1 Review Benefits

When transitioning to retirement, it's crucial to thoroughly review your existing healthcare benefits. Look into what your employer provides for retirees and understand the terms of Medicare or other government programs. It's important to know the deadlines for enrollment and the coverage details, such as what services are included, which medications are covered, and the network of providers you can access. Be proactive in asking questions and seeking clarification to ensure you make informed decisions about your healthcare coverage.

2 Supplement Wisely

Choosing the right Medicare Supplement Insurance, also known as Medigap, can protect you from unexpected medical costs. Medigap policies cover some of the healthcare costs not covered by Medicare, such as copayments, coinsurance, and deductibles. Compare different Medigap plans to find one that fits your healthcare needs and budget. Keep in mind that the best time to buy a Medigap policy is during your six-month Medigap Open Enrollment period, as you will have more options and better rates.

3 Manage Prescriptions

For managing prescription medications , consider Medicare Part D or a Medicare Advantage Plan that includes drug coverage. Assess your current medication needs and anticipate potential future prescriptions. It's wise to evaluate the formulary —the list of covered drugs—of each plan to ensure your medications are covered. Also, look at the pharmacies in the plan's network and understand the costs associated with your prescriptions, including any deductibles or copayments.

4 Budget Accordingly

Creating a healthcare budget is essential for managing costs in retirement. Factor in premiums, out-of-pocket expenses , long-term care insurance , and potential unexpected medical expenses. Remember to account for inflation and the possibility of increasing healthcare costs over time. Regularly reviewing and adjusting your budget can help you stay on top of expenses and avoid financial surprises.