Tips to Reduce Health Care Costs in Retirement
Via Benefits Insurance Services knows that saving money in retirement is important, and the rising cost of health care can make that challenging. We have the tools you need to ensure you're keeping health care costs as low as possible.
Prepare to Shop helps you compare plan costs and benefits, plan networks, and prescription drug coverage. You can also call us at 1-866-322-2824 and speak with a licensed benefit advisor* to find coverage that fits your medical and financial needs. We're here to assist you if you have any questions, and our services are always free.
Medical Plan Costs
If you have Original Medicare Parts A and B, enrolling in additional coverage may help you save money. Original Medicare can have high out-of-pocket costs with no maximum. Enrolling in a plan may help reduce costs in the event hospital or medical services are needed. Plans are available in two categories:
Medicare Advantage plans typically offer medical coverage with a lower monthly premium but higher out-of-pocket costs for hospitals and doctors.
Medicare Supplement Insurance (Medigap) policies typically offer medical coverage with a higher monthly premium and lower out-of-pocket costs for hospitals and doctors.
These plans function very differently from each other. The benefit advisor you speak with during your enrollment call can help determine which option fits your needs.
Reducing Your Medical Costs
Key things to consider:
Do your hospitals and doctors accept Medicare? If not, you may be responsible for the entire bill for their services.
Does your health plan have a network of doctors and hospitals, such as an HMO? If so, make sure to use in-network doctors and hospitals. Otherwise, you may be responsible for the entire cost (except in an emergency).
Do you need dental or vision services? You can typically enroll in dental and vision plans at any time of year. Because of this, you may save money by not enrolling until those services are needed.
Are you a member of an organization like AARP? Some organizations help reduce costs through program discounts. For example, if you're an AARP member, there are various discounts that may benefit you, such as discounts on hearing aids.
Prescription Drug Costs
Understanding Prescription Costs
Whether you already have a Medicare Prescription Drug plan or are selecting a plan, the first step to saving money is understanding how the drug plan works. This helps ensure there aren't any surprise expenses. Prescription coverage, deductibles, copays, and coinsurance vary among plans. Plan costs differ depending on the plan you choose and where you live.
No Medicare drug plan may have a deductible that’s more than $480.00 in 2022. A plan with a deductible doesn't pay anything for your covered prescription drugs until you spend the deductible amount out-of-pocket. Some Medicare drug plans don't have a deductible and pay their portion of costs for your prescriptions right away.
Reducing Your Prescription Costs
Key things to consider:
Does the plan cover your current medications? If so, how much of the medication cost does it cover?
Is your pharmacy both in your health plan’s network and a preferred pharmacy? Most national brands are included, but it’s good to verify which pharmacies give you the preferred rate. The benefit advisor you speak with during your enrollment call can tell you which pharmacies are in network for the health plans you're considering.
Can you take advantage of a mail order pharmacy? A mail order pharmacy may save you even more money and can be more convenient because you typically receive a 90-day supply.
Do you think you might enter the coverage gap (donut hole)? If so, you may want to consider a plan that helps pay for your medications during the coverage gap. If you're interested in these plans, speak with one of our benefit advisors before enrolling.
Read Prescription (Rx) Costs Explained to learn more about prescription drug plan phases, including the coverage gap.
Once you understand how your plan works, you can look for more ways to save money:
If you take a prescription drug that’s on a high tier, with a high copay or coinsurance amount, check with your prescription plan carrier to see if it offers a discount. Also, check directly with the drug manufacturer for manufacturer’s coupons.
Ask your doctor for drug samples. This may be an option if you only need to take the drug for a limited time.
Review your list of prescription drugs with your doctor, and see if you can shorten the list of drugs you take. If possible, replace any brand-name drugs you take with generic drugs or lower-cost brand name drugs.
Financial Assistance
Financial assistance may be available if your income falls below a certain threshold. There are several financial assistance options that may be available for prescription help, such as:
State Health Insurance Assistance Programs (SHIP) (Use the locator tool to find your local SHIP office.)
Call your local Social Security office at 1-800-772-1213 (TTY: 1-800-325-0778) to find out if you qualify for financial assistance.
*Our licensed benefit advisors specialize in health insurance for retirees. They go through annual training and certification to ensure they can help you make an informed and confident decision.
