"Many services including dental, vision and hearing care are not covered at all. To manage these costs, many beneficiaries purchase supplemental coverage. Medicare Advantage has become the dominant option, enrolling about 48% of beneficiaries in 2022, up from 37% in 2018, according to KFF. Many of these plans now charge no additional premium beyond Part B, although they often rely on narrower provider networks."
"Still, premiums remain the largest component of out-of-pocket spending for most retirees. In 2022, the median retiree spent $5,444 on medical costs, with spending at the 95th percentile more than double that amount, according to the brief. Out-of-pocket burdens vary widely across the retiree population. At the bottom of the distribution ladder, 5% of retirees had essentially none of their Social Security benefit left after medical spending. Even at the 10th percentile, retirees spent roughly three-quarters of their benefit on health costs."
Retirees face significant healthcare expenses despite Medicare coverage. Medicare Parts A, B, and D impose cost sharing, premiums, and additional out-of-pocket payments. Many services, including dental, vision, and hearing, are not covered, prompting beneficiaries to buy supplemental insurance. Medicare Advantage enrollment rose substantially and often charges no extra premium beyond Part B while using narrower networks. Median 2022 retiree medical spending was $5,444, with far higher spending at the 95th percentile. Out-of-pocket burdens vary by income, health status, and supplemental coverage, with Medicaid reducing burdens for the lowest-income retirees.
#medicare-costs #medicare-advantage #out-of-pocket-spending #supplemental-coverage #income-disparities
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