a prescription discount card and how it works.
These costs are a huge burden to seniors who only receive Social Security Benefits. In 2016, the average montly benefit for retired workers and their dependents was $1,348 – so the average medical cost for a healthy person is nearly half of the average Social Security Benefit!
It is easy to be discouraged in the face of the rising health care costs after retirement. Let us ease your burden a little. Follow Medicare World on Facebook for news, tips and deals for Medicare recipients.
The new Medicare Plus Card saves you up to 75% on things not covered by Medicare
Medicare doesn’t cover everything. Luckily, those on Medicare can now start saving on out of pocket expenses like prescription drugs, dental, vision, hearing, and more. Over 1 million people have already received their free Medicare Plus Card.