Will Medicare Pay for Health Costs in Retirement? Probably Not!
As you save for retirement, it’s common to imagine all the great things your financial investment will support. Breathtaking trips. Unique hobbies. Even just the freedom to spend each day however you want.
But what about health care? Did you set aside money to cover unexpected expenses? Was that ever part of your retirement dream sequence?
For many people, it’s not. Bank of America’s 2020 Workplace Benefits Report found that only half of employees are saving for future health expenses. And the other half? For 23 percent, it’s not something they even think about, and 26 percent say they expect MediCal, Medicare, or Social Security to cover their health care costs.
Unfortunately, but unsurprisingly, there is a lot of confusion around what those government programs really cover.
What Do Medicare, MediCal, and Social Security Cover?
Social Security is not designated to cover your medical expenses. While it does provide monthly income you can use however you like, for most people, that amount is not enough to cover a chronic condition or major health expense.
MediCal does cover some health costs. But it’s a means-tested program, meaning it’s available primarily to those with low incomes and few assets besides their home. You’ll need to check whether you qualify to have your costs covered through Medi-Cal.
Medicare is a source for health care expenses in your retirement, however it does not offer comprehensive coverage and mainly helps with short-term needs. Plus, it’s broken into multiple parts, so you’ll need to know which coverage you have. Medicare Part A offers hospital insurance, including short term skilled nursing care, hospice care, and some care at-home. Part C covers medical insurance, some doctors’ services, outpatient care, medical supplies, and preventative services. Part D is for prescription drug coverage. It’s important to note that Medicare has a lot of gaps, like vision and dental, hearing aids, assisted living, and long-term care.
While these programs can be helpful, they don’t provide the complete safety net that many seniors are expecting in retirement.
Healthcare: The Hidden Cost of Retirement
Financial planning for retirement often focuses on where you’ll live and what you want to do, not health care. It may be hard to imagine if you’ve had the good fortune of good health, but no one can predict what will happen years down the road. Knowing that you can’t predict exactly what kind of costs you’ll face in the future, and bearing in mind that the cost of health care keeps rising, what kinds of coverage are available for people in retirement?
Life Care at Acacia Creek
Certain licensed continuing-care retirement communities like Acacia Creek offer “Life Care” plans through which you can lock in predictable monthly fees, knowing you’re guaranteed to get the care you need where and when you need it—and often at below-market rates.
As a CCRC, Acacia Creek offers seniors a range of housing and health care services, from independent living to assisted living to 24-hour skilled nursing and memory care. A Life Care plan from Acacia Creek means you will be able to progress through whatever level of care you or your partner need whenever you need it.
Why Choose Life Care at Acacia Creek
- Priority access to the level of care you need
- Lock in health care costs now, not in the future when you need them
- The cost of your health care won’t come at the expense of your legacy or estate
ACACIA CREEK RETIREMENT COMMUNITY inspires residents to live an active, meaningful life. Our mission as a senior community is to enrich the independence, well-being, and security of our residents through exceptional services and care based on Masonic values.
To learn more about Acacia Creek or our senior housing opportunities, contact us at WWW.ACACIACREEK.ORG/CONTACT
