Medical Costs

7 ways to control medical costs

    Going into retirement fully informed about health care costs and other expenses will help you avoid surprises. Ultimately, you want to be able to protect your lifestyle and avoid being forced back into the workplace just to stay afloat.
    Here are seven ways you can better control medical costs:
    1. Budget. Create a target retirement savings goal that factors in your planned level of expenses and life expectancy. This should include entertainment expenses, travel costs to see family members, etc.
    2. Medical savings. Consider creating a separate savings account. Rather than just saving for retirement in general, individuals could use a Health Savings Account (HSA) or designate a portion of their retirement account to be dedicated to health care costs.
    3. Medicare. Be sure you understand what Medicare will cover and what it won't. For instance, the majority of people over age 65 will likely need long-term care at some point in their lives. Create a plan to pay for such care, keeping in mind that Medicare generally does not cover such costs.
    4. Insurance. Investigate the cost of supplemental health insurance, which reimburses individuals over age 65 for some or all of the costs not covered by Medicare.
    Medicare.gov as well as many state Web sites list the supplemental health plans available, including those for Medicare Part D.
    5. Phased retirement. It may be necessary to work longer. The additional earnings that come from gradually entering retirement, first with part-time work, can help ensure savings aren't tapped too soon for health care needs.
    6. Preventive care. Staying on top of routine doctor-recommended screenings for diseases such as colon cancer, can help control costs.
    7. Health claims. Mistakes can happen in the claims payment process. Take the time to review medical bills and follow up with the doctors office when questions arise.