Managing Medications on Medicare

You already know that health care is one of your largest expenses during retirement. But did you know that prescription costs are one of the biggest line items on most retirees’ health care budget?

 

Prescriptions tend to eat up your retirement budget for a couple different reasons:

 

  1. You will likely spend more on health care as you age.
    It’s a fact of life: as we age, we will probably need a little more upkeep. Add the cost of inflation into the mix, and you can almost be certain you’ll spend more in the years to come. Whether you’re healthy as a horse now or are already taking medications, it’s wise to build current and future drug costs into your budget.
  2. Insurance companies can change prescription coverage each year.
    Once you become Medicare eligible, you will need to pick a health plan that provides medical and prescription coverage. Having this coverage will help ensure you aren’t exposed to huge medical costs. But you need to evaluate your drug coverage each year, because the insurance companies can (and do) adjust pricing each year. So if you aren’t paying careful attention, your drug costs can go up and cost you more.

 

So what can you do to manage these factors? We recommend reviewing your health plan each year to make sure it still meets your needs and budget. As your health needs evolve over time, the plan that worked one year may need to be switched the next year. In addition, your insurer may make changes to your coverage that no longer make it the right option for you. Performing this type of analysis is our advisors’ specialty. Let us help!

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