3 Major Problems With Medicare Every Retiree Should Know About

Group 1 - Medicare Part A generally does not charge a premium, but Medicare Part B, which covers outpatient care, does charge a monthly premium that can increase annually. Additionally, there may be premiums for Part D drug plans and Medicare Advantage plans, which should be included in retirement budgeting [4] - Original Medicare does not have an annual out-of-pocket maximum, meaning serious illnesses or extended hospital stays could result in significant medical bills. To mitigate this risk, individuals can increase retirement savings or purchase a Medigap plan to help cover out-of-pocket costs [5][6] - Medicare does not cover certain essential services, including dental care, eye exams, hearing aids, and long-term care. Individuals needing home health aides or assisted living will incur these costs independently [8]