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Like the waistline of those in lockdown the projected costs of healthcare in retirement continues to expand, but, thankfully, in 2021 this expansion only grew at about a 3.00% increase from 2020 which happens to be one of the lowest in years.

For a couple, both 65 years old today, projecting to live until age 87 for the female and 85 for the male the expected cost to insure themselves will cost just over $410,000.00 for their Medicare premiums.

This projection is based on a couple being considered fully insured through Original Medicare which consists of coverage from Medicare Parts A and B, as well a Medicare Part D prescription drug plan and a Plan G Medigap policy (Supplemental Plan). All premiums are based on a national average.

Why the increase:

With premiums remaining relatively flat from 2020 the projected rates of inflation for coverage are expected to grow at substantial rates between 2022 to 2028 according to the 2019 Medicare Board of Trustees Annual Report.

Unfortunately, future projections could not be used from the 2020 MBT Annual Report as the Medicare Trustees stated in its 2020 Annual Report that the “projections and analysis in this report do not reflect the potential effects of the COVID-19 pandemic on the Medicare program. Given the uncertainty associated with these impacts, the Trustees believe that it is not possible to adjust the estimates accurately at this time”.

Note: this projection does not reflect any surcharges for those who may enter into Medicare’s Income Related Monthly Adjustment Amount or IRMAA.

Health just happens to be the greatest asset a person has…the time to start planning for it is today.

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