How much will health care cost in retirement for dental professionals?
What will Medicare cover?
One way to manage part of the costs of your retirement health care is to effectively utilize Medicare, the federal government’s health insurance plan primarily designed for those ages 65 and over. As long as you’ve entered the United States legally and have been here for at least five years, you’re eligible for Medicare. What’s covered under your Medicare plan depends on which of the Medicare “parts” you have. For more information regarding benefits provided by Medicare, visit www.cms.gov.
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Do you need Medigap insurance?
Medicare – Part A, Part B, or both – doesn’t cover the total cost of most medical services or supplies. Given that those out-of-pocket costs could severely affect your lifestyle, you may want to buy a Medigap insurance policy, which is offered by a number of health insurers. As its name implies, Medigap insurance policies are literally designed to help bridge the gap between your retiree health care costs and your Medicare benefits.
One of the best times to buy a Medigap policy is during the open enrollment period, which is generally within the first six months after turning 65, although its definition differs by state. If you apply within open enrollment, there is no medical underwriting, which means you can’t be refused a policy, forced to wait for your coverage, or even charged more because of any health problems.
Although Medigap policies used to cover prescription drugs, no new Medigap policies can cover these costs. You may want to join a Medicare Prescription Drug Plan offered by private companies approved by Medicare.
Will you be prepared for long-term health care needs?
Long-term care expenses are one of the largest unfunded potential liabilities facing today’s retirees and soon-to-be retirees. These types of large expenses could have a significant impact on a retirement portfolio and your ability to create meaningful income for life.
Long-term care insurance could be a potential solution. Consult an insurance agent who specializes in long-term care insurance for complete details prior to purchasing a policy.
Information provided by Mark Lerner and Ryan Rouille, financial representatives with Capstone Financial, a MassMutual Agency, courtesy of Massachusetts Mutual Life Insurance Company (MassMutual).
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